Clarification required on German tax on income generated in India
This query is : Resolved
15 June 2022
I am currently a resident of India. I will be moving to Germany for long-term employment this August. I have recently established a partnership in India and I would like to understand the tax implications in Germany.
1. The firm has two partners including myself. The other one is a resident Indian.
2. The firm is registered in India.
3. The entire capital is sourced from within India.
4. The entire profit is generated within India.
5. The firm pays the Indian tax on the entire profit.
6. I own the maximum profit share.
I have the following questions:
1. Do I need to pay tax in Germany for my share of profits? Or is it non-taxable?
2. Is my Indian resident partner liable for tax in Germany?
3. Would the answers to the above question be different if I convert the partnership firm to Corporation?
1. The firm has two partners including myself. The other one is a resident Indian.
2. The firm is registered in India.
3. The entire capital is sourced from within India.
4. The entire profit is generated within India.
5. The firm pays the Indian tax on the entire profit.
6. I own the maximum profit share.
I have the following questions:
1. Do I need to pay tax in Germany for my share of profits? Or is it non-taxable?
2. Is my Indian resident partner liable for tax in Germany?
3. Would the answers to the above question be different if I convert the partnership firm to Corporation?
16 June 2022
1 You have to declare your Indian income and pay difference in tax as per DTAA.
2 Not liable as he is resident of India.
3 No difference.
2 Not liable as he is resident of India.
3 No difference.
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