Our services > Construction withholding tax
Construction withholding tax (Bauabzugsteuer)
Stop losing 15% of your invoices
Do you have a construction business in Germany? At ProfiDeCon, we will make sure you receive your money in full. We will arrange an exemption from the construction withholding tax for you.
- We have already processed over 3,000 exemption applications
Making your business on German construction sites easier
Obtaining an exemption from the construction withholding tax (the so-called Freistellungsbescheinigung) with our help means for you:
- Money in full: Your invoices will be paid without unnecessary deductions, allowing you to better plan investments and company growth.
- Fast and smooth processing: We have extensive experience with German authorities. We know what they require and how to speed up the whole process.
- A clean slate with the authorities: We will help you fulfill all registration obligations in Germany, which are a necessary condition for granting the exemption.
- Communication in your language: You build, we communicate with the German tax authorities. We will explain everything essential clearly and in English.
With our help, you will avoid these complications:
1
Withholding of payments (Cash flow):
Without a valid exemption, you will receive remuneration reduced by the withholding tax. We will arrange a certificate that prevents this right from the start.
2
Complex processing of the Freistellung:
The process of obtaining the exemption requires communication with the Finanzamt and providing numerous documents. We will handle all this bureaucracy for you.
3
Refund of already deducted tax:
If your client has already deducted the tax and remitted it to the German tax office, don’t lose hope. We will help you file an application for a refund (Antrag auf Erstattung) and with any further communication.
4
Errors in applications and rejections:
An incorrectly filled out application or missing tax registration in Germany means a rejection. We guarantee professional accuracy and the fulfillment of all requirements.
Contact us today to book your initial consultation
Don’t wait until your first invoice arrives hundreds or thousands of euros lower.
Construction withholding tax in Germany – Key facts
Tax rate
15% of the invoiced amount.
If you invoice without VAT, the deduction can climb to almost 18%, as it is calculated from the amount including VAT.
Who deducts it from whom?
The client from their subcontractors performing construction work in Germany.
How to avoid it
By presenting a valid Freistellungsbescheinigung certificate to your client.
Validity of the certificate
It is usually issued for a limited period (mostly for 1 year), after which it must be renewed.