Payroll and Global Expatriate Services

Employers are faced with increasingly complex rules regarding wage tax and social security regulations, as well as continuous changes in legislation, tax authorities’ decrees and case law. This entails huge expenses and liability risks for companies.

Furthermore, the intensive networking of markets, cross border transfer of know how in the form of personnel secondments and the globalization of companies are a matter of course today and support competitiveness. As a result, employers and their employees are faced with the tax and social security regulations of the country of origin and the other country.

Our experts at locations in Berlin and Frankfurt am Main are pleased to advise you together with the colleagues of the BDO network in more than 150 countries. They develop for you customized solutions for national and international issues.

Your advantages at home and abroad

• Minimizing tax risks
• Internationally coordinated approaches
• Effective and cost-minimizing deployment policy

Wage Tax

• Ongoing consultancy on the area of wage tax law and social security law
• Preparation/review of corporate travel expense policies
• Non-cash benefits to business partners and employees (§37b of the EStG (German Income Tax Act))
• Consultancy regarding innovative, tax-optimized salary components:
  • Taxation of non-cash benefits
  • Tax-free gifts to employees
  • Company pension scheme
     
• Support with wage tax external audits and social insurance carrier audits
• Minimizing liability risks through our ‘quick wage tax check’
• Payroll tax rulings as per §42e of the EStG (German Income Tax Act)
   

Global Expatriate Services

Support for Companies

• Checking specific issues that may arise from assigning employees (e.g. establishing permanent establishments, applying the Außensteuergesetz (AStG) (German foreign tax act)
• Creating/reviewing company posting directives
• Reviewing/participating in drafting assignment contracts and principles for the tax equalisation method for employees
• Determining expected tax and social security contributions per employee
• Preparing tax equalization calculations
• Applying for the necessary certificates for tax and social security purposes

(e.g.: continuance in the local social security system, income tax exemption, income tax deduction features for employee, residence certificate)

Support for Employees

• Consultation sessions in the home and host country in order to inform employees about the tax situation during their assignment
• Preparing income tax returns in the home and host country (including checking tax assessments, conducting judicial remedies and other correspondence with the tax office)

Consultancy for individual, tax or social security impact of the assignment and/or localization in the home country

Coordination Services

A BDO location as a central point of contact that coordinates global support for the client with the other BDO member firms (on request).

Using Web-based Software

which provides an overview of the current status of all assignments (on request)