The post How is a Permanent Establishment Defined in Germany? appeared first on AGN International.
]]>Permanent Establishment and Fixed Business Facility for Service Providers in Germany: A foreign company operating in Germany must be assessed from a tax perspective to decide whether the establishment is a ‘permanent establishment’ or not. The existence of a permanent establishment has various consequences, especially Germany’s right to tax the income attributable to the permanent establishment in Germany.
According to the German law, a permanent establishment in Germany has to meet the following requirements:
1. A fixed place of business or permanent establishment of a certain duration;
2. Over which the entrepreneur has not only temporary power of disposal;
3. And which serves the activity of the company.
There must, therefore, be a certain rootedness of the activity in Germany. These requirements are more or less decisive under treaty law.
Decision of the Federal Fiscal Court
On June 7, 2023, the German Federal Fiscal Court (Bundesfinanzhof) issued an interesting judgment – A decision by the Federal Fiscal Court ruled that a UK resident individual’s use of a designated locker for personal clothing and items in connection with the provision of aircraft maintenance services at a German airport, even if not used to store tools or other business equipment, was a sufficient nexus to create a permanent establishment under domestic legislation and the Germany-UK tax treaty.
Case Overview:
The case in question was an engineer from the UK carrying out maintenance work on an aircraft at an airport site in Germany. The maintenance work was carried out under a contract between the engineer and A GmbH (owner of the airport site).
As part of his work on the airport premises, the engineer had a lockable locker with a name tag to store his private belongings. The documentation of the work carried out on the aircraft was recorded in the aircraft’s log book in a room equipped with computers, which the engineer was allowed to use.
The dispute was whether the use of a locker in an airport’s common areas is sufficient to assume that the activity is rooted in Germany to a certain extent. At the entrance to the building, the employee had to undergo a security check, after which he could move freely around the airport premises.
According to the judgment, the requirements for a permanent establishment are met if a service provider (in the judgment: an aircraft mechanic) was provided with restricted personal use
structures at location-related business facilities (in the judgment: locker and safety deposit box in common rooms on the airport premises) in connection with the provision of the service (in the ruling: maintenance work on aircraft).
The recent judgement shows that German case law interprets a strict requirement of how a permanent establishment’s activities are defined in Germany. In practice, it will therefore be even more important in the future that the requirements for a permanent establishment are checked in detail for activities in Germany.
In our experience, these disclosure requirements have not been given the attention they require within the accounting profession. They now need to be considered as a matter of course when dealing with cross-border issues and even more so when it involves an EU Member State when the additional Hallmarks of the EU Directive will also need to be considered.
Christine Ries
Tax Consultant | Certified Advisor in International Taxation
WirtschaftsTreuhand GmbH
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]]>The post New Regulations for Transfer Pricing Documentation in Germany appeared first on AGN International.
]]>In Germany, the EU Directive DAC7 has been implemented and included as part of the German tax law. How could the shortened submission deadlines and extended penalties affect you?
In general, transfer pricing documentation must be prepared in accordance with the German Regulations Regarding the Documentation of Profit Allocations (GAufzV).
There is only relief for smaller companies for IC-deliveries up to EUR 6 million and for other IC- services (especially services) up to EUR 0.6 million, which in each case, is related to the group of companies.
Present Regulations:
- Submission within the framework of the external audit after a request by the tax audit.
- Deadline: 60 days for ordinary IC-business transactions and 30 days for extraordinary IC-business transactions.
- Late submission: Surcharge of at least EUR 100 per day up to a maximum of EUR 1 million if the deadline is not met. If the documentation is not submitted on time or if the documentation is unusable, a surcharge of 5 to 10 per cent of the income adjustment may be levied.
New Regulations:
- The deadline is shortened to 30 days for all IC-business transactions.
- The transfer pricing documentation can also be requested at any time, i.e. even outside of the external audit.
- Valid for tax periods beginning after 31.12.2024; also valid for taxes and tax refunds arising before 1.01.2025 and for which an audit request is announced after 31.12.2024.
As a further tightening, a duty to cooperate on the part of the taxpayer can be legally demanded by the tax audit.
Requested receipts and documents must be submitted within one month. If the request is not fulfilled within the one-month period, a “delay fee” of EUR 75 for each full calendar day of the delay in cooperation (but for a maximum of 150 calendar days and thus a maximum of EUR 11,250) is mandatory.
However, if the turnover of the audited company in an audit year amounts to at least EUR 12 million or if the consolidated turnover of the group amounts to at least EUR 120 million, the tax authority may impose further surcharges of up to EUR 25,000 per day (for a maximum of 150 days and thus a maximum of EUR 3.75 million).
Tax Committee members and AGN tax correspondents are available
to answer your questions!
If you have any questions regarding corporate income tax and transfer pricing in Germany, please contact Christine Ries.
Christine Ries
Tax Consultant | Certified Advisor in International Taxation
WirtschaftsTreuhand GmbH
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]]>The post What is a Materiality Matrix? appeared first on AGN International.
]]>Regarding sustainability, which topics are relevant can differ massively from company to company. A manufacturing company, for example, places more emphasis on occupational safety and employee health. At the same time, for a swimming pool operator, the energy balance and the elimination of chemicals for water purification are very relevant.
Material sustainability issues for a company are those that are considered important by stakeholders and the company and have a high impact on the sustainability of the company.
What are the benefits of a materiality matrix?
A materiality assessment is a useful tool to assess economic, environmental and social impacts and to make improvements for the sustainability and future viability of the company. Positive aspects of the assessment include:
- Uncovering opportunities and risks of the company
- Better information for strategic and operational decisions
- The basis for sustainability reporting
- Increased credibility and transparency
- Opportunity for process optimisation and product innovation
- The process can be the start of a valuable stakeholder dialogue
How does a materiality matrix work?
Results from the materiality assessment create a graphical representation to form a materiality matrix consisting of a two-dimensional coordinate system:
The horizontal x-axis indicates the materiality of issues for a company.
The vertical y-axis maps the materiality of topics for the company’s stakeholders.
NOTE: The Global Reporting Initiative (GRI) titles the x-axis “materiality of economic, environmental and social impacts” and the y-axis “impact on stakeholder assessments and decisions.”
The stronger the sustainability impact of an aspect for the company, the further an aspect slides to the right. The more relevant it is to stakeholders, the further up it moves.
How do you create a materiality matrix?
STEP 1: Collect the sustainability aspects of the company. e.g. High energy consumption, employee health, production conditions in the supply chain, etc.
STEP 2: Rank the sustainability aspects on the x-axis according to the company’s importance.
STEP 3: Ask employees, suppliers, producers, customers, experts, etc., which aspects are most important to them – this can be done, for example, through online surveys, workshops, discussions and interviews.
STEP 4: Arrange the sustainability aspects on the y-axis according to their importance for the stakeholders.
What does a materiality matrix look like?
You can find an example of a materiality matrix on page 20 in Tchibo’s current Sustainability Report.
Should you ever lose track of the big picture, my colleagues and I from the AGN EMEA Accounting, Auditing & Education Committee (AAEC) will be happy to help and guide you safely through the IFRS and CSR jungle. As a member of AGN International, you can use the AGN AAEC Helpline at any time or contact me by email at carsten.ernst@wirtschaftstreuhand.de or by mobile phone at +49 173 8710322.
 Carsten Ernst Managing Partner Wirtschafts Treuhand Group Stuttgart, Germany | – Expert in financial (IFRS) and sustainability (ESRS and GRI) reporting – Audit of financial and sustainability reports in accordance with ISAs – Member of the following AGN bodies: – EMEA Board of Directors (Chairman) – EMEA AAEC Accounting, Auditing and Education Committee (Member) |
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]]>The post AGN Taxpresso: Issue 4 – December 2022 appeared first on AGN International.
]]>This publication will provide you and your clients with up-to-date information on tax developments in AP countries, current corporate world issues and hot topics affecting the respective countries’ economies and global development – including insight into the potential impact this could have and annual budget announcements.
Inside this issue:
INDIA: TAXATION OF VIRTUAL DIGITAL ASSET IN INDIA
AUSTRALIA: OCTOBER 2022 AUSTRALIAN BUDGET
The post AGN Taxpresso: Issue 4 – December 2022 appeared first on AGN International.
]]>The post Forbes Magazine Names James Moore, one of America’s Best Tax and Accounting Firms for 2023! appeared first on AGN International.
]]>“What’s thrilling to us is that these rankings are based on recommendations from clients and other accounting professionals. When you succeed in that area, it’s not just because you’ve got extensive knowledge or a wide scope of skills and experience. It’s because you work with your clients as a team, forging a true partnership in their success. That’s what we aim for.”
Suzanne Forbes – Managing Partner, James Moore
Each year, Forbes collaborates with market research company Statista to survey tax and accounting professionals and their clients. The results of this survey led to this year’s list, which included 240 companies (accounting for less than 1% of the firms in the country). James Moore made the list for both tax and accounting services.
You can see the full list of firms here.
The article announcing the news also quotes Suzanne Forbes extensively in a discussion of the impact of the issues facing clients today. Click here to read the article.
James Moore, founded in 1964, is a regional firm with offices in Daytona Beach, DeLand, Gainesville, Ocala and Tallahassee, Florida. The firm specializes in providing tax, assurance, accounting and controllership, technology solutions, human resources, business advisory and wealth management services.
For more information, please contact:
Stacy Dreher
Firm Marketing Manager
5931 NW 1st Place
Gainesville, FL 32607
(352) 378‐1331
Stacy.Dreher@jmco.com
The post Forbes Magazine Names James Moore, one of America’s Best Tax and Accounting Firms for 2023! appeared first on AGN International.
]]>The post Ashfords International Recruitment Seminar Recap – Importing talent from overseas appeared first on AGN International.
]]>Recently, Ashfords held the International Recruitment Seminar, teaching businesses how to coordinate importing talent from overseas in response to the growing labour shortage in Australia. International recruitment has become more popular since the shortage of workers in Australia began. Businesses are interested in increasing their team productivity, expanding their access to skilled talent and diversifying their teams; all benefits brought by hiring international workers.
“Job vacancies have jumped 40% in 12 months, and ABS data shows there are approximately 470,000 unfilled jobs in Australia.”
What does it take to hire internationally?
After a brief foreword from Ryan Dummett – Partner at Ashfords, expert presenters delved into what it takes to hire internationally.
International Visa requirements
Amanda Tinner and Sarah Loch Wilkinson from Visa Executive presented the compliance needs of international employers, the coordination of the immigration department and how business differs from work when hiring. Amanda and Sarah’s expertise in International Visa requirements shined during the seminar as they explained the considerations businesses need to take when hiring internationally.
International Visa requirements
Brenda Garrard Forster from HRAnywhere taught attendees about the necessary legal considerations, including the Fair Work Act 2009. Brenda’s expertise in how to engage, hire, and import workers from overseas, as well as her knowledge of compliance around International Visas and laws, both international and local, captivated attendees.
Maximising and structuring taxation
Ashfords’ own Mark Vandergert spoke to attendees about how they can maximise and structure their taxation to accommodate skilled and unskilled international workers. Mark’s presentation on the key matters that financially affect employers hiring internationally taught attendees about the costs of international recruitment and what is and is not deductible by businesses.
International worker lifestyle
Lastly, Jane Save from the Save Group shared her knowledge and experience in helping international workers assimilate to the Australian lifestyle during her tenure as a restaurant owner. Jane taught attendees that after getting international workers into the country, employers should also provide assistance in the setup of accommodation, local social network, and overall well-being while working in Australia.
Contributed by:
Ashfords
Level 3, 148 Logis Boulevard,
Dandenong South VIC 3175
AUSTRALIA
www.ashfords.com.au
Phone: 03 9551 2822
Email: info@ashfords.com.au
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]]>The post AGN Connection – NA Newsletter #43 I December 2022 appeared first on AGN International.
]]>The AGN staff are grateful for the time spent with members in-person at small and large events across the continent and around the world. We are confident that 2023 will bring expanded opportunities for AGN members to spend time together in new and meaningful ways. Plus, we look forward to surprising you throughout the year as we celebrate the 45th anniversary of the organization’s founding in North America.
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]]>The post Accounting & Metaverse – by Futurist Dimitri Dimitriadis appeared first on AGN International.
]]>The accounting industry is rapidly evolving.
With any evolution, whether Darwinian or technological, those who aren’t willing to adapt will be left behind. The outlook for accounting professionals links to the economic health of the country. The Metaverse can potentially create entirely new revenue streams for accounting professionals – perhaps a new income ‘world’.
This virtual universe is still in the early development stages. While the reality of what will evolve remains to be seen, many businesses strive to understand this economy’s potential, build engaging products and offer services in virtual worlds.
Entering the Metaverse
Think about how much time your target audiences could spend in the Metaverse and calibrate your speed of attack appropriately — brands focusing on younger demographics, for example, probably don’t have the luxury of sitting out the Metaverse for long. Who are your target demographics, and what behaviours are trending with your current and prospective consumers right now that are indicators of how fast to move into the Metaverse?
Ask yourself; Does the Metaverse give your firm opportunities to not only try new things but also to accelerate your purpose or long-term goals, like sustainability, which is well suited to many applications of the Metaverse?
Benefits of the Metaverse
Almost every company has already made, or will soon make, a public commitment to sustainability-related targets, which will soon be measurable. What can you pilot in the Metaverse that allows you to test more sustainable approaches to serving your customers?
Actions for accounting professionals
Most importantly, people in accounting should start thinking about how to thoroughly educate themselves and understand the web 3.0 landscape to unleash their creativity in this new medium.
Suppose the creative palette expands dimensions in the Metaverse. In that case, we should be excited to create experiences at any point in the customer journey, from acquisition to engagement, to transaction, to customer support, which has the potential to be both spectacular and stickier than before.
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]]>The post Press Release: Reflections on AGN World Congress 2022 appeared first on AGN International.
]]>“Our conferences focus on adding value in the areas currently critical to our members. It was great to see so many of our members connecting face-to-face and taking advantage of the programme to be well-informed as they tackle the key business issues in our industry.
We covered the economic and future trends relevant to the present global talent crisis and focused on building the Next Generation of practice owners, contributing to business resilience. In smaller group sessions, members collaborated to address migrating to advisory services, outsourcing strategies, leading hybrid teams, technology developments and the value of diversity in the workplace.”
MALCOLM WARD – CEO, AGN INTERNATIONAL
Opening keynote speaker Dr Theodoros Rapanos – Economic Analyst at Eurobank, presented a session titled Economic Uncertainty. Visual data highlighted past economic crises backed with insight into how they were overcome. Participants learned the main risks and challenges in the short, medium, and long term and were armed with the knowledge to help prepare them. Dr Panagiotis Iossif then engaged members in an interactive session drawing out business and fiscal lessons from ancient Greece.
Closing keynote speaker Antonis Tspatakis – a Greek Paralympic champion, shared his emotional and inspirational story. Antonis’ passion for swimming began at the age of five. Following a tragic motorbike accident later in life, his need for independence and becoming active again led him back to the pool. Antonis’ power, passion and determination fuelled his heroic success. His mantra is “Never stop dreaming. Anything is possible if you believe in yourself.”
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]]>The post Lanigan Ryan Relocates to New Office Space appeared first on AGN International.
]]>“Our move to a new office space reflects the continuing growth and development of Lanigan Ryan; always striving for excellence and looking to implement new and innovative ways of working that benefit our clients and team members.”
Stephen H. Staton, CPA – PARTNER, LANIGAN RYAN
Lanigan Ryan’s new address is 9841 Washingtonian Boulevard, Suite 300, Gaithersburg, MD 20878.
About Lanigan Ryan
Mid-sized accounting and consulting firm, Lanigan Ryan, has been working with owners of privately-owned companies for over 30 years. Services offered by the firm include individual and corporate tax return preparation, financial statement audits and reviews, outsourced accounting support, and navigation of various business transactions, among other business consulting assistance.
The greatest strength of the firm is its’ people; team members take personal care to create relationships and understand the comprehensive and unique needs of all clients, to find best-in-class solutions and anticipate issues before they arise. The firm was named on Inside Public Accounting’s 2022 list of “Top 400 Firms.”
9841 Washingtonian Blvd
Suite 300
Gaithersburg, MD 20878
Phone: 301.258.8900
LaniganRyan.com
Media Contact
Onesimus Asante, Marketing Coordinator Lanigan Ryan, P.C.
OAsante@LaniganRyan.com
301.258.8900
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