deen
deen

First place of work for an employed site manager

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.

Practical note:

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.

 

Do you need advice on international personnel assignments? Feel free to contact us!

Or are you interested in our seminars? Take a look here!

Related Posts

Integration von Expatriates

Did they come to stay?

Labor and skilled labor shortages are highly topical issues. The limiting effects of demographic change on the German labor market make the use of foreign workers and skilled workers essential. How do companies get foreign...
Balkendiagramm

Salary determination for expatriates

Home versus host country approach and how to deal with inflation – What options do companies have to pay their expatriates appropriately during the foreign assignment and what influence does inflation have? The issue of...

Latest blogs on global assignments

Did they come to stay?
18. April 2023
Salary determination for expatriates
12. April 2023
Application of the daily wage tax table – Significantly higher expenses for employees with limited tax liability
12. April 2023
USA: USCIS plans to increase fees
27. February 2023
Travel expenses and travel expense reimbursements for business and work-related trips abroad from 01.01.2023
31. January 2023
LAG Hamburg: Effectiveness of Hypotax Agreements between Employer and Employee
19. January 2023

Get the latest information on "International Personnel Management - assignments worldwide".

X
X
X