Solutions for § 37b EStG issues

Whether it's a summer party, Christmas party or company anniversary - the correct tax classification of events, hospitality and non-cash benefits often presents companies with challenges.

There are numerous occasions that fall under the provisions of Section 37b EStG and a large number of them can be legally complex. This is partly due to the large number of relevant tax types and regulations and partly due to the different players involved in the process. Complex tax law requirements and a lack of standardised processes in the company can lead to errors and omissions. Media disruptions, high manual effort and different procedures from department to department harbour additional risks. To make matters worse, several types of tax can be affected at the same time with flat-rate income tax and social security, income tax and VAT, and various legal requirements must be observed. This presents even tax-savvy employees with additional challenges.

Ready to talk? Contact us

Things can quickly go wrong when it comes to the taxation of events, benefits or hospitality. Our solutions improve compliance throughout the entire process.

Marco Strootmann

Partner, Tax, Payroll Tax Services

KPMG AG Wirtschaftsprüfungsgesellschaft

Overview of tax types

Flat-rate income tax and social security
- Flat-rate regulations
- Differentiation between cash wages and benefits in kind
- Allocation for mixed events
- Gratuities vs. gifts
- Categorisation of participants
- Application of the VIP box decree
- Differentiation from business travel expenses

Income tax (non-deductible operating expenses)
- Requirements for a hospitality voucher
- Differentiation between business associates and hospitality, especially in a group of companies
- Gifts vs. promotional items

Value added tax
- Input tax corrections
- Value transfers free of charge
- Exemption limits and allowances

Different possible solutions

There are various tools available to support you in managing your Section 37b EStG matters. Get to know the various solutions with which you can easily handle all tasks related to correct tax assessment. Three different approaches, tailored to your needs, ensure that your tax department is relieved and compliance requirements are easily met. We will be happy to advise you on which solution best suits your requirements.

KPMG Incentive Manager
CITAX - Compliance Inventives and Tax Management von DCCS
KPMG Managed Services

Your uncomplicated tool for reporting, tax evaluation and further processing of events etc.

The KPMG Incentive Manager can be introduced quickly and easily. With clear workflows and integrated decision-making, we support you in harmonising your processes with a powerful standard product. In addition, this solution offers many customised configuration options. If required, it is possible to link the KPMG Incentive Manager with ERP, payroll and salary accounting systems. Another advantage is that maintenance and technical support are provided by KPMG, while the running costs for the platform are kept to a minimum. Thanks to the complete documentation and effective control mechanisms, you can always trace tax-relevant processes, even at a later date. The KPMG Incentive Manager offers a predefined sequence of tasks and a clear set of rules to ensure compliance, including calculation of the monetary benefit per employee or case.

Arrange a demo appointment now

Your advantages:

Low running costs
Professional maintenance and ongoing professional support by KPMG
Low implementation costs
Interfaces to other programmes possible

§ 37b EStG Sachverhalte einfach erfasst

Versteuern Sie korrekt mit dem KPMG Incentive Manager

Download

The solution, which can be integrated by SAP, offers support throughout the entire process

A key advantage of the solution from our partner DCCS is the strong integration into your SAP system. CITAX accesses your source systems right at the start of the process and offers a multi-stage reporting process. The tax calculation is largely automated. All processes are documented centrally by the tool and can therefore be traced at any time. CITAX maps the entire incentive management process: from the planning of an event or non-cash benefit to the correct tax assessment and the corresponding processing in payroll accounting and posting in financial accounting. Finally, you benefit from very extensive evaluation options with person and transaction-related analyses, an overrun list, gift list and tax auditor evaluations.

Arrange a demo appointment now

Your advantages:

Many technical interfaces possible
SAP integration: relevant documents are recognised by CITAX
Extensive automatic calculation
Multi-stage workflow
Extensive evaluation options

Simply delegate your §37b EStG management to us and we will take care of the necessary tasks for you

Save nerves and resources - you can do both with our managed service solution: simply outsource the processing of your Section 37b EStG matters to our experts and we will take care of the entire tax assessment and documentation of benefits for you (flat-rate income tax, income tax, VAT, social security). All we need is input data from you. This significantly reduces the workload for your company. KPMG provides you with monthly output files that can be transferred to your payroll accounting and financial accounting. KPMG can also take care of the external wage tax audit with regard to benefits in kind.

Arrange a demo appointment now