Case Study – IT Consultant Business Intelligence
Dutch IT Business Intelligence Consultant secured a €600 a day contract with a German client through a UK Recruitment Agency, 6 month contract with a possible 12 month extension. Contractor had no knowledge of the German tax system or what his options were in terms of legal, compliant payment structures for international contractors working in Germany.
Contractor required a local payment structure, either a company with a local AUG license or a Contractor Management Company that could provide a Managed Frieberufler (Self-Employed) Solution. Contractor approached Contractor Taxation to discuss their situation and to provide a range of options and solution providers he could choose from.
We introduced the Consultant to 3 of our German partner companies. One with a full AUG License that can provide a fully employed solutions and two others that specialise in Frieberufler (Self-Employed) Solutions. The candidate was able to compare the 3 options given to him and decided to go ahead with one of the Managed Self-Employed Solutions as he found that they provided him with the best retention on his gross billing whilst still being compliant with local tax regulations.
The company he chose then set up a contract with the contractor’s agency in the UK. Providing their local tax registration certificates and certificate of incorporation to the recruitment agencies compliance team. The local partner handled invoicing the agency, receiving funds, filing of tax and social security in Germany and payments to the consultant. The funds were transferred to the Customer on the same day they were received by our local partner.
The Consultant was able to select between 3 different options and chose a company that best suited their particular situation, ensuring the highest possible legal retention. He is now able to focus on his contract rather than concerning himself with invoicing, tax compliance and payments in Germany.
Products and services the consultant used
- Local tax services
- Reporting and payment of taxes
The consultant used the services of their preferred choice from our 3 local partners in Germany to invoice the UK recruitment agency, receive the funds, pay the consultant, pay the consultants local tax and social security, lodge tax and social security documents to the German tax authorities, manage annual and quarterly returns.