We have been a member of DFK International - a global association of independent Auditors, Tax Consultants and Business Consultants with more than 300 offices - for almost 30 years. This enables us to advise you and act as your contact point concerning inbound cases (foreigners investing in Germany) as well as outbound cases (Germans investing abroad). This is done on a cross-sector basis, for all legal forms and all tax forms in Germany.
Our spectrum in international tax law covers the Foreign Tax Relations Act, transfer prices, permanent establishments, inheritance and gift tax, European law, limited liability to tax, corporate transactions, procedural law, transformation law and the taxation of employees when posted abroad by their employer.
Our global approach ensures that changes to general conditions (market, laws etc.) are recognised quickly, and that effective measures can be taken where necessary.
We support you in all tax and business management matters. We also coordinate services provided not by us but by our network partners.
The importance of value added tax in cross-border business transactions has increased further. This must be seen above all against the background of the number of regulations and the increased formalism. It starts with the so-called reverse charge process and ends with the preconditions for an intra-Community delivery (e.g. entry certificate). As long as companies are required to invoice showing value added tax at national level, there will be a high risk in cases of doubt - on both sides. Given a tax rate of 19%, the risk is almost one fifth of turnover - not income. With an approx. 46% share in tax revenue in Germany, value added tax is increasingly the focus of tax audits, and frequently results in painful additional taxes.
Sufficient reason to have this tax form investigated from both a national and an international perspective.
The subject of "transfer prices" is increasingly the focus of government tax audits. The Annual Tax Act 2013 extended the area of application of the transfer price principles to also include business relationships between a German company and its foreign permanent establishments. As a result, the permanent establishment now has to be treated as an autonomous and independent company. In other respects, the Federal Fiscal Court decided in 2013 that the documentation obligations for transfer prices, as regulated by German law, comply with European law.
Klaus Schlüter: Tax Consultant and specialist consultant for international tax law