Job Discussion Forums

[prophetNZ]

Hello all,

I posted this in another forum but had no replies, I was hoping someone out there might be able to clear this up.

I have been asked (by a company in New Zealand) to do a short contract job in a German company. This one time, one month contract is being organised by the company based in New Zealand to which I am an external contractor. The German company will pay the NZ company for my services and I will receive a fee from the NZ company, this fee will be held in my NZ bank account and used when I travel back home on holiday to NZ.

I currently live in Germany, pay tax here etc, so I would like to know if I have to pay tax to NZ (where I am contracted for the job) or Germany (where I am a freelance teacher and am currently living and intending to stay).

I have been offered advice that I only need to pay tax in NZ but I have also heard about double tax etc. I want to do all this legally without being hit too hard.

I hope this isn't too confusing
Thanks,
ProphetNZ

[scot47]

Sounds like a question for a tax accountant. You are unlikely to get accurate information here.

[prophetNZ]

[Seeker of truth]

Have you tried asking the people who will be contracting out your services? I'm sure they've dealt with this issue before.

[poro]

You pay tax in the country in which you are resident for tax purposes. So if you live in Germany, that's where you ought to be paying your taxes.

Note, however, that you won't have to declare your earnings until you submit your tax returns in the following year. I believe in Germany you have to do this by the end of March - but, you can apply for an extension which would allow you to delay submittal until the end of September, or thereabouts. (And of course, if the NZ company doesn't actually pay you this year, but in 2006, you won't have to declare it until 2007).

Hope this helps, and please let me know if you need any more info.