California
Dear all,
My name is Philipp and I am a visiting scholar working at Stanford University since May 2017.
I started working at stanford under the tax exemption treaty between the US and Germany described in article 20(1) of the Tax Treaty Documents (https://www.irs.gov/businesses/international-businesses/germany-tax-treaty-documents). Since January of this year I am not tax exempt anymore,as the Tax treaty goes for a limit of 2 years, and upon looking at the article more in detail I came over this sentence. “As clarified in Paragraph 18 of the Protocol, unless the competent authorities agree otherwise, if a professor or teacher remains in the host country for more than the specified two year period, he may be subject to tax in that State, under its law, for the entire period or his presence”
Now, I am a bit unsure about this last sentence, does it mean that I need to pay back retroactively all the tax exempt taxes of the last two years because I stayed longer than two years? or does it mean that from now on I have to pay normal taxes for the entire period of my remaining presence?
I really appreciate if somebody could help me figure this out or point me in the right direction
Best wishes
Dear all,
My name is Philipp and I am a visiting scholar working at Stanford University since May 2017.
I started working at stanford under the tax exemption treaty between the US and Germany described in article 20(1) of the Tax Treaty Documents (https://www.irs.gov/businesses/international-businesses/germany-tax-treaty-documents). Since January of this year I am not tax exempt anymore,as the Tax treaty goes for a limit of 2 years, and upon looking at the article more in detail I came over this sentence. “As clarified in Paragraph 18 of the Protocol, unless the competent authorities agree otherwise, if a professor or teacher remains in the host country for more than the specified two year period, he may be subject to tax in that State, under its law, for the entire period or his presence”
Now, I am a bit unsure about this last sentence, does it mean that I need to pay back retroactively all the tax exempt taxes of the last two years because I stayed longer than two years? or does it mean that from now on I have to pay normal taxes for the entire period of my remaining presence?
I really appreciate if somebody could help me figure this out or point me in the right direction
Best wishes