Amy's International tax

Q- What is tax implications for technical services performed by Thailand people in Germany? Duration of the work; 2-3 months, US entity is a benefiting entity from this work. US entity and Thailand entity are related parties and Thai company will invoice for their people's work in Germany to the US company.  1. German Withholding Tax (WHT) or Corporate Tax Exposure Even though the Thai company invoices a US entity, German tax authorities may tax the income earned from activities physically performed in Germany. • If the Thai company has a taxable presence (“permanent establishment” or PE) in Germany due to its employees working there for 2–3 months, Germany may tax the income attributable to that PE. • The presence of employees physically performing services in Germany, even temporarily, can trigger a PE under German law if: • There is a fixed place of business (e.g. office, project site); or • The work involves a “service PE”, potentially triggered under Germany–Th...

  Tax Risk Assessment for Thai Entity Invoicing US Entity for Services in Germany Potential tax risks for a Thai entity ("Thai Co") that will be invoicing a US entity ("US Co") for services rendered by field people (FPs) in Germany. The FPs will support a New Equipment project test, "marrying" a turbine package (provided by the project owner, likely affiliated with US Co) with driven equipment (provided by MAN, a German company) and testing them in Germany. The engagement is expected to last 2-3 months, with two FPs mobilized sequentially for approximately 30 days each. These costs are part of the New Equipment project scope (USA) and will not be directly invoiced to the customer or MAN. Key Jurisdictions and Activities:  * Thailand: Location of the entity employing and dispatching the FPs and issuing the intercompany invoice.  * USA: Location of the entity receiving the intercompany invoice and managing the New Equipment project.  * Germany: Location wher...

 A "price adder" in a business and pricing context is an amount that is added to the base price of a product or service. It represents an additional cost or fee that is being passed on to the buyer, often to cover specific expenses or to reflect certain conditions of the sale. Think of it as building blocks for the final price. You start with a base price for the core item or service, and then you add specific amounts (price adders) for things not included in that base price. Price adders are used for various reasons, such as: Covering specific costs: As in your case, it can be used to cover taxes, duties, or other fees that are not typically included in the standard list price, especially in international transactions where import-related costs are variable and depend on the buyer's location and the Incoterms. Adding optional features or services: Customers might pay a base price for a product and then pay price adders for extra features, customizations, installatio...

  Vietnam has signed 17 bilateral or multilateral free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership Agreement, plus pacts with the European Union, Japan and South Korea. It has no free trade deal with the United States.

 S - Changes to the mark-up percentages that are identified in this email based on further work with PWC?  Or, do these percentages still stand?  We expect that this should reconcile to the trial balance. O- The CIP write off and the success fee expense did not move the markup %'s after PwC recommended adjustments. However, there is one small amounts  related to regular fixed asset disposal operation that can slightly reduce the %'s.  S- Do you have the new #s now, or are they still in process?  If still in process, do you have an idea on timing? O- However, to be consistent with prior years where these same fixed assets disposals were not included in the markup % for the TP Study, I have not included them this year for the TP Study either.  I reported yesterday 4.58% for Mfg vs 4.44% that yo can see in the chart S-  Will these totals tie to the financial statements?  Do you expect any other changes at this point?(I would guess you are going ...

  Indirect tax (i.e., VAT) concern was raised when the US entity place the Purchase Order (PO) to Italian supplier under FCA (or FOB) term for direct shipment to the customer in Qatar (also F-term) where the customer collect in Italy where the US entity does not have an indirect tax registration.  To resolve this issue, there are two proposed solutions.  (1) between the EU supplier -> US entity: EU supplier can only apply 0% VAT for export, if either EU supplier or the US entity arranges the transport outside EU. If end-customer collects, EU supplier should charge local VAT (2) US entity -> non-EU end-customer: If EU supplier or the US entity arranged the transport outside EU, then the US entity sale is outside the scope of VAT. If end-customer collects, the US entity should strictly speaking VAT register locally, i.e. Italy in this case. <=> From a VAT perspective, we should use a C or D Incoterm (but not DDP) to avoid the risk in Italy. Based on the above in...