Place of Residence outside Germany Sample Clauses

Place of Residence outside Germany. If the managing director’s sole place of resi- dence is outside Germany, the right to levy taxes on income earned by him as managing director passes under the majority of Double Taxation Treaties to the Federal Republic of Germany if he is employed there. German law assumes that the management of a GmbH is always located at the company's registered office. The Federal Republic of Germany is also authorised to levy taxes if one of the three following conditions is satisfied: • the managing director resides in the Federal Republic of Germany for more than 183 days of the year; • the managing director receives his salary from the German company; • the managing director's salary is charged to the German company. If the managing director has neither a place of residence nor usual place of residence in the Federal Republic of Germany he is subject to limited taxation only, taxes being levied by deduction of income tax. Taxation procedures for persons subject to only limited taxation normally end with the deduction of income tax, i.e. no refund procedures are subsequently possible. Any exemptions are stipulated in Double Taxation Treaties. Criticism by the European Court of Justice of German legisla- tion may lead to a harmonisation of taxation for nationals and non-nationals - at least for the territory of the EU.