In addition to mechanical engineering, construction and assembly activities represent an industry-specific focus of our advisory work. We advise on worldwide construction and assembly projects, also and especially in countries where German investments are comparatively rare.
We cover the full tax spectrum of advisory activities.
This applies both to the possible tax liability of the construction company operating abroad and to the potential personal tax liability of the employees working there. Depending on the question of setting up a permanent establishment, companies may be subject to extensive tax declaration obligations in the foreign country, which we cover as pragmatically as possible with the help of our respective network partners (cf. Network).
Likewise, questions of foreign withholding taxes on construction activities as well as the correct VAT treatment must be considered.
The employer's duty of care for employees working abroad is also very important. On the one hand, this applies to the possible exemption from German wage tax in Germany. Here a so-called hypotax can be calculated, which as a fictitious tax corresponds to the amount of tax that the employee would have had to pay in the home country if he had not worked abroad. On the other hand, any personal tax obligations of the employee abroad must be fulfilled, if such obligations were established. In the case of a permanent establishment, this regularly occurs 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.