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Spectrum Tax Consultancy Accounting Co-Operation Partner News Starting January 1, 2004, changes of the rules about withholding wage taxes are to be considered by international companies. The economic employer will be liable for the wage taxes in the future. Up to December 31, 2004, there was no obligation for a German company to withhold wages taxes if the employee, who worked for the affiliated German company, was employed by the foreign company even though the personnel cost were invoiced by the foreign company. The reason for this matter was the following: Only the legal employer was responsible and liable for the wage taxes. It didn’t matter who finally paid the costs (economic employer). Now the wording of the law was changed and the German employer – as the economic employer – is liable for not withheld wage taxes. Please be aware of the very important change! For any questions, please do not hesitate to contact us. News New German transfer pricing documentation rules came into effect. This means that all companies acting internationally do have to consider those rules to avoid transfer pricing adjustments and extensive penalties. TiB helps you to set up a defence strategy. [more...] Foreign Companies can claim for paid German VAT. Please consider a court decision that only original invoices entitle for a VAT refund. [more...]