German Chocolate Tax » From: Toronto, Ontario, Canada Dear TaxMama, I came across your site and was hoping you could help as I am a bit of a novice when it comes to tax matters. My company is collecting income from a German Organization and I am not a resident of Germany but a corporation resident of Canada. I was told that there was a form that a could fill out that is used to reduce or eliminate foreign tax on this foreign income. I have contacted the German Consulate and Embassy here in Canada as well as the Canadian Embassy in Germany all to no avail. I am unsure of the term or name of this form but have been told that it is sometimes referred to as a Form for Double Taxation or a Waiver on Withholding Tax. TaxMama I was hoping you could help me in finding the name, term or actual form and agency that dispenses it. Or at least someone who can assist. Thank you for your time Joanne Dear Jeff, Good for you - building a business that spans the globe! Is the German company trying to withhold money (taxes) from your check? It's not clear to me if you are trying to reduce German taxes on the money or Canadian taxes. (e.g. you don't want Germany to tax you on the foreign income, or you don't want Canada to tax you on the German income?) If you are talking about not paying Canadian taxes on German income .... I would suspect that if your corporation has income from in Canada, from any source, you would have to pay tax on it. However, Revenue Canada may have a provision similar to that of the IRS. If you PAY foreign taxes, you can reduce your US taxes by some amount similar to the foreign taxes you pay on that same money. Check with Revenue Canada for guidance. Also, remember to check with your provincial tax department. In the US, not all states provide a credit for foreign taxes. Here is a very interesting page on Ontario's site On the other hand, if you are looking for information about Germany try starting here You may be able to write to the webmaster there and ask for a better contact. If you are doing business with Germany on a large scale, you may want to find a consultant who has expertise in the ins and outs of German taxation. Just a general note, though. For companies in the US that pay someone outside the US to work for them, we do not have to withhold any US tax money. After all, the work is not being done here in the US. So, I am unclear on why a German company would need to withhold German taxes on money they pay a non-German to do work outside Germany. That simply doesn't make sense to me. Good luck! Best Wishes, Eva Rosenberg Click Here for TaxMama's Honor System