Editorial

Dear Readers,

We kick off this November edition of our PKF Magazine with our Key Issue report on minimum tax. It is indeed supposedly aimed solely at large corporate groups with revenues of more than €750m. Nevertheless, smaller companies should address this issue even if they are not consolidated and are part of a joint venture. The report that follows deals with the question of: when do immediately deductible upkeep expenses for acquired rental properties turn into acquisition-related production costs, which have to be depreciated over a long period for tax purposes?

In the course of digitalisation, procedural documentation is becoming more and more important. In our third report we discuss what the fiscal administration expects and how this requirement can be used to enhance efficiency in a company. Subsequently, we consider a topic of special interest for shipping companies, namely, tonnage tax; a recent ruling in this respect by the Federal Fiscal Court attached strict requirements to the lump sum taxation option. We then take a look at a ruling related to value added tax, likewise frequently known for its special rules, that concerned input tax deduction for items that may - or may not - be allocated to a company.

In our Legal section, we turn our focus on to the obligation to pay social security contributions in cases of flat-rate taxation, such as for example, for invitations and large corporate events. A distinction has to be made here between tax and social security - you can read about what can be expected if notification is delayed. A gift is a gift - however, acquiescence with respect to lending or usage does not exactly mean forever. In the report that then follows, we describe how even after 20 years a nasty surprise can loom if the rights have not been recorded and certified by a notary. 
Finally, in the form of brief reports, we deal with topics pertaining to builders’ and tradesmen’s services, allowable work-related costs that are frequently offset against tax as well as a tenant’s rights with respect to the statement of service charges, and the new business identification number. 

We hope that you find our online reports stimulating reading.
Your PKF Team