Notifications pursuant to Sections 109a and 109b EStG by 29 February 2024

Entrepreneurs and corporations under public and private law must submit a notification to the tax office in accordance with Section 109a EStG or Section 109b EStG by 29 February 2024 by means of automated data transmission for fees that they paid in 2023 for certain services outside of an employment relationship to natural persons or associations of persons (groups of persons) without their own legal personality or for certain payments that they made abroad in 2023.

Notification obligation in accordance with Section 109a EStG

The reporting obligation pursuant to Section 109a EStG applies if natural persons or associations of persons provide certain services outside of a taxable employment relationship and fixed remuneration limits are exceeded.

Entrepreneurs (the payers) are subject to the reporting obligation if the following services are provided to them:

• Services as a member of the supervisory board or administrative board
• Services as a building society representative and insurance agent
• Services as a foundation board member
• Services as a lecturer, teacher and instructor
• Services as a colporteur and newspaper deliverer
• Services as a private business broker
• Services as a functionary of public corporations
• Services provided within the framework of a freelance service contract and subject to compulsory insurance pursuant to Section 4 para. 4 ASVG

The following data must be provided:

• Name, address, national insurance number
• Type of service provided
• Calendar year in which the remuneration was paid
• Remuneration (including remuneration in kind and reimbursement of costs) and VAT, if applicable

The notification may be omitted in individual cases if the total net remuneration paid in the calendar year does not exceed EUR 900.00 and the net remuneration for each individual service does not exceed EUR 450.00 (per recipient).

Notification obligation in accordance with Section 109b EStG

The notification obligation pursuant to Section 109b EStG applies if payments are made abroad for certain services, provided that the services are performed in Germany. Entrepreneurs (the payers) are subject to the reporting obligation if the following services are provided to them:

• Services as a lecturer, teacher and researcher
• Services as artists and writers
• Services as a civil engineer
• Services as a doctor, veterinary surgeon, psychotherapist and midwife
• Services as a lawyer, notary and chartered accountant
• Services as a management consultant and asset manager
• Services as a journalist and interpreter
• Services as a member of the supervisory board, property manager and significantly involved managing director (more than 25 %)
• Commercial and technical advice
• Intermediary services that are provided by persons with unlimited tax liability or that relate to Austria (e.g. relate to domestic assets) must also be reported.

The following data must be reported:

• Name (company), residential or company address of the service provider with international country code of the country concerned
• In the case of an association of persons (community of persons) without its own legal personality or a corporation as the service provider, also the natural person with a significant presence in Austria;
• With regard to the service provider and, if applicable, the natural person acting as the main representative in Austria:
  • the Austrian tax number; if this is not available,
  • the Austrian national insurance number; if this is not available
  • the VAT identification number (UID number); if this is not available
  • the date of birth
• the international country code of the country or countries to which the payments were made
• the amount of the payments in favour of the service provider and the calendar year in which the payments were made

However, the notification may be omitted if

• all payments made abroad in a calendar year in favour of the same service provider (payments made to domestic bank accounts of the same recipient are not to be included in the limit) do not exceed EUR 100,000.00,
• the payment is subject to a tax deduction pursuant to Section 99 EStG, or
• the recipient of the payment is a foreign corporation that is subject to corporation tax of at least 15 % abroad.

Deadlines and competent authorities

The previous year’s data must be reported by means of automated data transmission by the last day of February or, if the official form is used, by the end of January of the following year.

If the requirements for a notification obligation under both Sections 109a EStG and 109b EStG are met, only a single notification under § 109b EStG must be submitted.

A wilful breach of the reporting obligation constitutes a financial offence that can be punished with a fine.

Our experts will be happy to support you in submitting these reports.