Study 1 - The Consultant:
Mark W, a Business Analyst from the UK, had been living in Germany for 2.5 years as a permanent employee of a German based UK company. He was offered a lucrative 12 month contract with Siemens for 60 Euro’s an hour that he decided to accept. New to contracting and unaware of his payroll structure options in Germany, he contacted www.contractortaxation.com. We then discussed his particular situation: - 3 dependants - intention to stay in Germany longer than 183 days - involvement of a UK based recruitment company Then we contacted the 4 most suitable of our German based suppliers. They provided us with several payroll solutions that we then took back to Mark and his recruitment agent.
The UK based agency agreed to receive payment of their % from our suppliers (rather than directly from the end client) and us such Mark was able to utilise a more tax efficient structure, retaining 75% of his gross earnings, up from 55% when he was working in his permanent position.
Study 2 - Consultant Work Permit:
Kenny, an Oracle DBA from Sydney was offered a lucrative contract role for a major German Telco. Without possessing an EU passport and with the client not wishing to add to their headcount by sponsoring him as a permanent employee, Kenny’s recruitment consultant directly him to www.contractortaxation.com. With all of our suppliers able to sponsor suitably skilled candidates on German Work Permits (so long as they possess a contractor offer) the question was simply which of the payroll structures proved most tax efficient for him. Kenny was able to commence his German adventure with the appropriate Work Permit within the timeframe provided.
Study 3 - The Recruiter:
A UK based recruitment consultant James Hamilton-Brown had located the perfect candidate for his client, the Frankfurt office of a French Bank. However the candidate was a New Zealand citizen working in London. With the candidate not in possession of an EU passport and the client not willing to hire and sponsor the candidate directly they were left at an impasse. Fortunately, a colleague of the agent recommended they contact www.contractortaxation.com as they had been in similar predicament only weeks earlier. We were able to put the candidate in contact with several of our suppliers that are able to sponsor skilled contractors in Germany. They were able to step into the breach and secure the candidate a Work Permit with the added bonus of ensuring the candidate was able to maximise his earnings through a tax efficient payroll structure.
Study 4 - The Employer:
SBF an IT outsourcing company from Chile had won a project to assist a Munich based IT Consultancy with a systems upgrade at one of their client sites. SBF needed to bring in 4 staff from Chile to interface with both the client and the IT Consultancy. The project was to last up to 2 years so his staff would have to be payrolled and sponsored by a local company as SBF didn’t have local legal, accounting and human resource capabilities. Our local partner was able to assist them by taking on the staff as a 3rd party, providing all specialist tax and immigration advice. Please note these studies are used for information purposes only and any resemblance to persons real or imagined is purely incidental.