Global Mobility, Compensation and Pension

As an internationally operating consulting company, we support companies with a comprehensive consulting portfolio in the field of HR. Along with income tax and social security-related services in this field, we also offer in particular services in connection with employee deployments and global payroll processes.

We advise:
German and foreign companies of all sizes as well as their deployed employees

05/07/2016 – WTS Global/Poland: Loans to employees are not subject to Banking Tax

It has been nearly half a year since the effective date of the Tax (Certain Financial Institutions) Act, which introduced the so-called "banking tax". In this context, we think it worthwhile to let you know of a series of tax rulings on the matter of banking tax treatment of loans from employers to employees.

The tax rulings confirm that businesses extending loans to their own employees are not liable to pay banking tax.

Note for example the private tax ruling dated 12 May 2016, ref. IBPB-1-3/4510-253/16/JKT, from Director of Katowice Tax Chamber. The authority confirmed that the fact that a company extended Company Social Fund loans to eligible former employees does not in itself mean that the company should be considered a "financial institution" for banking tax purposes.

A similar view was taken by Director of Warsaw Tax Chamber in the private tax ruling dated 14 April 2016, ref. IPPB3/4510-245/16-3/MS, which dealt with housing loans extended solely by Company Social Fund, and by Director of Katowice Tax Chamber in the private tax ruling dated 27 April 2016, ref. IBPB-1-2/4510-381/16/AP, which involved loans by Inter-Company Lending and Assistance Fund for Employees.

This line of authority is clearly favourable for taxpayers, as has been indirectly confirmed also by Finance Minister's public tax ruling dated 3 March 2016, ref. PK1.8201.1.2016.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.

Doradztwo Podatkowe WTS&SAJA Sp. z o.o.
Delta Building, 4th floor
ul. Towarowa 35
61-896 Poznań
tel. (+48) 61 643 45 50
fax. (+48) 61 643 45 51
Warsaw Office
Central Tower, 22nd floor
Al. Jerozolimskie 81
02-001 Warszawa
 
This Newsletter provides general information and is designed to keep you up-to-date with changes in tax law, tax rulings and interpretations, case law development and interesting commentaries.
Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions that follow from the contents hereof.

 

Should you have questions our partners are happy to assist:

Susanne Weber

Partner
Income tax and social security
Tel.: +49 89 286 46-2256
susanne.weber@wts.de

Andreas Ochsner

Managing Director
Accounting and Payroll Services
Tel.: +49 8035 968-200
andreas.ochsner@wts.de

Peter Schmitz

Head of GES Munich
Tel.: +49 89 286 46-162
peter.schmitz@wts.de

Dirk Keppler

Head of GES Düsseldorf
Tel.: +49 211 200 50-615
dirk.keppler@wts.de

Frank Dissen

Partner
Head of Global Expatriate Services Germany
Tel: +49 69 133 84 56-52
frank.dissen@wts.de

Dmitri Stübner

Global Payroll Management
Tel: +49 9131 970 02-29
dmitri.stuebner@wts.de

Publications:

Assignments to Europe 2017

This booklet offers you a brief overview of tax, Social Security and immigrationrelated matters you might consider for your assignments to and within Europe.

Contact person: Frank Dissen

You can find this Guide here.

 

Foreign Nationals Working in Germany

Authors: Peter Schmitz, Frank Dissen, Dirk Keppler

You can find this Guide here.

 

WTS Factbook „Assignments to Asia“

In times of globalisation, the importance of international employee deployment is growing. With this booklet we offer you a brief overview of tax, social security and immigration related matters you might consider for your assignments to and within Asia.

To view the booklet please follow this link.

 

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