We establish a safe course

International tax advice

Foreign companies wishing to establish a branch in Germany are faced with a considerable challenge. In addition to the particular qualities of the German market in the relevant field of business, the particular features of German and international tax law must also be considered. We can make your launch of your company on the German market considerably easier in this regard. We also ensure that the tax burden in Germany and in the home country is minimised and double taxation is avoided. To this end, we also cooperate with several tax advisers in other EU countries. We can also offer you advice in the native language in many countries.

Account should also be taken of the fact that in business relations between German branches or subsidiary companies and foreign affiliated companies, documentation of transactions with these companies has become considerably stricter during the last few years. Since 30.06.20013, § 90 of the German fiscal code requires that all German companies that purchase or sell goods with a value in excess of EURO 5 million or other services with a value in excess of EURO 500,000 from/to foreign affiliated entities must document these transactions in considerable detail.

Our services

a) Ongoing advisory services.

We offer foreign companies with activities in Germany comprehensive advice on establishing subsidiary companies or permanent establishments, starting with the selection of a suitable legal form for the company and the calculation of the tax burden at company and shareholder level. We also provide support in properly demarcating profits from the parent company in order to avoid subsequent tax demands in Germany or from the parent company’s home country.

Our services also include advice on the tax rules to be complied with on cross-border deliveries and services as well as on the preparation and submission of applications required in this connection, such as for example exemption from withholding taxes and input tax reimbursement. In this way, we ensure that the tax reliefs and refunds established in double taxation agreements or in EU legislation are granted and are not forfeited due to the expiry of deadlines for application for refunds.

b) Documenting business relations with foreign affiliated entities.

If required, we also prepare the documentation required by law in order to document business relationships with foreign affiliated companies in compliance with the provisions of the Ordinance on Recording the Demarcation of profit that have to be applied here. Due to our experience in fiscal audits of companies operating abroad, we have precise knowledge of the legal requirements that have to be observed in this connection.

c) Tax returns for employees assigned abroad.

We offer to prepare the German tax return of employees of the German subsidiary company assigned to Germany from a foreign country that can sometimes be extremely complex due to income earned in Germany and in the home country. We prepare these returns with considerable care so that all applicable tax benefits are used. Moreover, the assessment of additional tax demands and additional mark-ups at a later date due to incomplete data is avoided by considering all relevant tax aspects in Germany.

Our skills