In a ruling of 24 November 21, the Mecklenburg-Western Pomerania Fiscal Court (3 K 6/20, call number: 228008; rev. BFH: VI R 27/21) stated that if a branch of an internationally active construction company is designated as the “place of employment” in the employment contract of a construction manager, it cannot be assumed for this reason alone that the employer has permanently assigned the construction manager to this branch.
In such a case, this branch office does not represent a first place of work for the site manager.
Furthermore, the branch office is also not considered to be the first place of work for the site manager if:
- He is assigned to a group leader of this branch office,
- He attends a work meeting approximately once a week, and
- attends other meetings at this branch office a few times per calendar year, and
- The site manager has an office in that branch, but actually does most of the desk work outside that office.
This decision is interesting with regard to the applicable travel expenses law and, if applicable, the provision of a company car, which should be a regular part of the contractual arrangement for this group of persons. It is therefore indeed necessary to take a close look at the facts of the case in order to identify any scope for manoeuvre. If necessary, contact your international tax advisor.
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