Businesses providing or purchasing construction services in Germany are confronted with the 15 % tax withholding for construction work as defined in Sections 48 to 48d of the German Income Tax Act. By means of a certificate of exemption, tax withholding can be avoided. On July 19th, 2022, the German Federal Ministry of Finance published a revised letter on the tax withholding for construction work. In this article, Matthias Mitterlehner supplements the explanations of the German Federal Ministry of Finance by significant experience from his daily consulting practice.
