#1Deloitte. 德勤 Invest in Germany - Update 2021 投资德国-2021年更新 Claus Schuermann / Merten Zenker / Alexander Fischer / Wolfgang Ehmann / Hilton Yin MAKING AN IMPACT THAT MATTERS since 1845#2Agenda 1. Investment climate 2. Tax developments a. Status Quo of German Corporate Tax System b. Developments on EU level c. Developments on German level 3. Legal developments a. 中国企业海外投资法律热点问题 © 2021. For information, contact Deloitte China. 2#3Germany Tax Update Speakers Claus Schuermann Wolfgang Ehmann Managing Director Germany Tax Services AP ICE Acting Chief Representative / Executive Director German Industry and Commerce Ltd. Merten Zenker Tax Manager Germany Tax Services AP ICE Alexander Fischer Hilton Yin International Partner Deloitte Legal Rechtsanwaltsgesellschaft mbH Senior Associate Shanghai Qin Li Law Firm © 2021. For information, contact Deloitte China.#4Investment climate © 2021. For information, contact Deloitte China. Presentation title#5THE THREE PILLARS German Foreign Trade Promotion Diplomatic Mission of the Federal Republic of Germany Botschaft der Bundesrepublik Deutschland The German system of foreign trade promotion is jointly executed by the government and economy. Official representation of the German economy abroad AHK German Industry AHK and Commerce Ltd. 德國工商會有限公司 © 2021. For information, contact Deloitte China. Deutsche Auslandshandelskammern Corporation for foreign trade and location promotion GTAI GERMANY TRADE & INVEST 5#6INVESTMENT IN GERMANY Top 20 Destination Countries Globally Top 20 Destination Countries (2015-2019) By Number of FDI Projects USA UK Germany Source: GTAI 2020, reported by Bundesbank 2020 AHK German Industry and Commerce Ltd. 德國工商會有限公司 © 2021. For information, contact Deloitte China. 7,144 6,140 China France India 4,181 3,849 3,785 Spain Mexico Australia 3,208 2,731 2,092 Singapore Poland UAE Canada 2,025 1,893 1,814 1,710 Netherlands 1,462 Russia 1,401 Brazil 1,388 Vietnam 1,336 Japan 1,164 Ireland 1,123 Belgium 1,045 Romania 1,037 9,181 6#7INVESTMENT IN GERMANY Investment Projects Projects in Germany (2015-19, total number/rank) Ranked by Source Country USA Switzerland UK France China (incl. HK) 1,160 678 569 375 404 371 Netherlands Japan 273 Sweden 161 Spain 124 India 118 Canada 101 South Korea 74 Poland 73 Russia 45 Projects in Germany (2015-19) By Investment Sector Other Sectors, 29% ICT & Software, 21% Chemicals, Plastics & Paper, 6% Business & Financial Services, 14% Textiles, 9% Industrial Consumer Goods (incl. Food & Beverages), 10% Machinery & Equipment, 11% Source: GTAI 2020, reported by fDi Markets 2020 AHK German Industry and Commerce Ltd. 德國工商會有限公司 Source: GTAI 2020, reported by fDi Markets 2020 FDI projects refer to greenfield and expansion investment projects (M&A not included) © 2021. For information, contact Deloitte China. 7#8CHINA & HONG KONG Greenfield Projects in Germany Number of Projects from China (incl.HK) (2011-2019) 126 98 139 190 260 281 218 188 154 Facts in 2019 China is the top 4 country investing in Germany accounting for 7% of all foreign greenfield projects Germany ranks 2nd among European countries for Cumulative Value of Chinese FDI transactions Top 4 Chinese Cities/Provinces investing in Germany: Beijing24%, Shanghai14%, Zhejiang12%, Guangdong11% ► Hong Kong records 42 new greenfield projects in Germany between 2015-2019 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: GTAI 2020, reported by Federal States AHK German Industry and Commerce Ltd. 德國工商會有限公司 © 2021. For information, contact Deloitte China. 80#9CHINA & HONG KONG Greenfield Projects in Germany Chinese (incl. HK) Projects by Sector (2015-2019) Others, 22% Chemicals, Pharmaceuticals &. Life Science, 5% Business & Financial_ Service, 8% Electronics & Semi- conductors, 20% Industrial Machinery & Equipment, 16% ICT & Software, 10% Automobile, 11% Consumer Goods, 8% German Industry AHK and Commerce Ltd. 德國工商會有限公司 © 2021. For information, contact Deloitte China. Chinese (incl. HK) Projects by Business Activities (2015-2019) Others, 6% Headquarter, 8% Business Service, 8% - Manufacturing+R&D, 18% Sales, Marketing & Support, 55% 9#10CHINA & HONG KONG Companies in Germany Number of Companies and Employees By Federal States Hamburg Companies: 500 Employees: 4,800 North Rhine-Westphalia Companies: 1,530 Employees: 26,700 Hessen Companies: 860 Employees: 8,600 Baden-Württemberg Companies: 490 Employees: 1,800 AHK German Industry and Commerce Ltd. 德國工商會有限公司 © 2021. For information, contact Deloitte China. 5,400 Chinese & Hong Kong companies in Germany with 105,000 Employees Berlin Companies: 260 Employees: 1,430 Federal State Companies Employees Rheinland-Pfalz 390 1,479 Niedersachsen 215 7,900 Schleswig-Holstein 110 1,150 Brandenburg 105 3,850 Bremen 90 Bavaria Companies: 640 Employees: 25,300 Saxony 65 Saxony-Anhalt Saarland Thuringia Mecklenburg-Vorpommern 25 8533 22 5,50 3,640 30 655 30 1,240 560 20 80 Source: GTAI 2020 10 10#11Tax 税务 © 2021. For information, contact Deloitte China. Presentation title 11#12Overview of German Corporate Tax System AKU Tax rates are stable since 2008 2008*1#BÈ Corporate income tax (CIT) rate (CIT and trade tax (TT)) Participation exemption Net operating loss (NOL) carryforward Tax consolidation Controlled foreign company (CFC) rules Withholding tax (WHT) on dividends WHT on interest WHT on royalties Stamp duties Tax treaties Bookkeeping outside of Germany 15.825% CIT (including the solidarity surcharge) + the local trade tax, ranging from 7%-17% (average 14%) = average 30% rate 95% participation exemption for dividends (10%/15% minimum shareholding) and capital gains (no minimum shareholding) Indefinite (but subject to the change-in-ownership rules); annual utilization limited to EUR 1 million + 60% of the amount exceeding current-year profits Available where there is a parent-subsidiary relationship; a profit and loss pooling agreement (PLPA) is required Yes, but only with respect to low-taxed (<25%) passive income 26.375% - different rate might apply according to double tax treaty or EU directive Generally none 15.825% - different rate might apply according to double tax treaty or EU directive No Approx. 100 tax treaties (including China). There is currently no tax treaty with Hong Kong. Bookkeeping outside of Germany is only possible after formal approval by the German tax authorities © 2021. For information, contact Deloitte China. 12 12#13Developments on EU level 欧盟层面的发展 © 2021. For information, contact Deloitte China. 13 13#14DAC6 欧盟强制税务报告制度 Broad disclosure rules 广泛的规则披露 •V6 of the EU Directive on administrative cooperation (EU MDR, DAC6) • Aims to provide new information on potentially harmful tax practices Rules • New disclosure obligations for EU intermediaries and taxpayers in relation to reportable cross-border arrangements (RCBA) • An EU entity is an Intermediary where it acts as a promoter or service provider of an RCBA towards relevant taxpayers (including group entities) IMY RCBA Meets Hallmarks A - E • An entity is a relevant taxpayer where it benefits from RCBAs and may have to report if the intermediary does not or cannot (e.g. non-EU) © 2021. For information, contact Deloitte China. TAXPAYER 14#15DAC6 欧盟强制税务报告制度 Covering 5 'Hallmarks' 55 A-Confidentiality, contingent fees, standardised documentation B-Loss-buying, income conversion, circular transactions C - Deductible cross-border payments, double depreciation/tax relief, preferential tax regimes Main Benefit Test The main benefit or one of the main benefits [...] a person may reasonably expect to derive [...] is the obtaining of a tax advantage © 2021. For information, contact Deloitte China. D - Beneficial ownership/common reporting standard E - Transfer pricing: unilateral safe harbours, transfer of hard-to-value intangibles, transfers with >50% EBIT reduction No Main Benefit Test 15#16VAT-eCommerce 增值税-电子商务 Goals of the VAT e-commerce package 电子商务增值税方案的目标 Thoughts . Ensure VAT is charged and paid by non-EU established sellers • Ensure VAT is collected on goods sent from outside the EU © 2021. For information, contact Deloitte China. K Outcomes Core themes 1 Joint and several liability between marketplace and seller Either the sellers or the online marketplace/digital platforms comply and will be liable for the VAT 2 due on these sales Deeming the online marketplace/digital platform as the supplier 3 Data and information exchange 4) Introduction of specific digital services taxes (DSTs) for online marketplaces and digital platforms 16#17ATAD-Implementation Bill 反避税指令 (ATAD)实施法案 母 AA • • • • • ATAD = EU Anti Tax Avoidance Directive (Council Directive (EU) 2016/1164 of 12 July 2016; Council Directive (EU) 2017/952 of 29 May 2017 amending Directive (EU) 2016/1164). The ATAD rules had to be implemented into domestic law by 31 December 2018 and 31 December 2019. Measures of the ATAD include controlled foreign company rules (CFC), hybrid-mismatch rules, exit taxation rules, interest limitation and general anti-abuse rules. The ATAD-Implementation Draft Bill forsees also changes to the German Transfer Pricing Rules. So far no political consensus was reached to push this Bill forward. _ 10 December 2019 Issue of first draft of the ATAD- Implementation Bill _ 24 March 2020 Issue of the second draft of the ATAD-Implementation Bill 17 November 2020 Leaking of unofficial revision of the ATAD-Implementation Bill Today _ Still not in the legislative process © 2021. For information, contact Deloitte China. 17#18Brexit 英国脱欧 Summary of tax implications ¾¾ÓNE • There are no measures in the Free Trade Agreement between the EU and the United Kingdom to replace the effects of the Interest and Royalties and Parent-Subsidiary Directives. . For tax purposes the United Kingdom will be treated as a third country. • • The double tax treaty between Germany and the United Kingdom from 2010 will be applicable instead of EU Directives (e.g. parent subsidiary directive or interest and royalty directive). Under the double tax treaty Germany and the United Kingdom there is a 5% withholding tax right (in case shareholding above 10%) for dividends. Under the EU parent subsidiary directive there was a 0% applicable. • For royalties and interest in general there should be also no withholding tax right according to double tax treaty Germany and the United Kingdom. Germany's Ministry of Finance (MOF) published a protocol on 14 January 2021 signed with the UK that will amend the existing Germany-UK tax treaty, as well as a joint declaration with the UK, both dated 12 January 2021. The protocol will introduce additional anti-abuse provisions into the existing Germany-UK tax treaty that are similar to provisions of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), and the joint declaration announces negotiations beginning in 2021 for further amendments to the treaty. To enter into force, the protocol must be ratified by both Germany and the UK and the instruments of ratification will need to be exchanged. © 2021. For information, contact Deloitte China. 18#19Tax developments on German level 德国税务发展 © 2021. For information, contact Deloitte China. 19#20Annual Tax Package 2020 2020 Overview AA • The Annual Tax Package 2020 contains over 100 individual regulations covering the entire spectrum of fiscal law and amending a large number of items of legislation. It translates into law EU directives and court rulings, as well as regulating technical matters and correcting editorial errors. Changes include inter alia: . • Implementation of the EU VAT eCommerce Package from 01 July 2021. . • Increase of the statute of limitation in serious cases of tax evasion from 10 to 15 years. introduction of a lump-sum for working from home (home office) as deduction in the amount of EUR 5 per day which was spent exclusively working from home (max. EUR 600 per year) for the period 01 January 2020 to 31 December 2021. • Extension of Corona measures with regard to tax free speacial payment in the amount of EUR 1,500 to employees. No provisions with regard to ATAD implementation. • _ _ 17 July 2020 Draft Bill © 2021. For information, contact Deloitte China. _ _ 02 September 2020 Draft Law 09 October 2020 Statement by the German upper house (Bundesrat) O _ 28 December 2020 Entry into force - Publication in the German Federal Law Gazette 20 20#21Proposed tightening of German Real Estate Transfer Tax Rules 建议收紧德国房地产转让税务规则 RETT Reform on the horizon for share deals RETT ΔΙΔ Tightening of the RETT rules has been subject to discussion since 2019. It seems that the legislative process which was pending for a couple of months is becoming active again • • Based on a draft bill published on 30 July 2019, the proposed amendments of the RETT Act mainly include tightened rules on the taxation of share deal transactions involving German real estate The key aspects of the proposed RETT Reform are mainly in line with the discussion/first draft published in September 2018/May 2019 and include: Reduction of the RETT triggering threshold from 95% to 90% for share deals as well as transactions involving partnerships (while RETT applies to 100% of the property value) • Extension of the minimum holding periods for transfers of interests in partnerships from 5 to 10 years • Extension of the so-called retention/monitoring periods for certain exemptions for partnerships from 5 to 10 years • Extension of the so-called "partnership transfer rules" to share transfers in corporations, which could add significant additional complexity to the RETT rules (no exemption for publicly traded companies!) • At the moment it seems that there is no political consensus. There are discussions of decreasing the RETT triggering threshold further. _ 30 July 2019 Issue of first draft of the RETT Reform Bill © 2021. For information, contact Deloitte China. Today Still no final draft law 21#22ETT/ORIP: German Extraterritorial Tax Regimes ETT/ORIP: 德国域外税收制度 Background 背景 ATA Extraterritorial Taxation ("ETT") and Offshore Receipts in regard to Intangible Property ("ORIP") is the name given to a tax levied by a jurisdiction that applies to transactions involving intangible property ("IP") where: • Neither direct party to the transaction is tax resident in that jurisdiction; Neither non-resident entity has a local permanent establishment, an avoided permanent establishment under domestic law, or any other physical presence; and • The transaction is not executed in that jurisdiction. This taxing right is typically exercised as a result of: (i) the IP being registered in that jurisdiction; and / or (ii) the IP being used or exploited in that jurisdiction. ETT and ORIP can be distinguished as follows: • "ETT" applying to transfers of intangibles "ORIP" applying to payments or accruals for the use of intangibles © 2021. For information, contact Deloitte China. 22#23ETT/ORIP: German Extraterritorial Tax Regimes ETT/ORIP: Overview Scenario IPCo owns IP relating to various territories. The IP is licensed to Principal in exchange for royalties. Principal uses the licensed IP to manufacture products that it sells to local markets through local distributors. ORIP (or income ETT) Applies to royalty payments from Principal to IPCo. ETT (or capital ETT) Applies to transfer of IP from IPCo to Principal (or any other Licence payments potentially taxable IPCO ☐ Principal Local distributor © 2021. For information, contact Deloitte China. IP (deemed) transfer). Disposal Licence potentially taxable IPCO --++--- IP Principal Local distributor Acquisition of IP by Principal 23#24中国企业海外投资法律热点问题 © 2021. For information, contact Deloitte China. Presentation title 24#25整合和利用相关国家/地区的制度资源 一关注居民国/地区、东道国/地区、投资中介国/地区、离岸地的法律和税务机制,以及双边、多边的投资、贸易和税收 协定等制度资源。 温哥华 西雅图 加拿大 © 2021。欲了解更多信息,请联系德勤中国。 美国 纽约 特拉华州 百慕大 BVI 开曼 智 利 巴西 爱尔兰 伦敦。 荷兰 泽西岛 卢森堡 列支敦士登 东京 中国 上海 广州 *香港 海南 新加坡 澳大利亚 墨尔本 2020中国税务大会:专题D:中国企业海外投资并购重组相关的法律和税务热点问题 25#26(一)中国企业海外投资思路 规划在先/跨境架构先行 •中国企业进行海外投资,必须规划在先,设计适合的跨境法律架 构,整合和利用包括居民国/地区、东道国地区、投资中介国/地 区、离岸地在内的各种制度资源;避免零星、分散、不成体系的 海外投资。 在适宜的国家/地区 搭建海外投资管控平台 ·对于海外投资较多的中国企业,需在合适的国家/地区搭建海外投 资管控平台公司,实现海外投资统一管理、与境内母公司有机联 系、资源集中调度以及税务优化等效果。 跨国公司架构 ·对于海外投资在集团所占比例很高的企业,考虑将整个集团公 司打造成跨国公司架构:在全球范围内设立区域中心、重新规划 布局财务、研发、IP、生产、销售、人力资源等。 © 2021。欲了解更多信息,请联系德勤中国。 2020中国税务大会:专题D:中国企业海外投资并购重组相关的法律和税务热点问题 26#27(二)中国企业海外投资法律尽职调查若干要点 外资准入规制、行业准入规制 拟投资的国家及行业是否允许外资进入 外汇管理 ·拟投资国家是否存在外汇管制 土地权属情况 • Title Search, 关注土地性质:工业用地、农业用地 •在一些国家,关注拟投资标的所有土地是否存在原居民请求权或原居民对标的地块的诉求 ·对于近现代政权多次更迭的国家,关注现在的法律体制是否承认过往政权颁发的土地权属证书 人事、劳动用工情况 • 管理层是否有金降落伞条款;管理层是否有同业竞争、商业秘密保护的限制 听取工会意见 • 听取当地宗教组织意见(如有) 知识产权调查 |环保 • 知识产权种类及布局情况调查:关注专利、商标、专有技术等 权属保护情况调查:权属保护是否充分,是否存在被侵权的情况,是否存在侵犯别人知识产权的情况 . 除了要核查必须的环保批准手续外,必要时还需征求当地有影响力的环保组织的意见 其他合规要求: 经济实质法案 • 国际“反洗钱、反恐怖融资、反逃税” © 2021。欲了解更多信息,请联系德勤中国。 2020中国税务大会:专题D:中国企业海外投资并购重组相关的法律和税务热点问题 27 27#28(三)中国企业海外投资法律审查要点——以医疗领域海外并购为例 2 对主体的审查要点 目前各地相关海外投资审批备案部门对中国企业 海外投资存在不同程度的审查要求。 从主体角度,中国企业海外投资需对包括境内投资 主体、境外被投主体在内的不同审查事项予以关 注: 境内投资主体审查要点示例: √ 境内投资主体企业类型(有限公司/合伙企业) √ 境内投资主体财务状况 √ 境外投资金额 境内投资主体的信用情况 境外被投主体审查要点示例: √ 是否敏感国家 √ 是否敏感行业 √ 路径公司企业性质(包括经营范围等) √ 最终目的公司基本情况 √ 最终目的公司原股东情况 最终目的公司历史合规情况 对目标公司的审查要点 新冠疫情在全球爆发,对全球经济影响深远,中 国海外并购数量大幅度下降,只有医疗领域的海 外并购逆势成长。 以医疗领域海外并购为例,中国企业海外并购需 对目标公司的如下事项予以关注: 示例: ✓ 境内机构海外投资审批以及境内资金出境是否办妥审批 目标公司所在地国家投资法律环境(是否有反垄断要求、是否有国家安全审查、是否强 制要求投资方的信息等) 对目标公司所在行业以及生产产品的资质与许可(药品是否具备生产许可证书以及是否 具备上市许可,药品许可与上市许可是否分离等 √ 知识产权(核心资产、发明专利、专利许可限制以及要求等) 商业贿赂(是否符合东道国反腐规定、是否符合目标公司内部规定等) √ 重大合同(关键技术许可合同、交叉许可合同、非替代性原料供应合同、融资合同、关 联方担保合同、重大依赖客户的销售合同等) 劳工问题(当地劳工法规定、目标公司工会组织等) © 2021。欲了解更多信息,请联系德勤中国。 2020中国税务大会:专题D:中国企业海外投资并购重组相关的法律和税务热点问题 28#29(五)外商投资跨行业交易规则已收紧-以德国外商投资审查制度为例 德国外商投资审查制度简介 问 ^ 法律依据 主管机关 审查门槛 类型 • 《对外贸易和支付法》 德国联邦经济与能源部 • 《对外贸易和支付条 收购德国公司10%(针对部 分敏感行业)或25%以上的 投票权 特定行业审查 • 跨行业审查 例》 (修订中) ·外资公司通过其直接或间接 有投票权的德国企业实施并 购 © 2021。欲了解更多信息,请联系德勤中国。 2020中国税务大会:专题D:中国企业海外投资并购重组相关的法律和税务热点问题 29#30(五)外商投资跨行业交易规则已收紧-以德国外商投资审查制度为例 德国外商投资审查制度发展趋势 . 审查门槛降至收购德国公司10%的投票权 审核门槛降低 ·引入欧盟《外商直接投资审查条例》的合作机制 审核权力和范围扩大 德国联邦经济与能源部将能够以限制性方式进行交易干预,以确保国家安全。 ·审查范围扩大至“可能”对公共安全或秩序造成威胁 需进行报告的行业/交易目录被扩展,如人工智能、机器人技术、半导体、生物技术和量子技术等领域 ・所有应报告交易须经德国联邦经济与能源部审查程序完成才能生效 临时无效制度扩大化 . 临时无效制度将适用于跨行业投资管制 未授权交割面临严厉制裁 © 2021。欲了解更多信息,请联系德勤中国。 ·收购方未经德国联邦经济与能源部授权访问德国公司敏感信息可能被视为未授权执行/交割 ·故意行为将作为刑事处罚被处以五年以下有期徒刑(相关受处罚人员包括允许执行/交割发生的人员) ·过失行为将被视为行政违法行为,罚款最高为500,000欧元。 2020中国税务大会:专题D:中国企业海外投资并购重组相关的法律和税务热点问题 30#31(五)外商投资跨行业交易规则已收紧 应对建议-以德国外商投资审查制度为例 提前了解和充分考量 充分考量 提早了解《对外贸易及支付法案》和《对外贸易及支付条例》及其修 订 分别从卖方和买方角度充分考量新规则,尤其是新规 对投资和撤资行为的重大影响 尽早申报 如果交易满足审查条件,相关交易方应通过申请预先 无异议证明等可能的方式,尽早发出必要的申报通知 © 2021。欲了解更多信息,请联系德勤中国。 谈判和起草交易文件 充分考虑到愈加严格的规则和相关的不确定性,如签署 和交割环节之间的时间跨度延长给交易双方带来的不确 定性和困难。 必要时借鉴从处理和应对反垄断法要求、法规和执行禁 令中获得的、以及有关撤销权或撤回权的经验。 2020中国税务大会:专题D:中国企业海外投资并购重组相关的法律和税务热点问题 31#32Q&A © 2021. For information, contact Deloitte China. Presentation title 32#33Contact details Claus Schuermann Managing Director Germany Tax Services Deloitte AP ICE., Ltd. Phone: (852) 2238 7884 E-mail: [email protected] Office: Hong Kong Merten Zenker Tax Manager Germany Tax Services Deloitte AP ICE., Ltd. Phone: (852) 2238 7801 E-mail: [email protected] Office: Hong Kong Wolfgang Ehmann Acting Chief Representative / Executive Director German Industry and Commerce Ltd. Phone: E-mail: (852) 2532 1213 [email protected] Office: Hong Kong Alexander Fischer International Partner Deloitte Legal Rechtsanwaltsgesellschaft mbH Hilton Yin Senior Associate Shanghai Qin Li Phone: +(86) 21 2316 6542 Email: [email protected] Office: Shanghai © 2021. For information, contact Deloitte China. 33#34Deloitte. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), its global network of member firms, and their related entities (collectively, the "Deloitte organization"). 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