Questions & Answers
Answers to common questions.
Curated from our articles on tax advisory, statutory audit and legal services — alphabetical, filtered by audience or topic.
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What requirements must an employer observe when terminating the employment of a severely disabled employee?
Before issuing the termination, the employer must obtain the consent of the Integrationsamt (Integration Office). This applies regardless of the reason for termination, including dismissals for operational reasons. A termination issued without such consent is invalid.
As of: June 2009
What advantages does mediation offer compared to court proceedings?
Mediation is generally faster, more cost-efficient and more confidential than court proceedings. It allows for tailored solutions that go beyond purely legal positions and often preserves the business relationship between the parties. In addition, the participants retain control over the outcome instead of leaving it to a judge.
As of: January 2013
Which bonuses may not be credited toward the minimum wage?
Items that may not be credited include, in particular, allowances for quantitative or qualitative additional work, premiums for work at specific times of day or on Sundays and public holidays, rotating shift allowances, overtime premiums, and premiums for work performed under especially arduous, demanding, or hazardous conditions.
As of: June 2015
Which internal processes are required to complete the Focus-Money questionnaire?
Completing the questionnaire requires cross-departmental collaboration within the firm, as it covers both technical and organizational matters. Numerous staff members are involved to ensure that all questions are answered fully and accurately. At the same time, the process serves as an internal review of our professional standards.
As of: June 2020
What is the legal basis for mediation in Germany?
The legal basis for mediation in Germany is the Mediationsgesetz (Mediation Act), which came into force in 2012. It governs, among other things, the duties and obligations of the mediator as well as the confidentiality of the proceedings. This established mediation as a recognized, independent method of conflict resolution under German law.
As of: January 2013
What gift tax risk arises when transferring a sole proprietorship to a family-owned GmbH?
In addition to the income tax consequences, a gift may be deemed to have occurred in the amount of the goodwill. According to recent case law, however, this gift is not treated as a transfer to the shareholder (e.g., the son), but directly to the receiving GmbH. This leads to significantly disadvantageous gift tax consequences.
As of: June 2009
Whose knowledge of a severe disability is attributed in a business transfer?
The transferor's knowledge of an employee's severe disability is attributed to the acquirer. Even if the acquirer had no information about the severe disability, they cannot rely on this lack of knowledge to circumvent the special protection against dismissal.
As of: June 2009
Who can work as a commercial mediator?
Commercial mediators have completed specialised training, often holding a Master of Mediation or a certification as a mediator. They frequently come from a professional background such as Steuerberater (German Certified Tax Advisor), Rechtsanwalt (German Attorney-at-Law) or Wirtschaftsprüfer (German Statutory Auditor), and additionally master conflict-resolution methods. This combination of subject-matter expertise and procedural skills is particularly valuable in commercial disputes.
As of: January 2013
Who awards the BAFF distinction and how often?
The initiator is Bündnis für Familie in Bocholt e.V. The award was first presented in 2011 and has since been awarded every two years. The patron is the Mayor of Bocholt.
As of: October 2013
Are allowances and bonuses credited against the statutory minimum wage?
This requires a differentiated view. According to the case law of the European Court of Justice and the BAG on posted workers, employer payments are only credited against the minimum wage if, by their intended purpose, they serve as consideration for the regular work performance owed. Payments serving a different purpose are not taken into account.
As of: June 2015
How can you identify a high-quality Steuerberater (German Certified Tax Advisor)?
Several indicators help: the quality certification of the Deutscher Steuerberaterverband e.V., certification under DIN EN ISO 9001 in quality management, and recognition in specialist publications such as the annual Focus-Money list of top Steuerberater. Personal recommendations from your network are also a common decision-making aid.
As of: January 2011
What was the statutory minimum wage in Germany at its introduction?
The statutory minimum wage was introduced at EUR 8.50 gross per hour and generally applies to all employees in Germany, unless a statutory exemption applies.
As of: June 2015
How can an entrepreneur gradually scale back their patriarchal role?
One way is to develop personal hobbies or take on honorary positions, thereby progressively reducing professional commitments. This creates room for the successor to make their own decisions and assume responsibility. A gradual withdrawal has a positive effect on the handover process.
As of: April 2015
How can companies continuously improve or stabilize their rating?
Key factors are tailored reporting, structured and regular communication with financing banks, and timely provision of relevant business information. This creates transparency, which has a positive impact on the rating assessment. Professional guidance by rating experts can support the process.
As of: April 2005
How can companies apply for the BAFF?
Companies based in Bocholt can apply through the Bündnis für Familie in Bocholt e.V. Details on participation and application procedures are available on the association's website. Taking part is worthwhile to showcase family friendliness as a key location factor.
As of: October 2013
How does the Focus Money Top Tax Advisor ranking work?
Focus Money invites around 100,000 tax advisory firms in Germany to participate, with just under 95,000 experts voluntarily taking part in the assessment. Participants must provide details on firm structure and continuing education, and answer technical examination questions. Each year, approximately 300 firms are recognized as Top Steuerberater (German Certified Tax Advisor).
As of: April 2018
How common is ISO certification in the tax advisory sector?
Significantly fewer than 15 percent of tax advisory firms in Germany are certified under DIN EN ISO 9000 ff. Among firms recognized as top tax advisors by Focus Money, the share of certified firms is markedly higher. Certification is therefore regarded as a quality indicator that only a minority of the industry can demonstrate.
As of: August 2009
How many Steuerberater are there in Germany?
More than 86,000 Steuerberater (German Certified Tax Advisor) are licensed in Germany. Given this large number, quality indicators such as certifications and independent awards serve as important guidance when choosing an advisor.
As of: January 2011
How many tax advisory firms are recognized annually by Focus Money as Top Steuerberater (German Certified Tax Advisor)?
Focus Money recognizes approximately 300 tax advisory firms each year as Top Steuerberater. In 2018, the award was published in issue 17/2018 under the title 'Beratung erster Klasse' (First-Class Advice).
As of: April 2018
How is the 'Top Steuerberater' award by Focus Money granted?
The award cannot be purchased; it is based on complex professional and organizational assessments that are evaluated scientifically. Each year, Focus Money issues an extensive questionnaire that systematically reviews the capabilities of the firms. The evaluation follows uniform criteria for comparable firm segments.
As of: June 2020
How does a reservation of subsequent review in the tax assessment affect the home office deduction?
If the entire tax assessment is issued subject to subsequent review (§ 164 AO), it can be amended in the taxpayer's favor at any time. Expenses for a home office can therefore be claimed retroactively by requesting an amendment of the assessment. Procedurally, the taxpayer is on the safe side in this case.
As of: July 2010
What should be considered when contributing a sole proprietorship to a GmbH?
Both income tax aspects (disclosure of goodwill) and gift tax risks should be carefully reviewed in the context of such a contribution. Particularly in transfers within the family, the potential assumption of a gift to the GmbH must be taken into account. Forward-looking planning with professional tax advice is therefore essential.
As of: June 2009
What should buyers of a medical practice pay particular attention to from a tax perspective?
Before the acquisition, buyers should have it examined whether and to what extent the purchase price – particularly the goodwill component – is tax-deductible through depreciation. Since case law in this area is evolving, careful tax and legal structuring of the purchase agreement is essential. Expert advice from a Fachanwalt (German Specialist Attorney) for tax law is highly recommended.
As of: April 2007
How does a firm analysis differ from a pure success factor analysis?
A firm analysis goes beyond merely evaluating success factors and also includes the practical implementation of the insights gained. It combines diagnostic analysis with concrete measures for safeguarding and enhancing quality in day-to-day firm operations.
As of: March 1997