DAS THEMENSPEKTRUM DES VDMA - DAS THEMENSPEKTRUM DES VDMA - DAS THEMENSPEKTRUM DES VDMA -
Taxes
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.
Related content
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.
The brochure "Orientation guide in the legal jungle" deals with the legal framework.
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") of the VDMA National Association North and the AG Marine Equipment and Systems. Participation in these events is reserved for our members.
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.
The EU Administrative Commission has agreed on the adoption of a new directive, with a transitional period of the special pandemic-related regulations until December 31, 2022.
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.
Those who have warranty extensions in their portfolio will soon become insurance providers in a certain sense.
The unanimity necessary for the adoption of the directive failed due to the veto of Poland, Sweden, Malta and Estonia.
The fourth Corona Tax Relief Act is intended to bring about a permanent extension of the loss carryback and an extension of declining balance depreciation. The coalition is rightly continuing important aid measures, but they are not ambitious enough.
Reverse charge procedure
The willingness to help in Germany for the people affected by the war in Ukraine seems to be great. For companies and workforces willing to help, there is a good aid instrument: the labor donation.
Due to their high export quota the companies of the VDMA Large Industrial Plant Manufacturers' Group are particularly affected by double taxation.
On the occasion of the humanitarian catastrophe caused by Russia's invasion of Ukraine, lawmakers are now responding with tax support measures.
What seems easy to implement at first glance turns into a legal bureaucratic monster on closer inspection.
With the letter dated 03.03.2022, the BMF updates the administrative principles for the wage tax treatment of the provision of a company car to employees.
After the Federal Constitutional Court declared the regulations for interest on tax arrears and refunds unconstitutional with regard to the interest rate, the Federal Ministry of Finance (BMF) has now presented an initial draft for a possible new regulation.
On Feb. 22, 2022, the German Federal Ministry of Finance published some clarifications on the new definition of useful lives for computer hardware and software.
The last Annual Tax Act 2020 made many changes to wage tax in particular. One change concerned the monthly exemption limit for benefits in kind, which will now increase from 2022.
In Berlin - in line with the coalition agreement - there are intensive discussions about an investment premium or super depreciation, which should be limited to goods that particularly serve climate protection and digitization.
The supreme tax authorities of the German states have agreed on equity measures regarding corona-related effects on the payroll rule. However, these do little for the mechanical engineering sector.
These tax aspects have to be considered for a work assignment in the USA.
On January 20, 2022, the OECD published the 2022 version of the OECD Transfer Pricing Guidelines (TPG).
Coming soon
To the point
VDMA Focus-Topic
Events
As a result of Russia's war of aggression in Ukraine, which is contrary to international law, energy prices have soared to unprecedented heights. The German government is trying to mitigate the dramatic impact on business and private households with extensive energy cost relief packages. For companies, there is a need for action on a variety of fronts. In addition to considering emergency aid, the focus is on investments in climate technologies and the switch to alternative energy sources
Take advantage of our introduction and Q&A session online.
The delivery on seagoing vessels is a complex issue, where aspects of customs, logistics and tax law have to be considered.
Please note this date, more details will follow
Details about the event and agenda will follow
Further VDMA Services
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.
exklusiv
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.
exklusiv
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).
exklusiv
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.
Committees
