International Tax Law & Permanent Establishments

Limited Tax Liability

Limited tax liabilities – meaning the tax obligations of domestic companies and individuals abroad, or foreign companies and individuals domestically – introduce additional complexity outside of one’s own state of residence. For many companies, this is new territory. We support you both in the proactive planning and risk minimization of limited tax liabilities and in the secure fulfillment of your compliance requirements at home and abroad.

Our focus areas

• Structuring of revenue streams for planning and minimizing limited tax liabilities
• Optimization of withholding tax obligations
• Setting up blocker structures
• Fulfillment of compliance requirements at home and abroad
• Support during tax audits at home and abroad

Permanent Establishments

Permanent establishments have increasingly become a focus of tax authorities worldwide. At the same time, increased global mobility and the targeted recruitment of international skilled workers create new points of contact, sometimes even outside of one’s own sales markets. International permanent establishments are often only recognized retrospectively, which makes the already complex process even more challenging. We analyze your individual situation together and interdisciplinarily, assess risks worldwide, and design structures in a way that they remain economically sound and compliant.

Our focus areas

• Assessment of permanent establishment risks
• Avoidance or targeted establishment of permanent establishments
• Ensuring comprehensive compliance requirements worldwide
• Permanent establishment profit determination
• Support during tax audits worldwide

International Tax Law Group Global Mobility Consulting

Exit and Entry Taxation

In a globalized world, new markets are opening up, and political circumstances require a rethinking of supply and production chains. Often, a relocation or duplication of functions across borders is necessary. This can lead to a shift of individual assets or the tax-related relocation of an entire company. We analyze your individual situation and assess risks. Together with you, we find solutions that create security and enable freedom of movement.

Our focus areas

• Examination of the prerequisites for exit and entry taxation
• Quantification of exit tax
• Deferral options for exit taxation
• Value increase and depreciation opportunities in entry taxation
• Structures for avoiding exit taxation

European Tax Law

EU legislation from Brussels now affects all areas of life, and especially tax law. For so-called direct taxes such as income tax or corporate tax, numerous directives are in force that influence the national law of the member states. Some of these directives can be used for tax planning (e.g., the Parent-Subsidiary Directive for a zero withholding tax rate on intercompany dividends), while others are burdensome for taxpayers and must be complied with. Here, pioneering advice is necessary to avoid being at a disadvantage. With an EU-wide consulting approach – always up-to-date.

Our focus areas

• Analysis of tax-relevant Court of Justice of the European Union (CJEU) case law, EU directives, and legislative initiatives
• Representation in objection and litigation proceedings for the enforcement of fundamental freedoms under Union law
• Examination of EU state aid law and its effects on national tax law
• Advice on substance requirements abroad and abuse prevention

Controlled Foreign Corporation (CFC) Taxation

Controlled Foreign Corporation (CFC) taxation aims to prevent domestic companies from locating their business activities in low-tax foreign companies instead of domestically. The low-tax threshold is currently an effective tax rate of 15%. If the foreign company then engages in activities with little or no local value creation, and further conditions are met, its profit will be taxed for the domestic taxpayer involved as if it had been generated domestically. CFC taxation is primarily applied to countries outside the EU, but there are exceptions.

Our focus areas

• Tax screening of shareholding structures and corporate groups to identify relevant facts
• Structures for avoiding Controlled Foreign Corporation (CFC) taxation
• Special considerations for income with investment character and in the scope of extended limited tax liability
• Tightening of Controlled Foreign Corporation (CFC) taxation through double taxation treaties or the Tax Haven Defense Act
• Preparation of and advice on assessment declarations

International Inheritance Cases and Corporate Succession

International inheritance cases are emotional and challenging, both civil law-wise and tax-wise. We shape your business succession, develop tax-sound solutions, clarify complex structures, and ensure legal certainty. With a global mindset and local expertise, we navigate you through compliance hurdles and set the course for sustainable protection of your assets.

Our focus areas

• Assessment of international estate structures
• Advice on cross-border (corporate) assets
• Avoidance of double taxation in inheritance cases
• Analysis of inheritance tax benefits
• Advice on international foundation and trust structures

Corporate & Asset Succession, Foundation

International Tax Reporting Obligations

The globalization and digitalization of the economy open up new opportunities for companies and individuals regarding international investments and asset structuring. However, for the tax sovereignty of individual states, increased international capital mobility entails significant risks. International organizations and states have responded with various reporting obligations and procedures for the exchange of relevant financial information. We support you in implementing your reporting processes efficiently and in compliance with the law, with clear structures, digital support, and a keen eye on current developments.

Our focus areas

• Implementation of reporting obligations for cross-border tax arrangements (DAC6)
• Advice on DAC6, CRS, FATCA, etc.
• Process analysis and automation
• Monitoring current reporting requirements
• Ensuring reporting compliance

Pillar 2 | Global Minimum Taxation

International Tax Planning

Almost every company and entrepreneur has an international connection – through foreign branches, subsidiaries, foreign customers/suppliers, or foreign assets. This quickly means that foreign legal systems and thus different tax rules than in the home country must be observed. The coexistence of these rules entails risks, but also opportunities with proactive advice. In international tax planning, we combine both: the avoidance of pitfalls and double taxation, and simultaneously tax optimization. With dedication and expertise, and in all affected states.

Our focus areas

• Tax optimization of foreign investments by domestic taxpayers and domestic investments by foreign taxpayers
• Group tax planning and minimization of the international group tax rate
• Tax optimization of international company acquisitions, cross-border restructurings, and the utilization of intangible assets
• Compliance and Management of Global Minimum Taxation (Pillar 2)
• Utilization of DTAs and handling of anti-abuse provisions

International Tax Law Group Global Mobility Consulting

Withholding Taxes

Withholding taxes are encountered almost daily by internationally active companies. Significant amounts can quickly arise that impact business success. In addition to double taxation treaties and EU directives, national anti-abuse provisions are also relevant. With clever civil law structuring and targeted valuation, withholding tax effects can be reduced. We support you in efficiently managing and minimizing withholding taxes.

Our focus areas

• Structuring of revenue streams for withholding tax minimization
• Drafting of tax clauses to secure your company
• Setting up holding structures for financing or licensing structures
• Exemption and refund applications for withholding taxes at home and abroad
• Examination of maximum credit amounts and causal connections

Global Mobility Consulting

Exit Taxation

Whether due to new professional challenges, the establishment of international subsidiaries, or children studying abroad with company holdings: In a globalized world, taxpayers are more mobile than ever. Exit taxation is gaining particular importance for many private individuals. A tax-related relocation can also occur unknowingly. Careful planning is crucial. We analyze your individual situation, assess risks, and develop solutions that create security and enable freedom of movement.

Our focus areas

• Examination of the prerequisites for exit taxation
• Quantification of exit tax
• Implementation of structures for avoiding exit taxation
• Communication with tax authorities when utilizing deferral options
• Documentation and monitoring of holding periods and cooperation obligations