I'm the shareholder of a GmbH in Germany. The GmbH is going to involve a qualified employee (manager) from a Non-EU country. Since this person is not allowed to stay in EU more than 90 days within 180-days period with Schengen visa he needs to get the residence permit. How can we pay him salary if he gets the permit? Is it possible to pay it discretely for the periods he actually worked? Or is it required to pay the salary each month? How do we pay taxes in that case?
According to section 614 of the German Civil Code (Bürgerliches Gesetzbuch), generally remuneration is to be paid after performance of the services. If remuneration is assessed by time periods, then it is to be paid at the end of the individual time periods.
It is usual to pay employees on a monthly basis. Specific labour regulations have to be borne in mind, e.g. that the remuneration for vacation days has to be paid in advance. Another example of specific labour regulations are the adherence to and documentation of the payment of the minimum wage. For detailed information on the minimum wage, please see the website of the German customs authorities: www.zoll.de
According to section 5 of the German Residence Act (Aufenthaltsgesetz), the granting of any residence permit presupposes amongst others, that the foreigner’s subsistence is secure. Therefore it should be discussed with the competent local immigration office (Ausländerbehörde) or German mission abroad, if the payment for periods worked is in line with German residence law in your individual case.
For general information on the German social security system, please see the following website which is part of the "Investment Guide" of Germany Trade & Invest (GTAI): www.gtai.com. The Federal Central Tax Office provides more detailed information on the payment of wage tax online: www.steuerliches-info-center.de
As it is not possible for GTAI to give a binding advice or to go into detail on all possible consequences in this online forum, please contact a lawyer for an individual advice.
Source: Germany Trade and Invest
- Gesellschaft für Außenwirtschaft und Standortmarketing mbH
Oktober 2016
