As a result of the Act to Modernise Corporation Tax Law (KöMoG), partnerships will in future have the option of being taxed in the same way as a corporation.
The legal framework is complex and must be carefully examined.
As of 1.1.2020, new EU law on chain transactions was also implemented in Germany with § 3 para. 6a UStG-neu. However, the previous legal situation continues to apply to a large extent. In the following, the regulations will be presented in their entirety.
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.
Together with company representatives, the VDMA has created a signpost which contains practical implementation examples for the implementation of a Tax Compliance Management System.
Between 10/12/2019 and 14/7/2021, the German Federal Ministry of Finance (BMF) has continuously pushed for a "reform" of the German transfer pricing rules.
At the 48th German-Brazilian Economic Commission on 19 October 2021, the VDMA was able to present the concerns of the mechanical engineering industry.
The BMF refrains from adjusting the foreign per diem and foreign overnight allowances according to the Federal Travel Expenses Act as of January 1, 2022. The regulations made for the year 2021 shall continue to apply for 2022.
Bertram Kawlath, Managing Director Schubert und Salzer GmbH on tax policy in the federal election campaign
Carl Martin Welcker, Managing Director Alfred H. Schütte GmbH & Co. KG on tax policy in the federal election campaign
Dr. Manfred Wittenstein, Chairman of the Supervisory Board of WITTENSTEIN SE on tax policy in the Bundestag election campaign
Karl Haeusgen, Chairman of the Supervisory Board HAWE Hydraulik SE on tax policy in the Bundestag election campaign
In a letter to the leading candidates of the major parties in the German states, entrepreneurs from all VDMA state associations demand real relief for businesses - and an end to any wealth tax plans.
The Austrian Ministry of Finance published the draft assessment of the revised Austrian Transfer Pricing Guidelines 2021 on the BMF website on Dec. 4, 2020.
Coming soon
A study by the Ifo Institute clearly points out the major benefits for growth and employment of accelerated depreciation and also of a reduction in the corporate tax rate.
Plant construction projects are a complex matter of international taxation of large plants.
Who taxes what?
Even a low wealth tax rate would substantially increase the tax burden on corporate income, from which it must be paid. This endangers urgently needed investments. Therefore: Hands off wealth taxes or wealth levies!
The tax-based research promotion scheme is proving to be an ideal instrument for medium-sized industry. Most applications and approvals are for mechanical and plant engineering. Criticism of the alleged lack of demand is therefore misguided and premature.
India is one of the 139 member countries who are already onboard to the two pillar plan for reformation of international tax rules and have expressed their commitment thereto.
Now in effect: 30 % withholding tax on remuneration paid to foreign companies without F-Tax registration, introduction of economic employer concept and reporting obligations to the tax authority.
From Excel sheet to optimized transfer pricing system
From theory to practical implementation.
Tools for the implementation of a transfer pricing project.
For the first time, the OECD is providing valuable interpretive guidance on transfer pricing practice for the arm’s-length valuation of controlled financial transactions.
The video explains in two minutes how and why technical services trigger double taxation.
When company cars are provided for private use, it often happens that employees bear certain costs. Such costs borne by the employee reduce the value of use for income tax purposes.
The Federal Ministry of Finance has issued an updated letter regarding the tax recognition of entertainment expenses. The main focus is on new document requirements due to the Cash Security Protection Ordinance and principles for digital or digitised documents.
In a ruling on the wage tax treatment of cancellations of company events at short notice, the BFH has clarified that the costs of the external framework are only to be allocated to the actual participants.
In a letter dated 9.6.2021, the BMF amends the sales tax application decree. Due to new ECJ case law, a previous delimitation criterion is no longer applicable.
In a letter dated May 11, 2021, the German Federal Ministry of Finance commented on the distinction between sales tax and insurance tax for guarantee commitments.
On the occasion of the current flood disaster, the Federal Ministry of Finance has issued a letter with equity measures in VAT.
As soon as employees work for a company abroad, it must be clarified whether this triggers taxation rights in the respective country of activity by virtue of a tax "nexus".
On the occasion of the current flood disaster, the federal states of North Rhine-Westphalia and Rhineland-Palatinate have published disaster decrees with simplification regulations.
The Federal Ministry of Finance is extending the simplification rules for the income tax treatment of so-called register cases.
If employees are under pressure due to emergency situations, employers may also assist their employees by providing tax-free support benefits under certain circumstances.
The next federal government is urgently required to make a significant contribution to more private investment with the help of reforms in corporate tax law. The overall burden must be noticeably lowered in order to keep the economy competitive.
Employees are increasingly working abroad. A comprehensive review of the individual social security circumstances is necessary in many cases.
For a long time, there was an incongruity regarding the tax treatment of exchange rate effects in connection with loans between related companies.
The German Corporate Income Tax Modernisation Act (KöMoG) changes the tax balance sheet treatment of excess/shortfall transfers by corporate tax groups.
Poland has adjusted its transfer pricing regulations twice in the last 5 years and tax audits can include three different regimes. Taxpayer should carefully align periods with different requirements.
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).
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).
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).
India's growing demand for industrial equipment is increasing the demand and sales of foreign goods from the mechanical and plant engineering sector - also from Germany.
Hesse will make use of the opening clause (Art. 72 Para. 3 S. 1 No. 7 GG) and introduce an area factor procedure.
After more than a year of deadlock, the governing parties have agreed on new regulations on share deals in the real estate transfer tax.
Debtors of a foreign royalty payment are generally obliged to withhold tax. Up to now, the exemption procedure offered relief in this respect. This is now reformed by the new § 50c EStG.
Until now, the crediting of foreign withholding tax was only known in connection with income or corporation tax. The FG Hessen now affirms this possibility also for trade tax.
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