Bureaucratic Monster: Withholding Tax for Foreign Authors
The Game Designers Association (SAZ) is a professional association representing the interests of over 200 game authors who are not resident in Germany. Like all foreign licensors and artists, they are affected by the unsatisfactory procedure for exemption and reimbursement of withholding tax (tax deducted at source under Section 50a of the German Income Tax Act, EStG).
In addition to the damage to the competitiveness of the German cultural and media industry, foreign authors and artists in particular suffer from the disproportionate bureaucracy and extremely long processing times, even though, according to the Federal Central Tax Office, there is no evidence of abuse in the creative industries.
The Game Designers Association (SAZ) has therefore submitted a position paper and proposals to the relevant ministries and members of the German Bundestag. In addition, we have joined an initiative of associations from the cultural and creative industries, which have also issued a statement on the subject.