Debunking the tax and legal myths of doing business in Germany
-
Upload
investbavariaus -
Category
Business
-
view
97 -
download
1
Transcript of Debunking the tax and legal myths of doing business in Germany
![Page 1: Debunking the tax and legal myths of doing business in Germany](https://reader036.fdocuments.us/reader036/viewer/2022092622/587a9d801a28ab09758b63df/html5/thumbnails/1.jpg)
Debunking the Tax and Legal Myths of
Doing Business in Germany
Thursday, April 28, 2016Wingtip Club
550 Montgomery Street
San Francisco, CA 94111
![Page 2: Debunking the tax and legal myths of doing business in Germany](https://reader036.fdocuments.us/reader036/viewer/2022092622/587a9d801a28ab09758b63df/html5/thumbnails/2.jpg)
Joerg Kemkes, Managing Director
Rueter Partner, San Francisco
Presenters
![Page 3: Debunking the tax and legal myths of doing business in Germany](https://reader036.fdocuments.us/reader036/viewer/2022092622/587a9d801a28ab09758b63df/html5/thumbnails/3.jpg)
3 Lower Corporate Tax Burden
Reduction of average tax burden for corporations
from 38.7% to 29.8%39.6
39.5
38.7
34.4
34,0
31.4
30,0
29.8
26,0
25,0
25,0
24,0
20.6
19,0
19,0
12.5
- 10.0 20.0 30.0 40.0 50.0
USA
Japan
Germany (till 2007)
France
Belgium
Italy
Spain
Germany
UK
Denmark
Netherlands
Greece
Hungary
Poland
Czech Republic
Irland
![Page 4: Debunking the tax and legal myths of doing business in Germany](https://reader036.fdocuments.us/reader036/viewer/2022092622/587a9d801a28ab09758b63df/html5/thumbnails/4.jpg)
4 GmbH Taxation
Trade tax (depends on location)
• about 14% of taxable income
Corporate tax
• 15%, solidarity surcharge 5.5%
![Page 5: Debunking the tax and legal myths of doing business in Germany](https://reader036.fdocuments.us/reader036/viewer/2022092622/587a9d801a28ab09758b63df/html5/thumbnails/5.jpg)
5 VAT Impact
VAT Impact for Companies is zero, The VAT is only a burden for the ultimate consumer
Sales tax - 19%, 7%, 0% (non-taxable or tax-free)
Input VAT – fully reclaimable with VAT return
![Page 6: Debunking the tax and legal myths of doing business in Germany](https://reader036.fdocuments.us/reader036/viewer/2022092622/587a9d801a28ab09758b63df/html5/thumbnails/6.jpg)
6 Employment Regulations
10 or less employees: Employment Protection Act
does not apply
More than 10:
• Employment Protection Act does usually not apply for
first 6 months of employment
• Shorter dismissal period in the first 6 months if agreed in
the contract
• Personal reasons - long sickness
• Attitude related reasons
• Operational reasons – Loss in Revenue, Restructuring,
Shutdown
![Page 7: Debunking the tax and legal myths of doing business in Germany](https://reader036.fdocuments.us/reader036/viewer/2022092622/587a9d801a28ab09758b63df/html5/thumbnails/7.jpg)
7 Challenges
Travel Expenses
Identifying Taxable Benefits
Customer and Internal Events
Gifts to clients and employees
Fixed Assets
Transfer Price Study
Interest on Intercompany Account
![Page 8: Debunking the tax and legal myths of doing business in Germany](https://reader036.fdocuments.us/reader036/viewer/2022092622/587a9d801a28ab09758b63df/html5/thumbnails/8.jpg)
8 Contact
Rueter Partner San Francisco101 Montgomery Street, Suite 2050San Francisco, CA 94104U.S.A.
www.rueterpartner.de
Joerg Kemkes
D +1 415 248 7815M+1 415 601 2053E: [email protected]