This means that, other than in very specific circumstances, a compensation component is only social security exempt if it is firstly exempt from German income tax.
To ensure compliance, and avoid potential financial penalties, read our detailed guide to Germany’s tax rules and regulations.
TRC can assist international assignees in obtaining vehicles through our affiliation with International Auto Source. Furniture leasing can produce significant savings in household goods shipment and temporary housing costs, and can also speed the settling-in process.
This innovative program facilitates the purchase or lease of new vehicles for non-US citizens and returning U. TRC can arrange quality furniture leasing services in many locations worldwide.
Cultural training can speed adjustment and assimilation, facilitate a more rewarding assignment and personal experience and reduce the risk of “culture shock” and a failed assignment.
Training is conducted by an experienced professional and is customized to each assignee’s needs and the host country’s culture.
Noted below are some of the most common International assignment compensation components and the German income tax and social security treatment of such compensation.
Two major elements are currently impacting global mobility management.
A robust and fit for purpose international assignment policy should be designed and created having considered the following points: It is extremely important that International assignment compensation (both cash payments and non-cash benefits) are calculated accurately and subject to the appropriate German income tax and/or social security withholdings.
In Germany, income tax exemption always has priority over social security contribution exemption.