Cross-Border payments
Companies operating internationally often encounter cross-border payments, including dividends, interest, or fees for licenses and specific services. These transactions are frequently subject to double taxation, which can swiftly render international dealings a costly affair.
Payments to or from foreign countries often lead to a tax deduction in the country from which the paymentoriginates (the source country). This applies both to transactions between companies within a corporate group and transactions involving parties outside the group. Due to additional taxation in Germany, these payments can quickly become subject to double taxation. As a result, the question frequently arises whether the amount of withholding tax can be reduced or even eliminated. However, in both Germany and abroad, achieving this requires meeting certain conditions and adhering to specific formalities. The challenge in successfully minimising withholding tax lies in being fully aware of the necessary regulations and ensuring compliance with the relevant requirements.
We can assist you with the following services to avoid costly withholding tax errors and to take full advantage of tax exemption or reduction options.
Our services at a glance
- Review of current withholding tax processes and options for withholding tax reduction or exemption
- Support with civil law regulations for withholding tax obligations in supply and service contracts
- Examination of the possibilities for crediting or deducting withholding taxes
- Support with the declaration of withholding tax and application for exemption certificates
- Coordination with the tax authorities
- Workshops to raise awareness among your employees
- Coordination with your advisors/colleagues abroad or with our international colleagues