The legal framework is complex and must be carefully examined.
Work assignments abroad require systematic and careful planning. With this information, the labour, tax and social law challenges can be mastered.
This article provides an overview of the latest developments and is intended to help avoid unnecessary tax burdens and double taxation in the area of corporate taxation.
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.
Together with company representatives, the VDMA has created a signpost which contains practical implementation examples for the implementation of a Tax Compliance Management System.
As of 1.1.2020, new EU law on chain transactions was also implemented in Germany with § 3 para. 6a UStG-neu. However, the previous legal situation continues to apply to a large extent. In the following, the regulations will be presented in their entirety.
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.
Hesse will make use of the opening clause (Art. 72 Para. 3 S. 1 No. 7 GG) and introduce an area factor procedure.
After more than a year of deadlock, the governing parties have agreed on new regulations on share deals in the real estate transfer tax.
Debtors of a foreign royalty payment are generally obliged to withhold tax. Up to now, the exemption procedure offered relief in this respect. This is now reformed by the new § 50c EStG.
Until now, the crediting of foreign withholding tax was only known in connection with income or corporation tax. The FG Hessen now affirms this possibility also for trade tax.
With the turn of the year 2020/2021, a number of tax changes took effect, including depreciation, advance sales tax filing, and the Annual Tax Act.
In its second and third reading, the Bundestag today passed a law to modernise corporate tax law and the law to implement the anti-tax avoidance directive.
From contact persons to support programmes: In connection with the corona virus, the federal states have compiled regionally specific information and assistance for companies.
The Federal Ministry of Finance (BMF) has published an implementation guide on the tax recognition of employer benefits for workplace health promotion (§ 3 No. 34 EStG).
Lower Saxony will make use of the opening clause (Article 72 (3) sentence 1 no. 7 GG) and introduce an area-location model.
The standstill in German corporate tax law has long been criticised. Gradually, Germany moved from the middle of the pack among industrialised nations to the top in terms of tax burden. At the same time, structural reforms have been piled up for years. But now the government can no longer stand by and watch.
With the BMF letter dated 13.04.2021, a position is taken on the differentiation of cash and non-cash wages. In doing so, a transitional regulation is created for the treatment of cash cards and vouchers.
In the following, we have compiled and answered the basic questions on these instruments for you.
As of 3/15/2021, the Federal Ministry of Finance has updated the lists for so-called reciprocity.
The BMF has extended the transitional regulation in the letter dated 1.10.2020.
This bill introduces changes to the addition and subtraction taxation among others.
On March, 24 2021, the members of the cabinet agreed on a bill to modernise corporate income tax law (KöMoG). Among other things, this bill brings the so called option model on the way.
If you still want to claim an input tax rebate for 2020 in the UK, you need to hurry!
In the case of work assignments within Europe, the three completely different topics of "reporting obligations", "social law: A1 certificate" and "labour law: posting directive" are increasingly coming into focus.
A temporary change of place of employment due to the current pandemic may have an impact on the previously established social security law
Overview of double taxation agreements and wage tax exemption for stays abroad
On 19 January 2021, the Conference of Minister Presidents not only took up the extension of the lockdown, but also a tax policy project from the coalition agreement.
In the view of the VDMA, the regulations on loss carryback contained in the Third Corona Tax Assistance Act should be improved. VDMA Vice President Bertram Kawlath explains on the second and third reading of the law in the Bundestag:
Export declarations will need to be prepared for supplies to the UK from January 2021.
Minimum time a medium-sized business spends calculating its tax liability, filing tax returns, and remitting taxes
On 3 December 2020, the Federal Ministry of Finance (BMF) published Administrative Principles 2020 (VG 2020) on obligations to cooperate and estimation of tax bases.
It was not until 1.1.2020 that the wage tax withholding obligation for foreign employers in Austria was tightened. This has now been largely reversed - with retroactive effect from 1.1.2020.
Germany has concluded social security agreements with a large number of countries outside the EU, which regulate the retention of the German social security system.
Industries such as machinery and equipment manufacturing must make risky investments to maintain their competitiveness. In addition, they typically have a business that is subject to strong cyclical fluctuations. Therefore, it is imperative to have adequate ways to offset profits and losses, even across periods. Operating losses must not simply be allowed to lapse, but must be able to be offset in full against profits from good years.
Sufficient liquidity is currently a key prerequisite for companies to weather the Corona crisis well and build on past successes. Despite the extensive aid provided by the German government, there is still a lack of adequate loss offsetting possibilities.
The Tax Incentives for Research and Development Act (Forschungszulagengesetz) and the federal government offer many opportunities to receive funding.
Companies from all over Europe are involved in the VDMA. Mechanical engineering is a familiar term to many, but what distinguishes plant engineering? The following pages show the diversity of the plant engineering sectors, the complexity of the project business, but also forward-looking solutions to meet the challenges of the time.
The most important documents can be found here.
Taxation of technical services: Tax law information and practical experience from the circle of members
According to several surveys, the payment discipline of Slovak entrepreneurs and customers is one of the worst in the EU. At the same time, the crisis (Covid-19) affects the payment discipline and liquidity of entrepreneurs very significantly.
The protocol to the free trade agreement contains regulations (Social Security Coordination - SSC) which guarantee the cross-border mobility of employees.
Back in March 2020, various tax measures were taken to secure liquidity. After these measures were limited until the end of 2020, the BMF has granted an extension of these measures.
The governing parties have been arguing for a long time about the further content of the Annual Tax Act 2020. The coalition has also agreed on amendments to the Research Allowance Act (FZulG). The law was passed by the Bundesrat on December 18, 2020.
In a letter, VDMA President Karl Haeusgen has addressed the Minister Presidents of the German states and, on behalf of the VDMA, is once again calling for improvements to the tax loss carryback.
Bavaria will make use of the opening clause (Art. 72 para. 3 sentence 1 no. 7 GG) and introduce an area model. To this end, the state government has now presented a draft bill and also provided initial details in its press release of 8 December 2020. Bavaria thus deviates from the federal model
Since June of this year, the possibilitie exists to pay out benefits in connection with the Corona crisis (also known as the Corona special payment or Corona bonus) to employees tax-free up to an amount of EUR 1,500. On the occasion of the planned extension of this regulation until the end of June 2021, we would like to briefly present the key points of this regulation.
The Research Subsidy Act came into force on 1 January 2020. Find out here who benefits from the new tax incentive, what you need to consider and how the VDMA supports you with this form of funding.
Sufficient liquidity is currently a key prerequisite for companies to weather the Corona crisis well and build on past successes. Despite the extensive aid provided by the German government, there is still a lack of adequate loss offsetting possibilities.
