Editorial

Dear Readers,

In the Key Issue report in this May edition, we examine the impacts of the US tariffs and give recommendations on how companies can deal with them. Next up, in the Tax section is an overview of the tax changes planned by the newly elected German Federal Government. While the reduction in the corporation tax rate has been widely discussed in public, the plan to tax companies as corporations irrespective of their legal form has gone almost unacknowledged. A look beyond the borders to Eastern Europe shows that this has long since become reality there. In our third report we discuss a structuring model that can be deployed in inheritance cases to prevent heirs from incurring the double burden of inheritance and income taxes.

The use of artificial intelligence (AI) in the area of tax and finance is growing strongly. In our Accounting & Finance section a report on robotic process automation (RPA) highlights the possibilities for the efficient use of the respective software in the financial field. In the non-financial field, AI can help with sustainability reporting. In the first part of a two-part report series, we discuss the sequence of steps in the reporting process. In Part II a description will then follow of how and which AI tools can be used as an aid in the individual process steps.

In the Legal section we first take a look over the border to Austria at the new Teleworking Act. The previous rules about working from home have been revised and affect not just Austrian employees but also German nationals who work for Austrian companies. Subsequently, we consider the current developments with respect to financial participation programmes for employees and the specific issue of the rights of employees who have left the company.

It is May and nature is bursting into bloom - and the short reports that we have put together for you are just as varied as a bunch of spring flowers. We kick off with the issue of whether or not owning property in Germany could also lead to its owner becoming a tax resident. This is followed by an analysis of a ruling according to which the deduction of input VAT is only possible when a service has clearly been rendered. It is obvious that employees should not be discriminated against - a new aspect covered in our third short report is the obligation that employers have towards their employees to also protect and defend them against third parties. The last will and testament is freely made - from a civil law perspective, however, you need to bear in mind that a joint will can only be unilaterally amended to a limited extent. Our final report is likewise about the issue of inheriting and gifting.

We wish you an interesting read. 
Your PKF Team