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International Tax Law.
BR Partner advises on cross-border tax questions in both directions: German companies and individuals with activities abroad, and foreign companies and individuals investing in Germany. Both partners are certified specialists for international tax law, with professional stations in New York and Amsterdam.
What we take care of internationally.
Double taxation treaties
Who taxes which income? We apply tax treaties, resolve residence questions and avoid double taxation where possible, through exemption or credit.
Permanent establishments
Creation, avoidance and structuring of permanent establishments, from the home office to a foreign branch.
Withholding taxes
Withholding tax on dividends and on royalties and service fees: we assess relief entitlements under treaties and EU directives and handle exemption and refund procedures, for domestic and foreign recipients of remuneration.
CFC rules
Interests in foreign companies with low-taxed passive income can trigger Germany's CFC rules (Hinzurechnungsbesteuerung). We assess whether they apply, structure holdings where possible so that they can be avoided, and handle the related filing obligations.
Expansion & inbound investment
Market entry abroad or investment in Germany: location and structure, legal form, financing and the repatriation of profits.
Relocation
Exit taxation, deemed disposals (Entstrickung) and residence questions: we advise on the tax side of cross-border lives, for companies and individuals.
Cross-border means: two tax systems, one solution.
In international matters, a single legal system is rarely the problem. It is their interplay: qualification conflicts, dual connecting factors, structures that two tax authorities interpret differently. We think German tax law and treaty law together – and, with partners on the ground, the law of the other state.
Both founders spent their careers in international teams at Ernst & Young: Matthias Ritter at the German Tax Desk in New York, Maximilian Brändle at the Amsterdam office. This experience is the core of BR Partner, not an add-on: international questions are everyday business here, in transactions, formations and ongoing advice.
Frequently asked questions about international tax law.
What is a “Fachberater für Internationales Steuerrecht”?
A protected German specialist qualification for tax advisors who demonstrate in-depth knowledge of international tax law: through a specialist course, examinations and practical cases. At BR Partner, both partners hold this qualification.
When does a permanent establishment arise abroad?
Sooner than many think: a fixed place of business, a construction site beyond a certain duration or a dependent agent can be enough. The details are set by the applicable tax treaty. Home-office arrangements can also create permanent establishments. The consequence: registration, filing and profit-attribution obligations in the other state.
What does a double taxation treaty regulate?
It allocates taxing rights between two states and determines how double taxation is avoided, by exemption or by credit. Germany has concluded tax treaties with more than 90 states; the details differ considerably from treaty to treaty.
What are Germany's CFC rules?
An instrument of Germany's Foreign Tax Act: if a controlled foreign company earns passive income that is taxed at a low level, Germany attributes that income to the German shareholders. Whether the rules apply depends on shareholding, type of income and tax level. Anyone structuring abroad should assess them early.
What is exit taxation?
Anyone leaving Germany who holds a significant interest in a corporation may have to tax the hidden reserves in those shares as if they had been sold. The topic is complex and has been tightened considerably in recent years. It should be considered early in the company structure and also, where foreign individuals stay in Germany only temporarily, analysed before they arrive.
Do you advise foreign companies investing in Germany?
Yes. We support inbound investment from the choice of structure through registration to ongoing compliance, in English and in cooperation with the advisors in the home country.
Let's talk about your next decision.
Your plans cross borders? Then your advice should too. We look forward to your message, in English or German.
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