GERMANY: Case law on technical and organisation services in connection with artistic performances in Germany
The German Bundesfinanzhof decided in 17 November 2004 (decision nr. I R 20/04) that income from the provision of technical services in connection with artistic performances in Germany is only in exceptional circumstances subject to withholding tax in Germany.
In an article in Tax Notes International two German authors (see below) describe the current situation, in which the German tax authorities appear to still take the view that withholding tax is due on the entire sum received by non-resident production companies, i.e. including the remuneration for supportive activities. Therefore there are still German compliance problems with quite possible severe financial consequences.
