With hybrid work becoming the new normal, many companies are wondering how to cultivate and foster a hybrid work culture. A survey found that 76% of HR leaders believe that hybrid work challenges their employees’ connection to organisational culture. Culture is certainly easier to foster in person; however, that doesn’t mean it’s impossible to cultivate… Read more »
It’s official: EVs are now exempt from Fringe Benefit Tax (FBT) in Australia for a limited time! The Treasury Laws Amendment (Electric Car Discount) Bill 2022 officially passed in December 2022. This bill will allow company cars that are fully electric or plug-in hybrids to be free from FBT. FBT is a tax that is… Read more »
We all know the importance of onboarding, but you can’t forget offboarding. While less exciting and indeed sad, offboarding is an essential and crucial part of the employee lifecycle. Just like onboarding, offboarding involves both personal and professional tasks to successfully transition an employee out and efficiently set up for the employee coming in. Offboarding… Read more »
Italy Business Culture When you think of Italy no doubt you would think of these three things; pizza, pasta, and coffee. Or maybe you think of Fendi, Fiat, Ferrari, Gucci, Leonardo Da Vinci? There are no bounds to Italy’s exports – even its food is considered the most popular cuisine in the world. But do… Read more »
For more than 15 years, Real I.S. Australia has built an impressive portfolio of AU$1.35 billion and over 160,000 square metres. In 2022, they closed the largest commercial property deal in Canberra, selling the state-of-the-art Geoscience Building for AU$363.5 million.
Conflict in the workplace is always a tumultuous experience. It ruins morale, lowers productivity, and creates a toxic office environment. When you have the walls of a screen in the middle, it’s all the more difficult. Remote and hybrid work have their pros; they have been shown to improve productivity, reduce stress, and provide work-life… Read more »
In Australia, there are 8 national public holidays observed as part of the National Employment Standards (NES) that underpin employment throughout the country. In addition to these key dates, some states and territories also have additional regional public holidays or substitute public holidays. Substitute public holidays mean that if a public holiday falls on… Read more »
France observes and celebrates a number of holidays throughout the year, whether religious holidays, seasonal holidays, or national holidays relevant to the history of France. Should your foreign business have a presence in France, it is important to keep on top of all public holidays from a HR compliance perspective. For ease, we’ve summarised all… Read more »
Pets bring a lot of joy to the office. A 2012 study has shown that they reduce stress and increase productivity – boosting employee wellbeing; your friendly pooch is not just man’s best friend but an office cheerleader. While it’s great to have pets in the office for both your employees and their furry friends… Read more »
A modern award is a set of minimum terms and conditions for employment in Australia. If you have or are planning to open a business in Australia, you must already know about “modern awards”. They are one of the most important documents in employment in Australia and apply to both employers and employees and failure to… Read more »
Located in the northern part of central Europe, Germany is officially known as the Federal Republic of Germany, Deutschland or Bundesrepublik Deutschland. It is one of Europe’s largest countries. It covers the area between the Netherlands, Belgium, Luxemburg, France, Switzerland, Austria, Czech Republic, Poland, Denmark, the Baltic Sea and the North Sea.
There are 16 German states, each with their own head of government, legislature and government party coalitions.
The German population is roughly 79.9 million people. With a life expectancy of almost 82 years and a steady decline in the birth rate to 1.5 births per woman, the country is now spending close to $265 million every year in an attempt to reverse the declining population. The population growth rate is currently around the 0.2 per cent mark but is expected to dip into the negatives by 2025.
Germany is the largest economy in Europe and the 4th largest in the world with a GDP of approximately 4.238 trillion USD. Economic growth remains steady around 2% annually. Inflation has been slowly increasing to 2.0% from 0.4% in 2016.
Germany continues to experience large fiscal surpluses, which in turn has led to the steady decline of the public debt ratio.
With a strong financial system, low unemployment, low public debt and a highly-skilled workforce, the driving force of the German economy has shifted from exports to consumption and investment. Germany is the largest consumer market in Europe and much of its trade is focused on some of the world’s largest trade events, including MEDICA, the Hannover Fair, Automechanika and the ITB Tourism Show. For these reasons, many companies seek to base their European / international expansion in Germany.
With strong trade ties primarily with Europe, but also with Asia and the US. The export value in 2017 was $1.33 trillion, while imports came in at $1.08 trillion.
The country is primarily focused on exporting manufactured goods, with a focus on transportation for products such as cars, vehicle parts and planes, helicopters and/or spacecraft. Machinery and medical products also make up a large portion of German exports.
Germany’s largest trade partner, in terms of exporting its goods, is the United States, followed by France, China and the rest of the European Union. In terms of imports, China accounts for 10%, followed by much of the European Union and the United States.
Top imports into Germany include many of the same goods exported from the country, including machinery, transportation and chemical products.
As part of the European Union, Germany enjoys free trade with the rest of the European countries and is able to negotiate trade agreements with the backing of the EU. There are agreements with Vietnam, New Zealand, Australia, Singapore, Mexico, Japan, Canada and the Mercosur group in focus, but also many more currently in play.
Expanding to Germany? Here is a breakdown of the key things to keep in mind.
There are many ways that a business can be set up in Germany. International companies might choose to register a branch office, open a subsidiary, or form a general / limited partnership.
Most of the population, over 60% of the German workforce, is employed by SMEs. The unemployment rate is currently around 5.3%, which has fallen by 1% over the last 3 years.
German employment laws tend to be more favourable towards the employee in terms of termination protection, applicable collective bargaining agreements, and holidays.
Grants are available to businesses looking to recruit and employ people unable to work due to personal circumstances, such as disability or long-term unemployment.
From Germany, companies have access to the European talent pool. All EU citizens are able to work in Germany without a visa. Those recruited from outside of the EU are required to apply for and obtain a residence permit in order to work and live within Germany for more than 3 months. The visa is obtained from the German embassy consulate in the applicant’s country of permanent residence.
Payroll in Germany requires companies to obtain an employer number and registrations from the country’s tax and social security authorities. Employment law encompasses the employees right to join a union, a minimum wage and legal entitlement to time off.
In terms of tax collection, it is the employer’s responsibility to calculate the amount of income tax for each employee. This amount should be withheld from gross payments each month and submitted to the appropriate tax office by the 10th of the following month.
Employers and employees must both contribute to social insurance, including health, pension, unemployment and nursing care.
In Germany, the financial year follows a standard calendar year, ending on 31 December. Corporation tax is 15.825% on company profits. Business can deduct expenses from computations of taxable income. The tax return must be filed electronically by 31 July of the following year. If working with a tax advisor, filing can be extended to the last day of February of the second year following the tax year.
VAT is applied on the sale of all goods and the provision of services at a rate of 19%, potentially reduced to 7% on certain transactions. A refund will be paid if the input tax exceeds the VAT.