Tax issues relating to your sustainability strategy

Climate protection and sustainability in the sense of ESG are gaining political and social importance - this also affects tax issues: not only under the aspect of "governance", but also in the fields of action "environment" and "social", there are starting points for tax measures.

The EU Green Deal and other EU tax packages present companies with new challenges. Although environmental taxes such as the CO2 and plastic taxes plastic taxes have not yet been implemented in Germany, companies must prepare themselves. For another instrument, the Carbon Border Adjustment Mechanism (CBAM) the reporting obligation has been in force since October 2023. The inconsistent implementation of tax laws within the EU and in other third countries makes it difficult to be and remain compliant in terms of governance. 

Sustainability aspects are also increasingly found in reporting obligations: With the introduction of the GRI 207 “Tax” Standard, companies reporting according to the GRI Standard already had to publish tax information in the sustainability report. In the next step, the EU plans to make reporting mandatory for all companies with a turnover of more than 750 million euros from 2025/26 with the "Public CbCR". In addition, more and more rating agencies are taking up ESG issues and also looking at the tax policy. All this favours ESG-initiated changes in supply chains. These may also have an impact on transfer prices or the transfer pricing model, as well as on indirect taxes and customs.

When looking at social aspects, one quickly arrives at the trend topic of "flexibilisation of international work opportunities". “Work / Hire from Anywhere” touches on a multitude of tax issues such as wage tax including travel expense accounting, social security, work permits and even the risk of establishing a permanent establishment. Therefore, many compliance rules have to be examined very closely. The new working models also have an impact on social aspects, for example by improving equal opportunities. And they also have a positive impact on the environment - for example by saving on journeys to the workplace.