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Germany: Tax treatment of income from online advertising

Germany: Tax treatment, income from online advertising

Taxpayers that are not residents of Germany may not be fully taxed on their German-source income. However, there recently have been situations when the tax authorities imposed tax liability on payments made to non-resident internet portal operators for online advertising (that is, withholding tax obligations were imposed with regard to such payments).


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Because there were conflicting treatments of such payments, the German Federal Ministry of Finance (BMF) issued guidance basically providing that payments received by non-resident platform operators and internet service providers for the placement of online advertising on internet pages were not subject to tax withholding (or a “tax deduction” as referred to by some tax professionals).

Read a May 2019 report [PDF 341 KB] prepared by the KPMG member firm in Germany

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