Debunking the tax and legal myths of doing business in germany
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Transcript of Debunking the tax and legal myths of doing business in germany
Debunking the Tax and Legal Myths of
Doing Business in Germany
Thursday, May 12, 2016Velocity Global
3001 Brighton Blvd.,
Denver, CO 80216
Joerg Kemkes, Managing Director
Rueter Partner, San Francisco
Presenters
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
4 GmbH Taxation
Trade tax (depends on location)
• about 14% of taxable income
Corporate tax
• 15%, solidarity surcharge 5.5%
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
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
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
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]