In the wake of ever more complex tax systems and increasing reporting obligations, tax technology is gaining significance in the field of taxation. The keyword "digitisation" means the transformation from analogue to digital processes and structures. For example, only system-generated or manually recorded invoices are produced in the systems. This applies not only to the transaction data, but also to the master and configuration data. The entirety of this information can only be processed if it exists in digital form.
Consistent and quality-assured data storage ensures efficient and qualitative aggregation, validation and reporting options for companies. Due to generally heterogeneous IT landscapes (number of systems/different systems/various master data configurations), all tax-relevant data must be identified and defined by the tax departments, in order to ensure consistency and quality. In addition to the definition of the general tax data, it must also be noted that the relevant data can be taken into account according to tax type. In principle, it must be noted that, for example, the database relating to the transfer pricing for the enrichment of turnover tax data (e.g. tax code) can also be used for VAT validations and reporting.
The creation of the aforementioned tax database concept will enable the implementation and use of tax reporting solutions in the next step. The connection to the database ensures that the same database is used for all tax validations and reports.
The IT-supported systems support tax departments in fulfilling compliance requirements, in particular by processing and validating data and reporting. In particular, this applies for mass tax data. Small systematic errors may already have severe consequences for a company. IT-supported tax processes also enable companies to quickly and easily retrieve information about their tax burden situation and identify optimization potential. IT-based control solutions therefore only deliver their full performance capacity and efficiency if these are adjusted to the individual circumstances of a company.
Our tax experts stand for Tax Technology Services.
IT Tool solutions and related services are offered in the WTS Group by WTS ITAX GmbH.
We advise our clients on all wage tax issues that arise in their companies. These include issues such as use of the one-fifth rule for severance pay, taxation of company cars, possibilities of salary conversion and flat-rate taxation. We also help with questions regarding the use of tax allowances and limits, the tax treatment of reimbursed travel expenses and allowances for double household.
We advise on BGM measures (workplace health management), taxation of gifts, entertainment and events (non-monetary gifts), company pensions and payments to pensioners. We are also experts on the specifics arising from the cross-border secondments of employees, as well as on general questions regarding payroll, the payroll tax certificate and obtaining electronic wage tax details.
We support our clients by answering ongoing questions and advising on drafting or updating guidelines and operational instructions. We also provide employee training and assist with implementing processes that ensure taxation.
The introduction of section 37b of the Income Tax Act (EStG) has put the issue of non-monetary gifts as a focus of tax audits. This new development allows companies to tax non-monetary gifts to third parties and their own employees at a relatively low flat-rate tax rate of 30%, so that taxation is compensated for the recipient.
We answer questions competently and reliably and always keep in mind the further consequences for business expense deduction for the company, VAT and social insurance.
Alongside the question of whether flat-rate taxation is at all permissible and which expenses have to be taxed, it also needs to be clarified how our clients can implement the flat-rate taxation regulations into their company - whether by manual reporting channels or by using IT solutions.
At WTS, we have developed the EVENTmanager for the latter. This tool provides our clients with a customised IT solution for the tax treatment of business entertainment, events and gifts.
Dynamically growing businesses and large corporate structures regularly face the task of issuing their employees with guidelines and instructions in order to meet the legal requirements for a correct tax treatment of a variety of issues. We provide our clients with optimal support with this and work with them to develop the best individual solution. We can review existing processes and test them for efficiency.
To be best prepared for an external wage tax audit, we help our clients before the audit takes place, e.g. by reviewing the existing tax processes or simulating an external wage tax audit. During the audit, we provide support with identifying facts and answering the auditor's questions. We do of course also accompany our clients for the final meeting with the tax authorities. After the audit, we assist with implementing measures to avoid repeat findings and with the preparation of results, e.g. for VAT and social insurance purposes (in cooperation with WTS Legal).
Although we always try to solve contentious issues with the tax authorities by mutual agreement, it may still be necessary to initiate an appeal procedure (appeal or legal proceedings). As tax advisers and lawyers, our wage tax experts are ready to achieve the best possible results for our clients in such cases and to participate in further advancing wage tax law.
Wage payments are usually subject to social insurance contributions. However, wage tax regulations increasingly differ from the regulations of social insurance law. As a result, the tasks of human resources - and especially payroll accounting - are becoming increasingly complex.
In cooperation with WTS Legal, we help with questions regarding social insurance, for example on the social insurance treatment of temporary staff (mini-jobs), students and interns. We assist with procedures to establish status, with questions regarding an obligation to contribute to the artists’ social insurance scheme, with analysing the findings from external wage tax audits, and provide support during audits by social insurance institutions, including any possible opposition proceedings.
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