Equalization Agreement Deutsch

    If an employer has reached an agreement with us on the operation of a modified PAYE agreement with the PAYE82002 manual, the P11D forms must not be submitted until January 31 of the year following the tax reporting year, subject to employee agreement. When an employer uses tax compensation calculations for a worker posted abroad, the employer assumes responsibility for paying the correct amount of taxes for the country of origin and host. The worker pays a “hypothetical tax” based on the tax rate, as if working in his country of origin, without allowances and benefits related to the transfer. This tax compensation relative to the country of origin guarantees a fair tax rate for the worker during the assignment. Article 107 of the Constitution regulates horizontal payments between states. tax revenues allocated to a state are no longer affected on the basis of where the tax is collected, but on the number of residents; Income tax revenues are those of the state in which the resident lives and the revenues from the government`s corporate tax where taxable economic output is generated. An exception to this rule is a state`s share of VAT revenue; Up to a quarter of a state`s tax revenue can be allocated upstream to particularly fragile states. Compensation is increased, with states eligible for payment adjustments now expected to receive 95% of the average revenue from all states, up from 91% in the past. The problem of tax compensation arises when a person works for an international company and starts working abroad. The question is who should pay taxes and how much they have to pay. As a general rule, the person receives a net salary, that is, the money he or she would have received in their country of origin after taxation. However, the company is required to pay taxes for its employee. If they work in a country with lower taxes, the company takes out the savings.

    On the other hand, when they work in a country with higher taxes, the company pays the surplus. In both cases, the amount received by the employee is the same. If the policy only benefits the employee (the reduction of taxes when working abroad leads to an increase in taxes, but not an increase if he works abroad leads to lower taxes), it is referred to as a policy of tax protection. Compensation is the most widespread revenue redistribution system in Germany and an important instrument for financing regional development. [2] Consciousness is high because of differences of opinion between states; Several states have several appeals not, among others 1952, 1986, 1992, 1999 and 2006, the allocation of payments to the Federal Constitutional Court. [3] An action by the Bavarian and Baden-Wuerttemberg states is pending in 2016.

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