VDA positions
Company cars – against restricting the deduction of input tax
Position on the draft annual tax law 2009
There is the threat of increased taxation on company vehicles used by an entrepreneur for both business and private purposes. The draft annual tax bill 2009 would restrict the deduction of input tax for these vehicles to 50%. This measure, which originated from Lafontaine’s tax reform in the form of the Tax Relief Act (Steuerentlastungsgesetz 1999/2000/2002) and was repealed in 2004, gives cause for serious concern in connection with taxation and employment policy.
No "ecologisation” of value added tax
Position on the EU consultation on reduced rates of VAT
The EU is considering extending the application of reduced rates of VAT to green products. In a survey by the European Commission we stated that such a measure would lead to considerable complications and distortion of competition.
Reform of inheritance tax
Position on the "draft bill for reforming the law on inheritance tax and assessment”
The automotive industry believes it is important that the reform of inheritance tax and gift tax should bring relief that helps to strengthen companies and to ensure that they continue to operate. This would also make a major contribution to securing jobs. On the other hand, the higher valuation of property in land and operating capital prescribed by the German Constitutional Court must not be allowed to increase the tax burden.
Sale-and-buy-back transactions in the automotive industry
Position on the draft of a revised position of the Institute of Public Auditors in Germany (IDW) on accounting: Specific Issues relating to Transfer of Beneficial Ownership and Revenue Recognition in accordance with HGB (IDW ERS HFA 13 n. F.)
The sale-and-buy-back transactions in the automotive industry are fundamentally different from others detailed in the IDW position (HFA 13). For example, automotive manufacturers do not sell the vehicles to leasing customers to improve their balance sheets. Such sales do not represent the realisation of hidden reserves or an improvement in the balance-sheet structure. The sale-and-buy-back transactions in the automotive industry are designed so that both ownership under civil law and the beneficial ownership are transferred to the purchasers (car rental customers).
Corporate taxation reform
Position on the "draft corporate taxation reform bill 2008”
The automotive industry views the reform of corporate taxation as a basically positive move. Reducing the rate of corporate income tax, and the various relief measures for partnerships, can go a long way to improving the competitive situation for German industry and making Germany more attractive in relation to taxation. Improved general conditions for corporate taxation form the basis for continued economic recovery, with more growth and employment. However, the draft corporate taxation reform bill 2008 that has been presented contains a significant number of measures that run contrary to the effort put into relieving corporate burdens and enhancing Germany as a business location, which have to be corrected.
