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.


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