As soon as companies operate across borders, additional tax questions arise. EGIDO supports you in classifying international business relationships for tax purposes and considering the associated obligations and risks early.
International business relationships open up new opportunities but also bring additional tax requirements. Even individual services abroad, participation in foreign companies, or employees working across borders can have tax implications.
When income or corporate profits affect multiple countries, the question arises as to where they should be taxed. We examine the respective situation, taking into account national regulations and existing double taxation agreements.
Foreign companies can establish tax obligations in Germany through subsidiaries, permanent establishments, employees, or other activities. We assist in classifying and implementing the resulting requirements.
Those investing abroad, entering new markets, or establishing a company or permanent establishment there should consider the tax implications early on. We accompany you in classifying and planning international activities.
Not every activity abroad requires a separate company. At the same time, certain activities can establish a tax permanent establishment. We examine which structure suits your project and what tax implications arise from it.
Services and payments between affiliated companies in different countries must be structured in a way that is justifiable for tax purposes. We assist in classifying transfer prices and the associated documentation obligations.
With dividends, interest, royalties, or other cross-border payments, withholding taxes may apply. We examine which regulations apply and whether relief or refund options exist.
When multiple countries are involved in a business transaction, the question may arise as to which country is entitled to tax certain income.
Double taxation agreements – abbreviated as DTAs – regulate between two countries which country has the right to tax certain income and how double taxation can be avoided.
Different procedures may apply, for example:
Exemption: Certain income is exempt from taxation in one country.
Credit: A tax paid abroad can be credited against German tax under certain conditions.
Which regulation applies depends on the respective DTA and the specific circumstances.
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International business models not only affect companies but often also their employees.
Tax questions may arise, for example, when:
Employees are temporarily seconded abroad
Foreign employees work in Germany
Employees work permanently from abroad
Employees are active in multiple countries
There is a residence abroad
In addition to payroll tax, social security and potential permanent establishment risks may also play a role.
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An international structure should not be tax-reviewed only after contracts have been signed or companies established. Especially with foreign investments, location, legal form, cash flows, and the distribution of tasks between the involved companies can have tax implications.
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Cross-border business relationships bring additional tax requirements. We support you in correctly classifying international issues and recognizing tax risks early.
Understand the Situation
We discuss your existing or planned international activities and clarify which countries, companies, and business relationships are affected.
Identify Tax Questions
We examine which German tax regulations, double taxation agreements, and international interfaces are relevant.
Coordinate Approach
You receive a clear assessment of the tax issues, and together we determine which tasks will be undertaken or coordinated with other parties.
Accompany Implementation
We assist with the agreed tax tasks and, if necessary, accompany your international activities on an ongoing basis.
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Marcell H.
In cross-border matters, the specific company structure and individual case are crucial. In the initial consultation, we clarify which international tax questions are relevant for your company and how EGIDO can assist you.
International tax law encompasses tax regulations for situations involving multiple countries. This includes, for example, foreign permanent establishments, subsidiaries, international business relationships, employee secondments, or cross-border payments.
Consultation can be advisable as soon as your company establishes business relationships abroad, deploys employees across borders, invests abroad, or conducts payments between companies in different countries.
A double taxation agreement regulates between two countries, in particular, which country has the right to tax certain cross-border income and how double taxation can be avoided.
A permanent establishment is generally a fixed place of business through which the activities of a company are wholly or partly carried out. Whether a tax permanent establishment arises in a specific case depends on the respective circumstances and possibly the applicable double taxation agreement.
A cross-border home office can raise tax questions regarding a potential permanent establishment. Whether a permanent establishment actually arises depends on the specific activity, the circumstances of the workplace, and the relevant tax regulations.
Inbound refers to the consulting of foreign companies or investors who become economically active in Germany.
Outbound refers to the tax consulting of German companies regarding economic activities and investments abroad.
