International Tax Planning in Germany
International companies and high net-worth individuals face difficult tax questions
Multi-national companies as well as medium-sized businesses which more and more often operate on an international level have always been facing difficult international tax issues like transfer pricing, withholding taxes, double taxation, international reporting requirements, taxation of so called permanent establishments, IP boxes, controlled foreign corporations provisions, and the like.
However, international tax planning is not at all restricted to business companies. High net-worth individuals, too, need to organize and optimize their fortune for tax reasons because their fortune is typically quite divers, be it shares and interests in multi-national companies, local businesses and partnerships, trusts, private foundations, private and/or commercial real estate scattered all over the world, several bank accounts in different countries and several currencies, etc. Also, wealthy people oftentimes travel a lot for private or business reasons and, thus, have more than one home and “center of their lives” which usually results in them being subject to tax in more than one country.
German & International Tax Planning by German Tax Attorneys
After all, this typically causes very difficult international tax problems which businesses and individuals face and which need to be solved in order to prevent double taxation, to reduce the overall tax burden, and – with respect to high net-worth individuals – to enable a tax efficient transfer of the fortune to the next generation. At the same time, both, business companies and high net-worth individuals have to deal with these difficulties in a legally and tax compliant manner because tax evasion has never been a smart solution, nor will it be in the future, given the fact that, in the meantime, the national tax authorities cooperate very closely on an international level to prevent tax fraud.
Our tax attorneys and tax consultants help you plan and structure your personal and business projects and your worldwide fortune in a tax efficient and legally compliant manner. Our main goal is always to reduce your overall tax burden and, at the same time, to develop a suitable solution for you and your family personally and for your business company you represent, respectively.
Learn more about German income taxation for individuals and business companies:
We are proud authors of the German chapters of the renowned LexisNexis Matthew Bender publication “Foreign Tax and Trade Briefs”, which covers the latest tax information for 128 countries including Germany. You can order your copy on www.lexisnexis.com.
Among others, our tax planning services include
- international tax planning for businesses, i.e. reviewing and analyzing the current corporate structure and optimizing and reorganizing the structure considering, among others, current international withholding tax rates and IP box and other tax haven regimes worldwide,
- international tax planning for high net-worth individuals which, among others, includes wealth and corporate succession planning, particularly with respect to income, gift, and estate taxes, and tax counsel regarding real estate and other assets (bank accounts, stocks, etc.) located in more than one country,
- legal and tax advice for clients liable for taxes both in one or more foreign countries and in Germany considering the double tax treaties in effect between the respective countries,
- corporate and comprehensive tax law advice for foreign companies that intend to invest in Germany by either setting up a German subsidiary, branch or representative office or by purchasing a German target company (inbound),
- corporate and tax law advice for German companies that intend to invest abroad (outbound),
- as a very special service, tax law advice for US nonprofit organizations, private foundations, patrons, and sponsors who intend to transfer grants or donations to German charities and – vice versa – for German nonprofit organizations, patrons, and sponsors interested in transferring grants and/or donations to the US (international giving).
Local tax expertise on a worldwide basis
While successful tax planning requires a broad international approach, as lawyers and tax consultants with a high-level expertise regarding the German tax system we mainly focus on the German part of the structuring process. This includes all relevant double taxation treaties as to income, estate and gift taxes entered into between Germany and a numerous number of other countries. It also includes a profound knowledge of typical international tax havens and the withholding tax rates for royalties, dividends, interests and other payments that apply on a worldwide basis.
As far as foreign tax regimes and jurisdictions are concerned we collaborate very closely with our foreign cooperating partners. In any case, international tax planning requires a very trustful working relationship between all tax and legal advisors involved and we are honored and proud to be a member of an excellent international network of local experts worldwide we can rely on in international tax planning matters. However, if you have retained local counsel in your country on your own and want us to work with your trusted advisor, we will be more than happy to do so and are very much looking forward to discuss all relevant tax issues with your advisor to give you the best legal and tax advice available.
Your German Tax Planning Lawyer and German Tax Attorney
Your international tax planning experts are German Tax Attorney Stefan Winheller (Certified Specialist for Tax Law), Senior Tax Accountant Caroline Heller and Senior Tax Accountant Jürgen Schwendemann. Please do not hesitate to contact us by e-mail (firstname.lastname@example.org) or by phone (+49 (0)69 76 75 77 80) and we will be happy to schedule an appointment with you in order to discuss your questions and tax planning needs. We are looking forward to working with you.