In addition to mechanical engineering, construction and assembly activities represent an industry-specific focus of our consulting services. We provide consulting services for global construction and assembly projects, including and in particular in countries where German investment is comparatively rare.
We cover the full spectrum of tax consulting services in this area.
This applies both to the possible tax liability of construction companies operating abroad and to the potential personal tax liability of employees working there. Depending on the question of establishing a permanent establishment, companies may have extensive tax declaration obligations in the foreign country, which we cover as pragmatically as possible with the help of our respective network partners (see Network).
Issues relating to foreign withholding taxes on construction activities and the correct treatment of value added tax must also be taken into account.
The employer’s duty of care for employees working abroad is also essential. On the one hand, this applies to the possible exemption from German income tax in Germany. In this case, a so-called hypotax can be calculated, which is a fictitious tax corresponding to the amount of tax that the employee would have had to pay in their home country if they had not worked abroad. On the other hand, any personal tax obligations of the employee abroad must be fulfilled, provided that such obligations have been established. In the case of a permanent establishment being established by the company, this usually happens from the first day of the employee’s work abroad.
Particularly in the case of longer stays abroad, which often result from employees working on different projects abroad, social security advice for the employee is at least as important as tax advice.