What can happen to a fee abroad

When a self-employed performer who isn't tax-resident in Germany is paid for a performance there, the payer of the fee usually has to withhold German tax: 15% plus a 5.5% solidarity surcharge on that tax. The payer sends it to the Federal Central Tax Office (BZSt).

Exceptions exist, for example for small fees (up to €250 per performance), for employment, under tax treaties, or when the contract puts the tax cost on the payer.

1. 01

   Before payment

   Where a tax treaty gives relief, the payer can only skip withholding if a valid exemption certificate from the BZSt is in place before the fee is paid. Missing it doesn't automatically rule out a later refund claim.

2. 02

   The paper to ask for

   Steuerbescheinigung (§ 50a EStG)

   A tax certificate showing what was withheld and paid. The payer of the fee must issue it on request; that isn't always the venue.

3. 03

   Afterwards

   Refund claims follow their own procedure; the application period generally runs four years from the end of the year in question, and timing depends on the procedure and the treaty. Whether the tax can be credited at home is for an accountant to assess; the certificate supports that.

Sources: § 50a EStG · § 50c EStG · BZSt: withholding under § 50a · BZSt guidance for artists (PDF)

When one payer expects its payments to a non-UK-resident performer in a tax year to exceed the personal allowance (£12,570 for 2026/27), it deducts basic-rate tax of 20%, starting from the first payment. HMRC treats this as a payment on account toward the final UK tax.

The threshold decides whether tax is deducted; it isn't subtracted before the 20% is calculated. Exceptions and HMRC authorisations exist.

1. 01

   Before payment

   A lower deduction can be requested from HMRC's Foreign Entertainers Unit with form FEU8, based on expected income and costs. The application must arrive at least 30 days before the payment is due. With deposits, that can be well before the show.

2. 02

   The paper to ask for

   FEU2 tax deduction certificate

   The payer provides it. It shows the tax deducted from the payment.

3. 03

   Afterwards

   Depending on the situation, a UK Self Assessment return or a repayment claim settles the final amount. Whether the tax can be credited at home is for an accountant to assess.

Sources: HMRC: pay tax in the UK as a foreign performer · HMRC: payments to foreign performers · FEU8 application · FEU2 certificate · HMRC rates and allowances

For a performer who is a nonresident alien for US tax purposes and works as an independent contractor, the payer (the withholding agent) generally withholds 30% of the gross US performance income. Withholding can be more than the final tax.

Tax residency and citizenship status decide this, not just where someone lives. Employees can be taxed differently.

1. 01

   Before the first show

   An application on IRS Form 13930 can lead to a Central Withholding Agreement, which bases withholding on expected net income. The IRS must receive it at least 45 days before the first event it covers; late applications are denied.

2. 02

   The paper to ask for

   Form 1042-S

   Issued by the payer, generally by 15 March of the following year (extensions possible). One form can cover several payments. It shows what was withheld and is used to claim credit for US withholding on a US tax return.

3. 03

   After the year ends

   If more was withheld than the tax owed, the difference may be recovered by filing a US tax return. Whether anything can be credited at home is for an accountant to assess.

Sources: IRS Publication 515 · IRS: Central Withholding Agreements · Form 13930 (PDF) · Form 1042-S instructions · IRS FAQ