German tax law is very complex, and many companies face difficulties with its interpretation and application. If you are a German company and aren’t sure about the laws and regulations that apply to your business, specialized Steuerberatungskanzlei and tax advisors can help you. They prepare tax returns and review the tax implications of buying and selling businesses in Germany, whether you are from the US or other countries. They handle German corporate tax returns, audits, and inquiries from government agencies and private tax firms. Working in Germany makes sense as a valuable investment whether you are an investor, entrepreneur, or an overseas German citizen. The most important thing you can do for your business is to learn about your area’s tax rates. That way, you can make sure you are paying the right amount of tax and making the most of your business in Germany. If you want to know more, please get in touch with the tax attorneys in the German system.
What are the services that the Steuerberatungskanzlei provides?
- Tax services for corporates – Taxation for businesses in Germany breaks down into two categories: corporate income taxes and individual entrepreneur and partnership income taxes. Businesses pay a local tax, the business profit tax, in addition to their regular income tax. Relocating a German company to a low-tax region can save the company a lot of money since it is a local tax. Value-added tax (VAT), a sales tax equivalent to the sales taxes in other countries like the United States, is applied to goods and services in Germany, with a few exceptions. Other business taxes include-
- Payroll services (e.g. payroll accounting, transmitting monthly wages-payment calculation, etc.) are examples of payroll accounting.
- Tax optimization of corporate and M&A transactions (acquisitions, restructuring, transformation, etc.), including tax due diligence.
- Tax office and German tax court litigation can be represented.
- International tax services – Difficulty with transfer pricing, withholding taxes, double taxation, international reporting requirements, permanent establishment taxation, IP boxes, controlled foreign companies provisions, and other international tax issues are frequently encountered by multinational firms. In addition to organising and optimising their assets for tax purposes, high-net-worth individuals must also do so. Individuals with large net worths are often invested in multinational firms, local companies, joint ventures, private foundations, and other financial vehicles spread across the world, as well as many bank accounts in different countries that hold a variety of currencies. A variety of currencies may be found in numerous bank accounts in different countries, which many of which keep a variety of currencies. Those with great wealth often have multiple homes and bases. This is why they may be taxed in more than one country. Double taxation, a reduced tax burden, and tax-efficient asset transfers to the next generation are just some of the difficulties posed by international tax issues when people and companies move across borders. In addition to addressing these concerns from a tax and political standpoint, high-net-worth individuals and businesses must do so from a tax-compliant standpoint because tax evasion has always been and will continue to be a foolish choice, particularly given the fact that national tax authorities cooperate internationally to prevent tax fraud.
- Tax services for M&A deals- Sometimes, German firms become the target of acquisitions and mergers, frequently known as M&A. However, considering Germany’s not-quite-a-tax-haven status, buyers of target companies should always work with a tax lawyer to assess their tax risks and make sure that their professional help is sought. Although M&A decisions are typically motivated by strategic objectives, the target company’s tax risks are also vital for the buyer. Every tax and tax structure issue must be weighed before making a final decision on an M&A deal. Only after considering all tax and tax structure issues can an M&A process lead to profitable investments.
- Transfer Pricing Regulations – International businesses must be aware of German transfer pricing regulations. Transfer pricing includes establishing, evaluating, documenting, and altering charges between related parties in different countries (e.g. a parent company in country A and its subsidiary in country B) for goods, services, usage of (intangible) assets, and so forth. An adequate transfer price should equal what an independent consumer would be charged (the so-called arm’s-length principle). To avoid costly mistakes, it is critical to meticulous research the correct transfer prices. It is not enough to estimate them roughly. Typically, a comprehensive study is required and conducted with professional databases that analyze competitor transactions. The tax authorities typically use the same tools. In addition to determining the correct transfer prices, comprehensive documentation is required by law, specifying how and on what grounds the corporation determined the transfer prices. The significance of transfer pricing should not be underestimated. More than 50% of all transfer pricing disputes involve the tax authorities believing that prices are too low. The resulting tax burden is immense when transfer prices are corrected across one or more countries. To avoid this, observe the rules from the beginning. Comprehensive and accurate transfer pricing documentation is critical. A transfer pricing attorney can assist you with this. Transfer pricing is also beneficial to internationally operating companies. A company may actively influence its worldwide/consolidated tax rate by following the various transfer pricing regulations. Double tax agreements, especially those related to profit allocation, are especially relevant in this respect.
- Tax Services For Nonprofit Organizations – Tax advice is particularly crucial for tax-advantaged nonprofit organizations in Germany. They must keep abreast of numerous special tax regulations at all times. Nonprofit organizations are taxed in principle but are sometimes granted reduced tax rates. However, if a nonprofit organization’s economic income and sales remain within limits set by the German tax authorities, no taxes are due. Foreign charities recognized in Germany may enjoy tax-free income from German sources, even if they do not have a physical presence in Germany.
Weihandl is a tax consultancy and Steuerberatungskanzlei that specializes in all your tax and legal concerns, from corporate and customs law to banking and finance law. They can better understand your organization by working with German tax attorneys and advisors. Working together, they can provide you with effective legal and tax advice. They provide company-tailored legal and tax advice by collaborating with their clients.