Tax advisers: how to support clients based outside Germany

Who receives the tax office's letters?

Letters go to the client first, even when the client lives or has their seat outside Germany. § 122 (1) AO sets out who receives an administrative act:

• The client: it is notified to the person it is meant for (sentence 1).
• You, if the tax office chooses: it can also be notified to an authorised representative (sentence 3).
• You, as a rule: if the tax office has your power of attorney to receive letters (sentence 4, below).

Abroad, one month counts: if a letter goes abroad by post, it counts as notified one month after it was posted (§ 122 (2) no. 2 AO). This does not apply if it did not arrive, or arrived later; in case of doubt, the tax office must prove receipt and its date. From that day, the one-month period for an objection runs (§ 355 AO).

Outside the EU and the EEA, § 123 AO adds a rule: for clients without residence, habitual abode, seat or management in Germany, the EU or the EEA, the tax office can ask them to name an authorised recipient in Germany within a reasonable period. If they do not, a letter counts as delivered one month after it was posted, and an electronic document on the fourth day after it was sent. This only falls away if it is established that the letter did not reach them, or reached them later.

More on this in our guides on the authorised recipient and on deadlines and deemed delivery.

Which ways are there to receive the letters?

There is no ranking here. Which way fits depends on your client and your mandate. The first two both name a recipient in Germany, which is what § 123 AO asks for.

Which tax points should you check for clients abroad?

• Limited tax liability (beschränkte Steuerpflicht): individuals without residence or habitual abode in Germany are subject to limited income tax liability if they have German income within the meaning of § 49 EStG (§ 1 (4) EStG).
• Application for unlimited tax liability: on application, they are treated as subject to unlimited tax liability for their German income, but only if at least 90 % of their income is subject to German income tax, or the rest does not exceed the basic tax-free allowance (Grundfreibetrag) under § 32a (1) EStG. The allowance is reduced where conditions in the country of residence make this necessary and appropriate, and the foreign tax authority must certify the foreign income (§ 1 (3) EStG).
• Double tax treaties (Doppelbesteuerungsabkommen): check whether Germany has a treaty with the country of residence, and which state may tax which income.
• Extended limited tax liability (erweiterte beschränkte Steuerpflicht, § 2 AStG): can apply to German nationals who were subject to unlimited tax liability for at least five of the ten years before that liability ended, now live in a low-tax country or in no country, and still have substantial economic interests in Germany. It lasts until the end of the tenth year after the year in which unlimited tax liability ended.

These are pointers, not a full checklist. Whether and how they apply depends on the individual case.

Which steps does your office take?

1. 01Clarify the status: does your client live or have their seat in the EU or the EEA, or outside? Which German income remains?
2. 02Choose the way: your office with a power of attorney to receive letters, or a mail service as authorised recipient.
3. 03Power of attorney and naming: for your office, submit the power of attorney to receive letters to the tax office, in writing or as data under § 80a AO. A mail service is named by your client themselves; with PortoDoc, the client's account shows under “For the tax office” what to enter.
4. 04Agree on forwarding: if the letters go to your client's account, agree that your client sends you every letter from the tax office as a PDF, and how quickly.
5. 05Keep the deadlines in your office: record each deadline from the letter itself. PortoDoc does not monitor deadlines.

How does PortoDoc fit in?

1. 01Address: Your client signs up and gets a postal address in Ahrensburg near Hamburg with a personal PD number. It is a delivery address for letters, not a business, registered-office or imprint address.
2. 02Naming us: Your client signs the power of attorney that includes § 123 AO. Under “For the tax office”, the account shows exactly what to enter. Your client names PortoDoc to the tax office themselves.
3. 03Scan: The tax office writes to us. We scan each letter, and your client gets a notification by e-mail. The letter appears in your client's online account as a PDF.
4. 04AI aids: Every plan includes an English AI translation for your client; depending on the plan, your client also gets an AI summary: non-binding aids. From the Business plan, an AI deadline hint marks possible deadlines: a non-binding aid. The letter itself is what counts, and you check every deadline yourself.
5. 05Your work: Your client passes the letters on to you, and you reply to the tax office. We do not file returns, give tax advice or monitor deadlines.

PortoDoc is operated by Postuvio UG (haftungsbeschränkt), Am Tiergarten 10-12, 22926 Ahrensburg, Germany. Letters arrive in Ahrensburg (Schleswig-Holstein); data is stored on servers in the EU (Hetzner, Finland).

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