Taxes - vdma.org

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.

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.

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.

For several years, the tax authorities have been trying to develop solutions within the framework of a federal-state working group that will lead to an acceleration of external tax audits. Now the measures are available in the form of a bill, of which we would like to give a brief overview.

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.

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.

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

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.

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

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.

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.

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

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

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.

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.

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.

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.

From export financing to China and trade with third countries - VDMA wrote a letter outlining our main trade activities in 2022.

In June 2022, the EU Administrative Commission had agreed on the adoption of a "No Impact Policy" with a transitional period of the special pandemic-related regulations until December 31, 2022. This has now been extended to June 30, 2023.

On December 12, 2022, the Czech Presidency of the Council of the European Union announced that a political agreement had been reached by all EU member states regarding the introduction of a global minimum taxation of 15 percent ("Pillar 2").

After the possibility of paying the tax-free inflation compensation lump sum was included in the law (§ 3 No. 11c EStG), the Federal Ministry of Finance (BMF) has now published an FAQ to clarify individual questions.

The many data delivery obligations in tax law impose heavy bureaucratic burdens on companies. That's why digitization must also bring tangible benefits to companies at the same time. Focusing only on combating fraud is not enough.

"Mobile working abroad" has become a top issue for companies that want to be attractive to qualified specialists and managers who live outside Germany. But what needs to be taken into account?

The BMF has published the application letter "Tax treatment of travel expenses and travel allowances for business and work-related trips abroad from January 1, 2023".

Countries such as the United Kingdom and the Netherlands have already taken the first steps towards national implementation of Pillar II, and other countries are in the starting blocks.

At its meeting on November 2, 2022, the federal cabinet approved the new reports on tax progression and subsistence level and agreed on adjustments to the Inflation Compensation Act already before parliament.

In the course of commenting on the Annual Tax Act 2022, the Economic Committee of the Bundesrat calls for a reduction of the corporate tax burden to 25 percent and an unlimited declining balance depreciation. This takes up central VDMA positions.

Temporary reduction of the VAT rate for supplies of gas through the natural gas network and heat through a heat network in the period from October 1, 2022 to March 31, 2024.

The event took place in mid-October in Präsenz. Participants learned about everything from risk-free invoicing for work and assembly deliveries to current ECJ case law and triangular transactions.

Conference of Finance Ministers agrees on extension of deadline for submission of property tax value declarations

The BMF has published a letter with relief for deferral requests, enforcement protection and adjustments of advance payments.

The German government has agreed on a draft annual tax law and introduced it into the parliamentary procedure. It also includes some regulations for wage and employee taxation.

An initiative to completely abolish so-called register cases already failed in 2020. As part of the current Annual Tax Act, the German government is now making a renewed attempt to remove most cases from the focus of withholding tax.

After the federal government has already agreed on various measures to reform and accelerate the external tax audit, the coalition has now surprisingly launched another innovation and lays the first foundation stone of a system audit

The Federal Minister of Finance wants to dismantle bracket creep. This reduction is a question of justice and long overdue. The relief must also be spread over the entire tax scale.

List of planned experience exchange events ("ERFA") from the North, VDMA National Association North and the AG Marine Equipment and Systems (MES).

The German Federal Ministry of Finance (BMF) has published the brochure "The most important taxes in international comparison".

The German Federal Ministry of Finance (BMF) plans to shorten the submission deadline.

On 05.07.2022, the BMF published the draft bill of a new function shifting regulation ("FVerlV-E").

The BMF letter contains regulations for the exemption of wages for certain foreign activities in countries with which there is no double taxation agreement.

Employees in the machinery and plant engineering sector deserve to receive the right net from their gross while their benefits remain unchanged. The budget deliberations must keep this in mind and reduce the cold progression. The income tariff must be defused.

The German Federal Ministry of Finance is again extending the simplification rules for the income tax treatment of so-called register cases. This will now continue to apply until 2023.

Once again, the BFH has dealt with the trade tax treatment of trade fair costs in a decision and ruled that these are not necessarily subject to trade tax addition. The BFH thus continues its case law.

After the Federal Constitutional Court declared the regulations for interest on tax arrears and refunds to be unconstitutional with regard to the interest rate, the Bundestag has now passed a new regulation on 23.07.22. The new regulation is based on the following principles

The debate about so-called excess profits and their taxation is misguided. Excess profits cannot be defined in concrete terms or delimited for tax purposes. Their levying would thus be completely arbitrary.

The event discussed the energy transformation and digitalization, which are increasingly pushing into the industry, with their consequences for German and international tax law.

With the letter dated 30.05.2022, the BMF comments on the treatment of tax-free travel allowances in connection with the 9 Euro Ticket.

In a letter dated 22.2.2022, the Federal Ministry of Finance has attempted to answer the questions of the associations regarding the regulation from 2021.

In the expert hearing of the Bundestag Finance Committee, the VDMA called for significant improvements in the context of the deliberations for the 4th Corona Tax Assistance Act.The draft law contains two provisions that are very central for the machinery and plant engineering industry: Depreciation conditions and loss offsetting.

The planned tax aid measures to further deal with the Corona crisis are a step in the right direction. However, the period for carrying out a loss carryback should be extended to five years and declining balance depreciation should be implemented permanently.