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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.

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Related content
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.

Federal government adopts new regulations to speed up tax field audits

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.

Mobile working abroad

The brochure "Orientation guide in the legal jungle" deals with the legal framework.

Meals per diems for trips abroad as of 01.01.2023

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".

The implementation of Pillar II begins!

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.

Cabinet agrees on amendments to abolish cold progression

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.

Economics Committee of the Bundesrat advocates reduced corporate tax burden

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

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.

Tax law experts from VDMA member companies met in Vienna

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.

Extension of the deadline for submitting the property tax value declaration

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

Tax equity measures due to increased energy prices

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

Changes in income tax: Home office flat rate, workroom and pension expenses

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.

Federal government plans to abolish register cases as far as possible

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.

A real novelty: the tax system audit

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

Abolish bracket creep as soon as possible

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.

Our events

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.

International tax comparison

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

Transfer pricing documentation

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

Transfer of Functions Ordinance to be amended

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

Expatriation decree revised

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

Coordinating social security law

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.

Reduce cold progression in a timely manner

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.

Renewed extension of the simplification rule for so-called register cases

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.

New BFH case law on the trade tax addition of trade fair costs

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.

New regulation of the tax interest rate

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

Debate on excess profits is absurd

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.

Innovations in tax law

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

BMF letter on the wage tax treatment of the "9 Euro Ticket

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.

BMF again comments on one-year depreciation of computer hardware and software

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.

Corona Tax Relief Act: Don't stop halfway!

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.

Planned Corona tax aids fall short in key respects

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.

Warranty extensions soon to be subject to insurance tax

Those who have warranty extensions in their portfolio will soon become insurance providers in a certain sense.

Pillar 2 - No agreement in ECOFIN

The unanimity necessary for the adoption of the directive failed due to the veto of Poland, Sweden, Malta and Estonia.

Extend loss carryback to five years!

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.

Slovenia

Reverse charge procedure

Quick help for Ukraine: The labor donation

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.

VDMA Large Plant Manufacturers: Reduce double taxation risk!

Due to their high export quota the companies of the VDMA Large Industrial Plant Manufacturers' Group are particularly affected by double taxation.

Tax support measures for victims of the Ukrainian war

On the occasion of the humanitarian catastrophe caused by Russia's invasion of Ukraine, lawmakers are now responding with tax support measures.

Mobile working abroad - the "second one

What seems easy to implement at first glance turns into a legal bureaucratic monster on closer inspection.

New BMF letter on the provision of company cars to employees

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.

Draft bill on the new regulation of the tax interest rate

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.

Depreciation of computer hardware and software

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.

New monthly exemption limit for tax-free benefits in kind as of 01.01.2022

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.

For a permanent declining balance depreciation

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.

Inheritance tax equity measures are insufficient for the mechanical engineering industry

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.

USA: Taxation of posted employees

These tax aspects have to be considered for a work assignment in the USA.

OECD Transfer Pricing Guidelines 2022

On January 20, 2022, the OECD published the 2022 version of the OECD Transfer Pricing Guidelines (TPG).

DTA Overview 2012

Coming soon

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VDMA Infoportal Ukraine War
The machinery and plant engineering sector condemns the Russian invasion of Ukraine in the strongest possible terms. The VDMA will support its member companies in word and deed in order to master the many challenges that are now arising.
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.
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.
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.
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.
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?
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.
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.

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

218

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

Summary
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.

VDMA Focus-Topic

VDMA Focus-Topic

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Technological Sovereignty

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The United States

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Events

Mon. 05.12.22 Mon. 05.12.22

exclusive

  • Energy Tax

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

Places available

Fri. 09.12.22 Fri. 09.12.22

exclusive

  • Tax Policy Germany
  • Research, Innovation

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

Places available

Fri. 09.12.22 Fri. 09.12.22

  • Customs Regulations
  • Steuern...

The delivery on seagoing vessels is a complex issue, where aspects of customs, logistics and tax law have to be considered.

The delivery on seagoing vessels is a complex issue, where aspects of customs, logistics and tax law have to be considered.

Wed. 25.01.23 Wed. 25.01.23

  • Corporate Finance
  • Export Finance

Please note this date, more details will follow

Places available

Tue. 07.03.23 Tue. 07.03.23

  • International Tax Law

Details about the event and agenda will follow

Places available

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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.

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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.

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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).

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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.

Ausschüsse

Committees
Tax Committee
Tax Committee
In the Tax Committee, mainly heads of the tax/finance departments from the member companies discuss pending legislative projects and shape the VDMA's tax policy work

Chair

Petra Klingenstein

Hitachi Energy Germany AG

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Vorteilskommunikation

Benefits for you as a member

Largest industry network in Europe

Around 3,500 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 mechanical and plant engineering 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.