Remote cross-border work: transfer pricing, corporate and payroll tax

Transfer pricing and permanent establishments for cross-border activities of Employees

• The arm's length principle in times of BEPS.
• Types of business premises.
• Transfer pricing methods and application to (digital) value chains.
• The special cases of employee secondment and relocation of functions as well as "new work" cases (remote cross-border activities).

Wage tax and social security for cross-border activities of Employees

• Personal tax liability and application of double taxation agreements for employee income.
• Income tax consequences for the employer.
• Social security consequences for the employer.

Practical case 1: Business premises - horror scenario or deliberate use?

• Practical advice on the various risks of (un)consciously establishing a permanent establishment.

• The misjudged danger of the 183-day rule from a wage tax perspective and the consequences for social insurance.

Practical case 2: Service provision - solution for short-term assignments?

• Determination of an arm's length service fee.
• Best-case solution from a payroll tax and social security perspective?

Practical case 3: Posting of employees - solution to avoid permanent establishments

• The economic concept of employer.
• Practical handling of the (unintended) consequences in the area of income tax and social security.

Processes and documentation in business practice

• Assistance with the necessary processes between the tax and HR departments.

• Regulation of topics via internal company guidelines and instructions for implementation in practice.

• Practical advice on contracts, presentation of cases in the transfer pricing documentation.