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.

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.

With the BMF letter dated September 11, 2023, the BMF extends the submission deadlines for declarations pursuant to Section 18 AStG. However, this only applies to non-advised cases.

The upcoming Growth Opportunities Act is to introduce an investment premium for certain climate protection investments. With the resolution of the government draft, the first details of the content of the planned regulation are now known.

Most recently, the passage of the planned Growth Opportunities Act had to be postponed due to the veto of the Federal Minister for Family Affairs. Now the government has finally got the bill off the ground. We provide an initial overview

On the occasion of the damage caused by past severe weather events, the state government in Bavaria is now responding with tax support measures for the three affected counties.

In a recently published decision, the second senate of the Federal Constitutional Court comments on a judge's submission regarding a possible unconstitutionality of pension provisions and considers them inadmissible.

During its meeting on August 16, 2023, the German government approved the government draft for the implementation of the global minimum tax in Germany.

On the occasion of today's postponement of the cabinet decision on the Growth Opportunities Act, Dr. Ralph Wiechers, Member of the Executive Board and Head of the VDMA's Tax Department, explains:

Germany needs reforms. The draft Growth Opportunities Act is an important step in this direction, which must work across the board in terms of investment conditions.

The Federal Central Tax Office (BZSt) is currently informing the associations about upcoming changes in the tax withholding procedure according to § 50a EStG.

Presidential Decree No. 585 of August 8, 2023 suspended 38 double taxation treaties with unfriendly states, including Germany.

Attention Europe enthusiasts! With our new web seminar series "EU Bubble talks - 30 minutes insights from Brussels" we take a look behind the scenes of European politics and take you with us.

On July 17, 2023, the German Federal Ministry of Finance presented a draft bill of the so-called Growth Opportunities Act, which, among other things, provides for a new regulation of the deductibility of interest (as of January 1, 2024).

In July, the German Federal Ministry of Finance presented the draft bill for a law to strengthen growth opportunities, investment and innovation as well as tax simplification and tax fairness (WtChancenG).

The German Finance Minister is taking the right approach with his proposals on investment and innovation conditions: Investment premium, expanded research allowance or improved loss offsetting will help medium-sized companies in particular

The Tax Erfas of the regional associations of the VDMA have a long tradition. Also in the second half of 2023 we will offer these events again. we give you a little preview, when and where!

In order to cope with the new world of work, a multilateral framework agreement will allow more flexible -deviating from the conflict of laws- regulations for teleworkers from July 01, 2023.

The BMF published its revised Administrative Principles Transfer Pricing 2023 (VG VP 2023) on June 6, 2023.

The tax authorities have published new identical state decrees on Section 6a of the Real Estate Transfer Tax Act (GrEStG). The amendments take into account, among other things, recent case law of the BFH.

In April, the German Federal Ministry of Finance presented a discussion proposal to implement mandatory electronic invoicing for domestic B2B sales. This proposal follows an agreement of the governing parties in the coalition agreement. Based on electronic billing, an electronic reporting procedure of invoice data is to be implemented at a later stage in order to combat VAT fraud.

The sales tax handling of plant construction projects in the European states is very complex. Since the EU VAT Directive leaves many options open to the states, the VAT regulations vary greatly from state to state.

At their spring meeting in Bruchsal, Germany, industry representatives organized in the VDMA Spare Parts Working Group discussed the potential consequences of the so-called plastic tax.

In a letter dated May 2021, the Federal Ministry of Finance published new regulations for an insurance tax liability of warranty extensions in the wake of a BFH ruling. The VDMA and other associations subsequently lobbied for clarifications and achieved a postponement of the regulations until Jan. 1, 2023.

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A high level of down payments received can be a tax problem in inheritance tax when there is a change of generations. The BFH has now issued its first ruling.

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.

In fiscal year 2023/2024 (01/04/2023 - 31/03/2024), India will increase the domestic withholding tax rate on remuneration for technical services and royalties from 10% to 20% plus Surcharge and Health Education Cess.

The event offered participants the opportunity to learn about and exchange information on current developments in tax law.

VDMA is campaigning for less bureaucracy in work assignments in Europe. An overview of the facts and figures shows that there is still a long way to go before the Internal Market runs smoothly.

Rejection of false desires is called for: The high tax revenues of the public coffers must not be channeled into higher social spending; instead, more tax funds are needed for better investment conditions in Germany.

VDMA supports a study on "Tax Compliance and Transfer Pricing" by the University of Paderborn which is relevant for the practice and asks for your support until May 31, 2023.

The mechanical and plant engineering sector is particularly challenged by the transformation: It must not only provide the technological solutions, but also invest in new components and plants itself so that Germany can master the energy transition and digitalization. The intention of the Federal Ministry of Finance to focus on investment-friendly framework conditions is correct in approach. The announcement must be followed by concrete reform steps in tax law.

Brazil will in the future follow the OECD Transfer Pricing Guidelines, thus turning away from the previous special regime.

The steep rise in interest rates in recent months has direct consequences for intergroup transfer prices and will be the focus of future tax audits.

The BMF has published its first discussion draft for the national implementation of the global minimum tax in Germany.

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.