Tax law is as complicated and inscrutable as dense fog. Our team of experienced tax experts guides you through your tax issues and supports with practical information on the diverse and complex tax topics.

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Aus unseren Inhalten

Aus unseren Inhalten

Aus unseren Inhalten
Overview: Property tax reform in the federal states

Already at the end of 2019, the Bundesrat passed the legal basis for the reform of the property tax. The central element of the reform is the possibility for the federal states to develop their own approaches (so-called opening clause) for the necessary property valuation (deviating from the so-called federal model). In the following, we provide an overview of the implementation status in the individual federal states.

Sales tax or insurance tax for guarantee commitments

In May 2021, the Federal Ministry of Finance had commented on an insurance tax liability for warranty commitments in the motor vehicle trade and shortly thereafter clarified that the statements should apply regardless of the industry.

Bundestag approves tax-free inflation compensation premium of up to 3,000 euros

As part of the third relief package, the German government had agreed on the temporary introduction of a tax-free special payment. This was adopted by the Bundestag today in the second and third readings.

Mobile working abroad

Companies are increasingly focusing on mobile working abroad. But how exactly can this work? The brochure "Orientation Guide in the Legal Jungle" provides an overview of the legal framework.

Extended filing deadlines for declarations of assessment according to § 18 AStG

With the BMF letter dated September 11, 2023, the BMF extends the submission deadlines for declarations pursuant to Section 18 AStG. However, this only applies to non-advised cases.

The design of the investment premium

The upcoming Growth Opportunities Act is to introduce an investment premium for certain climate protection investments. With the resolution of the government draft, the first details of the content of the planned regulation are now known.

The Growth Opportunity Act - A First Overview

Most recently, the passage of the planned Growth Opportunities Act had to be postponed due to the veto of the Federal Minister for Family Affairs. Now the government has finally got the bill off the ground. We provide an initial overview

Tax support measures after severe weather in Bavaria

On the occasion of the damage caused by past severe weather events, the state government in Bavaria is now responding with tax support measures for the three affected counties.

Pension provisions: Decision of the Federal Constitutional Court

In a recently published decision, the second senate of the Federal Constitutional Court comments on a judge's submission regarding a possible unconstitutionality of pension provisions and considers them inadmissible.

Cabinet approves bill for global minimum tax

During its meeting on August 16, 2023, the German government approved the government draft for the implementation of the global minimum tax in Germany.

"It must succeed on the second try!"

On the occasion of today's postponement of the cabinet decision on the Growth Opportunities Act, Dr. Ralph Wiechers, Member of the Executive Board and Head of the VDMA's Tax Department, explains:

"Strengthening the tax framework in Germany across the board"

Germany needs reforms. The draft Growth Opportunities Act is an important step in this direction, which must work across the board in terms of investment conditions.

New procedure for withholding taxes according to §§ 50, 50a EStG

The Federal Central Tax Office (BZSt) is currently informing the associations about upcoming changes in the tax withholding procedure according to § 50a EStG.

Russia suspends DTAs with 38 countries

Presidential Decree No. 585 of August 8, 2023 suspended 38 double taxation treaties with unfriendly states, including Germany.

"EU Bubble talks - 30 minutes insights from Brussels": Web seminar series launched

Attention Europe enthusiasts! With our new web seminar series "EU Bubble talks - 30 minutes insights from Brussels" we take a look behind the scenes of European politics and take you with us.

Restriction of interest deduction

On July 17, 2023, the German Federal Ministry of Finance presented a draft bill of the so-called Growth Opportunities Act, which, among other things, provides for a new regulation of the deductibility of interest (as of January 1, 2024).

Growth Opportunities Act strengthens Germany as a business location

In July, the German Federal Ministry of Finance presented the draft bill for a law to strengthen growth opportunities, investment and innovation as well as tax simplification and tax fairness (WtChancenG).

"Growth Opportunities Act strengthens Germany as a business location".

The German Finance Minister is taking the right approach with his proposals on investment and innovation conditions: Investment premium, expanded research allowance or improved loss offsetting will help medium-sized companies in particular

Save the Date! - VDMA Tax Erfas in Autumn/Winter 2023

The Tax Erfas of the regional associations of the VDMA have a long tradition. Also in the second half of 2023 we will offer these events again. we give you a little preview, when and where!

New EU Framework Agreement

In order to cope with the new world of work, a multilateral framework agreement will allow more flexible -deviating from the conflict of laws- regulations for teleworkers from July 01, 2023.

New Administrative Principles Transfer Pricing 2023

The BMF published its revised Administrative Principles Transfer Pricing 2023 (VG VP 2023) on June 6, 2023.

Similarly worded state decrees on Section 6a of the Real Estate Transfer Tax Act (GrEStG)

The tax authorities have published new identical state decrees on Section 6a of the Real Estate Transfer Tax Act (GrEStG). The amendments take into account, among other things, recent case law of the BFH.

Discussion proposal for the introduction of mandatory electronic invoicing for domestic B2B transactions

In April, the German Federal Ministry of Finance presented a discussion proposal to implement mandatory electronic invoicing for domestic B2B sales. This proposal follows an agreement of the governing parties in the coalition agreement. Based on electronic billing, an electronic reporting procedure of invoice data is to be implemented at a later stage in order to combat VAT fraud.

Guide - Value added tax in Europe

The sales tax handling of plant construction projects in the European states is very complex. Since the EU VAT Directive leaves many options open to the states, the VAT regulations vary greatly from state to state.

VDMA: Spare parts logistics companies concerned about plastic tax

At their spring meeting in Bruchsal, Germany, industry representatives organized in the VDMA Spare Parts Working Group discussed the potential consequences of the so-called plastic tax.

Warranty extensions - sales tax or insurance tax?

In a letter dated May 2021, the Federal Ministry of Finance published new regulations for an insurance tax liability of warranty extensions in the wake of a BFH ruling. The VDMA and other associations subsequently lobbied for clarifications and achieved a postponement of the regulations until Jan. 1, 2023.



BFH rules on the role of advance payments as administrative assets

A high level of down payments received can be a tax problem in inheritance tax when there is a change of generations. The BFH has now issued its first ruling.

Research allowance - secure funding!

The effort required to submit an application? Doable! Do you have questions? Then take advantage of our monthly online introduction and Q&A session on tax research funding.

India - Increase of withholding tax

In fiscal year 2023/2024 (01/04/2023 - 31/03/2024), India will increase the domestic withholding tax rate on remuneration for technical services and royalties from 10% to 20% plus Surcharge and Health Education Cess.

Current developments of tax-related topics

The event offered participants the opportunity to learn about and exchange information on current developments in tax law.

Facts and figures on the bureaucracy monster

VDMA is campaigning for less bureaucracy in work assignments in Europe. An overview of the facts and figures shows that there is still a long way to go before the Internal Market runs smoothly.

Private investment instead of higher social spending

Rejection of false desires is called for: The high tax revenues of the public coffers must not be channeled into higher social spending; instead, more tax funds are needed for better investment conditions in Germany.

Study on "Tax Compliance and Transfer Pricing

VDMA supports a study on "Tax Compliance and Transfer Pricing" by the University of Paderborn which is relevant for the practice and asks for your support until May 31, 2023.

Use tax policy to strengthen locations

The mechanical and plant engineering sector is particularly challenged by the transformation: It must not only provide the technological solutions, but also invest in new components and plants itself so that Germany can master the energy transition and digitalization. The intention of the Federal Ministry of Finance to focus on investment-friendly framework conditions is correct in approach. The announcement must be followed by concrete reform steps in tax law.

Brazil - New Transfer Pricing Regime

Brazil will in the future follow the OECD Transfer Pricing Guidelines, thus turning away from the previous special regime.

Rising interest rates

The steep rise in interest rates in recent months has direct consequences for intergroup transfer prices and will be the focus of future tax audits.

Discussion draft for Pillar II published

The BMF has published its first discussion draft for the national implementation of the global minimum tax in Germany.

Tightening of the obligations to cooperate in § 90 AO

In the future, taxpayers will be required to submit their transfer pricing documentation without a request within 30 days of being notified of the audit order.

Tax support measures for victims of the earthquake disaster in Turkey and Syria

On the occasion of the humanitarian catastrophe caused by the earthquake in the border region between Turkey and Syria, the German government now reacts with tax support measures

Cross-border telework between Germany and Austria

Based on the EU Commission`s Telework Guidance of May 13, 2022, Germany and Austria have created an agreement with foresight for the period after the COVID-19 special regulation from July 1, 2023.

6th Berlin Sales Tax Day with attractive program

On 9 / and 10.3.2023, the Berlin Sales Tax Day will take place in presence in Berlin.

Guarantee commitments: industry calls for clarifications

The BMF letter on the insurance tax liability of warranty commitments, which came into force on 1.1.2023, continues to lead to great uncertainty in the manufacturing sector about the treatment of warranty extensions/guarantees.

Updated BMF letter on research allowance

In the fall of 2021, the BMF had commented for the first time on details of the research allowance. Now an update of the administrative instruction has been published.

India - Form 10 F

CBDT provides relaxation, allows manual filing of Form 10F by non-resident taxpayers not having PAN till March 31, 2023.

Focus on service deployment - balancing capacity bottlenecks

Schengen visa may allow short-term deployment of non-EU service technicians in Germany.

VDMA Evaluation of the option model according to § 1a KStG

The evaluation of the so-called option model is already laid down as a government project in the coalition agreement of the "Ampel". The VDMA supports this project and has conducted a corresponding survey among its members.

Research allowance gains momentum: Mechanical engineering is strongest user

The VDMA has called for tax-based research funding with great commitment, and it was introduced in 2020. The research allowance has developed successfully so far, with mechanical engineering being the strongest user. At the same time, there is a need for optimization in order to make the research allowance even better known and to expand its success.

Turning point also in tax policy?

The term "turn of the millennium" characterized the past year 2022 like no other. In the meantime, this idea also seems to have reached economic and tax policy. However, not everything that is demanded in this context in terms of tax policy is suitable for supporting companies in a far-reaching transformation. On the contrary, some of it is clearly counterproductive. This applies in particular to considerations not only by some SPD politicians regarding inheritance tax.

New laws with tightening

In 2022, the new regulation for Transfer of Functions (FVerlV) came into force. The submission deadline of transfer pricing documentation will be dramatically shortened from Jan. 1, 2025.

Our expert and focus topics

Our expert and focus topics
Posting of Employees
The deployment of employees abroad is part of the daily business for many companies, but nevertheless regularly triggers many questions in the area of labor, tax, social security and immigration law.
Permanent Establishment Taxation
The permanent establishment is a tax fiction that can quickly become complex in its handling. Despite the fact that it is not legally independent, it triggers registration and tax declaration obligations in the source country, for example.
German tax law
Information on different fields of German taxation.
Wage Tax
German wage tax is one of the most relevant taxes for Corporations operating in Germany. This site shall give guidance in handling this field of taxes.
International Taxation
As a special field of tax law, international tax law deals with the problems of cross-border situations that are relevant for the taxation of individuals, partnerships and corporations.
Transfer pricing
Die Umsetzung regulatorischer Vorgaben zu Verrechnungspreisen wird eine der großen zukünftigen Herausforderungen für Unternehmen sein. Die Digitalisierung von Daten spielt eine immer zentralere Rolle und damit auch die Vernetzung der Steuerverwaltungen.
Work assignments in Europe
Regarding work assignments in Europe, three completely different topics - "reporting requirements", "social law: A1 certificate" and "labor law: posting of workers directive" - are increasingly moving into the spotlight.
Research Funding
In order to support long-term and future-oriented research and development, innovative projects are granted financial backing. In addition to collaborative and joint research, companies may also benefit from tax-based research funding.
VDMA Infoportal Ukraine War
The machinery and plant engineering sector condemns the Russian invasion of Ukraine in the strongest possible terms. The VDMA supporta its member companies in word and deed in order to master the many challenges that are arising.
The United States
The USA remains a key market for the German engineering sector. It is our biggest export market and investment location outside Europe. Local standards, complex tax laws and legal liability are just some of the challenges that new market entrants often have to deal with.
Plant Engineering
Mechanical and plant engineering companies from all over Europe are involved in the VDMA. Mechanical engineering is a familiar term to many, but what characterizes plant engineering?
Home Office
For many employees, working in a home office is a completely new situation that has caught them very unprepared due to the pandemic. This raises a host of practical and legal issues.
Technological Sovereignty
Technological sovereignty as a goal is gaining importance regarding the changed geopolitical situation. International division of labor and global trade are our drivers of prosperity and are existential, especially for the mechanical engineering sector.

Level 1 Themenwolke

To the point

To the point

Auf den Punkt Zitat Tax Department

"Germany ranks among the top industrialised countries in terms of corporate tax burden. The burden on companies must be noticeably lowered to keep the economy competitive."

Dr. Ralph Wiechers, Head of the Tax Department and Member of the Executive Board of VDMA

Auf den Punkt Zahl Taxes


hours are required for companies

of medium size to calculate their tax liability, prepare tax returns and pay taxes in Germany as a minimum.

Source: PWC-Studie Bürokratiekosten der Steuererklärung

Auf den Punkt Zusammenfassung Steuern

Degressive depreciation is the better alternative
Promoting investment in climate protection and digitization is the right thing to do. But an investment premium on specific goods is not appropriate:
  • Limiting it to certain goods is not open to technology and could even reduce innovations.
  • There are already various other environmental policy instruments that are used to steer investments.
  • Restricting them would unnecessarily complicate tax law.



Thu. 05.10.23 Thu. 05.10.23


  • Taxes Department

India increases the withholding tax rate on remuneration for technical services and royalties from 10% to 20% plus surcharge and health education cess.

Places available

Mon. 16.10.23 Mon. 16.10.23


  • Taxes Department

Find out about the tax issues you should consider for a successful work assignment in the US.

Places available

Mon. 16.10.23 Mon. 16.10.23


  • Tax Policy
  • Research, Innovation & Technology
  • Research Funding

Take advantage of our introduction and Q&A session online.

Places available

Fri. 03.11.23 Fri. 03.11.23


  • Energy Tax

In its current draft budget, the German government plans to abolish the electricity tax relief under Section 10 of the German Electricity Tax Act (StromStG), the so-called "Spitzenausgleich", as of January 1, 2024.

Places available

Mon. 13.11.23 Mon. 13.11.23


  • Regional Subsidiary Baden-Wuerttemberg

In our

Places available

Wed. 15.11.23 Wed. 15.11.23


  • Regional Subsidiary Bavaria

In our fall roundtable, our tax experts present important innovations in a clear and practical manner.

Places available

Unsere Leistungen

Unsere Leistungen
Committees of the Tax Department
Within our working groups, you will have the opportunity to exchange experiences with other companies on a wide range of topics and to actively participate in shaping major issues relating to taxation.
Newsletter following our specialist topics
Our topic-based newsletters contain valuable information on the latest developments and the most important decisions in the field of tax law.


Tax Database: Taxation of plant construction projects
The taxation of plant construction projects abroad is hardly a walk in the park. These country-specific resources provide an overview of the relevant tax framework.


Tax Database: Taxation of technical services
The taxation of maintenance, repairs, etc. performed abroad is becoming increasingly challenging. With this country-specific information, additional tax burdens can be avoided in advance.
Overview: Double taxation agreements
In addition to the permanent establishment period, the country overview contains information on the 183-day rule, which, among other things, governs the tax exemption for wages in Germany.
Events of the Taxes Department
The tax department offers seminars and events for member companies on current topics and tax issues, also in cooperation with the Mechanical Engineering Institute (MBI).


Guide Tax Compliance Management Systems
Together with company representatives, the VDMA has created a signpost which contains practical implementation examples for the implementation of a Tax Compliance Management System.



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Benefits for you as a member

Largest industry network in Europe

3,600 primarily medium-sized member companies in the capital goods industry make the VDMA the largest industrial association in Europe and the most important network organization in the industry.

Strong representation of interests

The VDMA is the most important voice of the machinery and equipment manufacturing industry. It represents the common economic, technical and scientific interests of the industry in Germany and around the world.

A wide range of services

More than 500 VDMA employees worldwide support you with practical services to make the right decisions in your company - along the entire value chain.