On the occasion of the humanitarian catastrophe caused by Russia's invasion of Ukraine, lawmakers are now responding with tax support measures.
The brochure "Orientation guide in the legal jungle" deals with the legal framework.
Deliveries of mechanical engineering are regularly deliveries of work and materials. However, the turnover tax has its own definitions which deviate from the civil law approach. The regulations are examined in more detail below.
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.
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
The BFH reaffirms the priority application of the price comparison method.
Traditionally at the beginning of the year, the VDMA revises and updates its economic policy positions.
With the letter dated 05.11.2021, the BMF recasts the administrative principles, in particular regarding private use.
Corona has influenced international export finance, but there are still changes needed, says Ralph Nikol of Siemens Financial Services in an interview with Dr. Susanne Engelbach, VDMA.
Study on fiscal research promotion - mechanical engineering submits the most applications and sees great potential
The BMF letter dated January 5, 2022 is issued against the background of the provision of Section 8 (4) of the German Income Tax Act (EStG), which has been in force since the 2020 assessment period, and is intended to create legal certainty for the assessment periods up to 2019.
The extension of the tax loss carry-back announced by the Minister of Finance is a central demand of the VDMA. However, the planned period of two preceding years does not go far enough.
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.
As of 1.1.2020, the EU member states have introduced a harmonised simplification regulation for consignment warehouses.
Expenses of cloud services in the trade tax addition? A critical look at an audit area in the tax audit.
Description
If a company plans to operate in several states, it is important to note that each of the 50 states has its own tax jurisdiction.
Back in January 2021, the various tax liquidity measures from 2020 were extended. The BMF is now extending these measures again.
Under the heading "Dare more progress - Alliance for freedom, justice and sustainability", the SPD, BÜNDNIS 90/DIE GRÜNEN and FDP presented the draft of their coalition agreement for the legislative period 2021-2025 on 24 November 2021. Below you will find an overview of the plans for corporate tax law and their evaluation.
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.
This year, the Federal Ministry of Finance has issued a number of administrative directives that are of key importance to the mechanical and plant engineering sector.
On 11th November 2021 the Federal Ministry of Finance presented the long-awaited letter with detailed regulations on the research allowance.
The additional tax revenues confirm the course set by the traffic light government in the exploratory talks of not raising taxes and adhering to the debt brake.
In the period from 10.12.2019 to 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
Events
Find out about the tax issues you should consider for a successful work assignment in the US.
Test
Since January 2020, there has been a new funding instrument, the Tax Research Grant, in Germany. Researching companies are entitled to an allowance of 25 percent of their wage costs for research staff. Contract research is also eligible for funding. The assessment base is capped at EUR 4 million per company
At the web event on November 24, 2022, Dr. Marion Hohmann-Viol will answer your questions about assembly operations in Switzerland.
exklusiv
exklusiv
exklusiv
