COMING TO AN EMPLOYEE`S GUIDE

September 2014

COMING TO GERMANY 3

TABLE OF CONTENTS

Table of Contents 3 and Levies 11 Introduction 4 11 The German Tax System 5 Solidarity Surcharge 11 Tax residency rules 5 11 The tax year 5 Tax classes 11 Married taxpayers 5 Social Security 12 5 Employees on secondment 12 Special tax relief 6 Social Security Agreements 12 Types of income 6 (EU) / European Economic Area Arriving In Germany 7 (EEA) / Switzerland (CH) 12 EU Nationals 7 Unilateral Social security treaties 12 Non-EU Nationals 7 Other Taxes and Issues 13 Registration 7 13 Child benefits 7 Stock options / Share schemes 13 Tax Compliance 8 Company cars 13 Annual income tax return and assessment 8 Agreements 14 Tax liability procedure (taxation of worldwide income) 8 Appendix A 15 Tax liability procedure Sample tax calculation for the year 2014 15 (taxation of German sourced income) 8 Appendix B - Double Taxation Agreements 16 Claiming relief and allowances 8 Appendix C - Social Security Agreements 17 Leaving Germany 10 Reporting departure 10 4 COMING TO GERMANY

INTRODUCTION

This guide is general in nature and you should not act upon information This guide is intended for contained in it without seeking professional advice based upon your individuals moving to Germany personal circumstances. BDO Germany’s Payroll and Global Expatriate Services practice offers a for employment purposes. It full range of services to employees moving to Germany - whether on a temporary or permanent basis. We would be pleased to discuss any aims to provide an overview of aspect of this guide and provide you with further information. the main German tax Details of our main specialist contact in Germany are listed at the end of this guide and details of our offices in your host country can be found at features and issues that affect www.bdo.de. employees working in Germany and is current as at the date publication. COMING TO GERMANY 5

THE GERMAN TAX SYSTEM

Tax residency rules The tax year Residents of Germany are subject to taxation on their worldwide income. The tax year equals the calendar year. Employment income is taxed Individuals not resident in Germany are subject to tax only on income in the year for which it is paid. In deviation of this general rule, special derived from German sources. In a transfer year, the taxable income payments (like one-time payments but not the regular salary) are taxed of the resident and non-resident period has to be added together. in the year in which the payment or benefit is actually received (e.g. Therefore, only one tax return is filed for both periods. For tax purposes, bonus payment 2014 which is paid in January 2015 will be taxed in 2015). individuals are considered as German residents if: Married taxpayers a. they obtain a dwelling in Germany (irrespective of whether it is Married taxpayers may choose between filing jointly (“Splitting- rented or their own property) and retain and use it as a dwelling or Verfahren”) or separately. Generally, it is more advantageous to file b. they have their habitual place of abode in Germany. This means a jointly if the income of the spouses differs considerably. However, the continuous presence of more than six months (e.g. from October for married couples is only granted if both husband and wife are 1st to April 15th, even with three weeks of Christmas holidays in residents of Germany (an exception is available for EU-nationals under the home country). certain conditions - see above). Income earned by dependent children is not included in the joint tax return. They are liable to file their own tax In case an employee moves to Germany within the calendar year, the return if their income exceeds certain thresholds. foreign income earned before becoming a German resident will have to be considered for progression clause purposes. This means that such Taxable income foreign income is not directly taxed in Germany, but it will increase the Taxable income covers income from: individual’s personal . The same applies if the employee leaves yy Agriculture and forestry; Germany during the calendar year. yy or business; Non-residents can elect to be treated like a resident if their income yy Independent professions; from German sources is either at least 90 % of their worldwide income yy Employment; or if the non-German source income does not exceed the basic tax free yy Capital investment; threshold of € 8,354 (€ 16,708 for married couples). yy Rents and royalties and As a result, the non-resident can file a German income tax return and yy Other income (as defined by ). some, but not all, deductible items available for residents can be claimed. Any income not falling under these categories is not taxable (e.g. lottery The citizenship of the taxpayer is usually not relevant for determining gains). residency. However, under German tax law a special regulation for EU citizens or EEA member state citizens (Norway, Iceland and Liechten- The gross income received during a calendar year can generally be stein) exists. Upon application, an EU/EEA citizen who is considered tax reduced by income related expenses during the same period for each resident in Germany can file a joint tax return although his/her spouse of the above categories. Losses from one of the seven basic income is not a German resident but living in an EU or EEA member state. In categories - except capital investment - can be fully offset against such case, the favourable married filing jointly tax tables will become income from another income category (exceptions for “other income” applicable. may apply). 6 COMING TO GERMANY

The total income after deductions in each category represents the married couples filing a joint tax return. There is no possibility of deducting adjusted gross income, which may be further reduced by lump sum expenses in connection with the investment income. Foreign tax on deductions or, within limits, by actual payments for special expenses, investment income may be credited against the withholding tax when such as insurance payments or extraordinary burdens, to arrive at the filing an income tax return. taxable income. For the better understanding you can find a sample tax Nevertheless it is possible to declare investment income in the income calculation in Appendix A. tax return if the personal income tax rate is below 25 %. The tax office applies the lower personal tax rate and offsets the against Special tax relief the tax liability (so-called most favoured-test). If a Double is available (see Appendix B), special relief ( or ) is granted as well to avoid a potential double Investment income will be subject to the individual tax rate if this taxation. income belongs to another income category (e.g. trade or business).

Types of income Rental income Employment income Rents received less allowable expenses form part of taxable income. Under tax treaty provisions rental income from sources abroad is mostly Salaries paid or borne by a German employer or a German permanent exempt from taxation in Germany. Tax exemption with progression will establishment of a foreign employer are subject to wage tax, which is be applicable if sources are not located within EU/EEA. withheld by the employer and credited against the final annual income tax charge. Salaries which are paid by a foreign employer and recharged Capital gains to a German company are as well subject to withholding tax. The German company is deemed to be the “economic employer” and is The withholding tax with compensation effect on investment income obliged to calculate and transfer the appropriate wage tax to the tax also applies for capital gains deriving from the sale of shares, warrants, office on a monthly basis. Salaries which are paid by a foreign employer bonds etc. bought after December 31, 2008, irrespective of the holding but not recharged to a German company are generally not subject to period. withholding tax as long as there is no of the foreign employer in Germany. Tax for this income is levied by assessment Special rules apply where a taxpayer has an interest of 1 % or more in a generally following the first annual return. .

Self-employment income As a rule, any other sale transactions are taxable in Germany at individual progressive rates only if the sale is within one year (for Tax on from professional activities or from carrying on a trade movable assets) or ten years (for real estate property) after the purchase or business is collected by assessment. Quarterly prepayments might be date. These sale transactions are only taxable if the profit exceeds assessed on an estimated basis and credited against the final income tax € 600 per annum. Further tax relief may be applicable if the real estate burden. property was used for private purposes. Investment income On investment income a withholding tax with compensation effect is applicable. The rate amounts to 25 % income tax and 5.5 % solidarity surcharge on income tax. Church tax might be levied as well (8 % or 9 % of the income tax). There is, however, a tax free amount for investment income of € 801 for single filers and € 1,602 for COMING TO GERMANY 7

ARRIVING IN GERMANY

EU Nationals Child benefits EU / EEA and Swiss nationals coming to work in Germany benefit from Generally, an international secondee assigned by a foreign employer the privilege of the free movement of workers within the EU member to work temporarily in Germany could be entitled to child cash benefit states. As they can prove their legal residence in Germany by holding payments (“Kindergeld”) if several conditions are fulfilled. If the their valid passports and by registration of German place of residence employee is subject to taxation on worldwide income in Germany or at the registration office a certificate of freedom movement is no longer contributes to the German social security system, upon a formal request required. Swiss nationals have to obtain a residence card (“Aufenthalts- a monthly tax-free payment may be granted for dependent children aged karte”) for a stay of more than 3 months. up to 18 (and up to 25 for children in full-time education).

Spouses and dependant family members of EU citizens who are non-EU Amounts are as follows: nationals can also obtain a residence permit (“Aufenthaltskarte EU”), yy The monthly child benefit for the first and the second child amount if they register their address and provide proof of sufficient medical to € 184 each; coverage in Germany. yy For the third child € 190; and EU citizens from Croatia also have to register their place of residence but yy For any additional child it amounts to € 215 for each child. enjoy the right to freedom of movement solely with restrictions. For an interim period until June 30, 2015 they still need work authorizations In general, a payment is made for a child who is resident in Germany. unless they have a university degree or any other similar qualification EU / EEA citizens may apply for for a qualified job in Germany (requirements have to be checked in each individual case). Exemptions exist for providing services which are German child benefit if their children are living within the EU / EEA. subject to the EU directive of freedom of service. If the individual is not entitled to the child cash benefit, or if the tax Non-EU Nationals saving is more favourable, child allowances (“Kinderfreibetrag”) should be applied for on the tax return. The deductible amount is € 292 In principle, non EU / EEA nationals need to obtain a visa from the (single) / € 584 (married) per child per month. Child allowances are only German consulate before entering Germany. Visa are valid for a granted for children aged up to 18 (and up to 25 for children in full-time maximum period of 90 days. For a longer stay in Germany, a residence education). permit needs to be applied for at the local immigration office after entering Germany and before the visa expires. The type of visa (business travel or employment) depends on the intended activity in Germany.

Registration As an international assignee intending to reside and work in Germany one must register with the local registration office (“town-hall registration”) as soon as accommodation is rented or purchased. A written confirmation of registration will be issued.

Registration with the local social security authorities will be undertaken by the employer. If one remains covered under the home country social security system a certificate of coverage must be presented to the German employer (see below social security). 8 COMING TO GERMANY

TAX COMPLIANCE

Annual income tax return and assessment Examples include professional literature, commuting expenses, bank ac- Registration with the German tax office is not required but the individual count fees up to a specified limit, moving expenses not reimbursed by must register at the local registration office. After the end of the first the employer and certain expenses connected with a temporary need to calendar year in Germany a tax return must be filed with the local tax maintain two households. The above deductions are all subject to certain office. The normal deadline is May 31st, which is automatically extended conditions and restrictions. to December 31st if the tax return is prepared by a tax professional. Each tax return filer will receive an assessment notice from the local tax office. Special expenses The individual is usually assessed within two to six months after filing the The following expenses are deductible without limitation: tax return. yy Church taxes; yy Annuities due to legal obligations not connected with income; In the year of arrival the worldwide non-German source income must be disclosed for progression purposes (see: residency rules). yy Contributions to health insurance and nursing care insurances as far as these contributions refer to primary healthcare and nursing Tax liability procedure (taxation of worldwide income) care. After the end of each calendar year an income tax return can or must be Within limits, the following items are deductible: filed with the tax office. Whether a tax return needs to be filed or just can be filed depends on the individual tax situation of the impat. For the year yy 30 % of tuition fees (except for housing, care and food) of a private of arrival, there is no choice but a tax return filing obligation. school located in the EU / EEA countries or a German school if spe- cial tax relief for children is granted (see below) and if graduation is approved by the government. The special expenses which can be Tax liability procedure (taxation of German sourced claimed are limited to € 5,000 per child; income) yy Charitable donations for approved institutions located in Germany Non-residents can apply to be treated like a resident if their income from or the EU (if certain conditions are fulfilled); German sources is either at least 90% of their worldwide income or if the non-German source income does not exceed the basic tax free threshold yy Support for spouse living in Germany or another EU-member state of € 8,354 (€ 16,708 for married couples). This results in the fact that a (if certain conditions are fulfilled) after divorce or separation, up to non-resident can file a German income tax return and most, but not all, € 13,805 per annum, if taxed by spouse; deductible items available for residents can be claimed. yy Employee’s social security payments (except health care and nur- sing care insurance) in Germany and abroad and Claiming relief and allowances yy Contributions to certain other insurances (e.g. life, accident, lia- The following expenses are deductible in the year in which they actually bility insurance) if maximum amount is not already attained by incurred: contributions to health and nursing care insurance. Expenses connected with employment income In any event a standard deduction of € 36 for a single person and € 72 for Professional expenses (“Werbungskosten”) are deductible if they are: a married couple filing jointly is allowed without providing documentary yy effectively connected with the employment, evidence. yy documented, Extraordinary burdens yy not reimbursed on a tax free basis by the employer, and Extraordinary burdens, such as medical expenses, are deductible within yy incurred during the period of German tax liability. limits. In any event, a standard deduction of € 1,000 per annum is granted. COMING TO GERMANY 9

Standard deductions are allowed for extraordinary burdens such as: yy Payments to dependents (parents and children) with low income (documentary evidence of low income is required) if entitled by law. The maximum deduction is € 8,354 and may be reduced by the standard of living of the country and the personal income situation of the beneficiaries; yy Deductions for children in or abroad (within limitations) who are older than 18 and living outside the parent’s household amounting to € 924 per annum. If the child lives abroad, the amount may be reduced by the standard of living of the appropriate country; yy Further deductions may be granted, for example, for handicapped family members and expenses for a household help.

Special tax relief for children A standard deduction (child allowance) of € 292 (single) / € 584 (mar- ried) per month per child is granted for each child up to 18 years old, or even up to 25 years old if the child is still in education (no age limit is applicable if the child is handicapped). Otherwise a monthly tax free payment (“Kindergeld”) of € 184 for the first and second of € 190 for the third and of € 215 for the fourth child and further children is granted un- der certain conditions (see above). The tax authority will automatically assess the standard deductions if they are more beneficial than the tax free payments (“Günstigerprüfung”).

The standard deduction and child care lump-sum allowance are only available for such months in which the taxpayer is a German resident. The deduction may be reduced if the child lives abroad.

If certain requirements are fulfilled, actual expenses for child care can be deducted up to a maximum of € 4,000 per year / child for children younger than 14 years or for handicapped children if the handicap occurs before reaching the age of 25. 10 COMING TO GERMANY

LEAVING GERMANY

Reporting departure When German residence is abandoned and services are no longer performed in Germany, the tax office must be informed and a tax return for the entire calendar year must be filed after year end, subject to deadlines mentioned above. The worldwide non-German source income must be disclosed for progression purposes (see above: residency rules). COMING TO GERMANY 11

TAXES AND LEVIES

Income tax Germany has rates ranging as follows:

Tax Rate(s) % Taxable income range (Single) Taxable income range (Married) From (EUR) To (EUR) From (EUR) To (EUR) 0% 0 8,354 0 16,708 14% - 24% 8,355 13,469 16,711 26,938 24% - 42% 13,470 52,881 26,939 105,762 42% 52,882 250,730 105,763 501,460 45% 250,731 and above 501,461 and above Solidarity Surcharge The rate is 9 % or in some states 8 % of the amount of the income tax. In addition, a solidarity surcharge of 5.5 % is levied on the actual income The church tax is a deductible item for the determination of the taxable tax amount. income. A payment to foreign churches/communities may be deducted as a Church tax donation if a special certificate is issued by the community (“Spenden- An obligatory church tax is levied by the following religious communities: bescheinigung”). Roman Catholic Church, Reformed Church (Calvinist), Lutheran Church, Unified Church, Old Catholic Church, and the Jewish Community. The church tax is collected within the income tax/wage by the tax office respectively the withholding of wage tax of the employer. When registering at the local registration office every impat will be asked whether he / she is a member of a church. If they register as a member Tax classes of such a community they become automatically subject to church tax. The tax classes for wage withholding tax purposes are the following:

Status Tax class

Single or divorced / separated I Single or divorced / separated with at least one single child living in the same household II (if under certain conditions an allowance for single parents of € 1,308 is granted) III (spouse with higher income) and Married (only one spouse is working or the income of the spouse is significantly lower) V (spouse with lower income) Married (both spouses are working and the income level is almost the same) IV (both) Second or more employments or requirements to present a wage tax VI certificate to the employer are not met 12 COMING TO GERMANY

SOCIAL SECURITY

Based on the territoriality principle, all employees working in Germa- Social Security Agreements ny are generally subject to the German social security system, which European Union (EU) / European Economic Area (EEA) / consists of the following statutory insurances: Switzerland (CH) yy pension insurance(“Rentenversicherung”), EU / EEA / CH rules apply to an employee assigned to Germany by a yy unemployment insurance (“Arbeitslosenver-sicherung”), home country employer located within an EU / EEA / CH member state. yy health care insurance (“gesetzliche Krankenversicherung”), These rules are constituted in EU-regulation 883/2004. yy nursing care insurance and Where the assignment to Germany is less than 24 months and the yy occupational accident insurance. employee is not replacing an employee whose assignment in Germany has come to an end, the employee may remain in the home You can find the current rates (from January 1, 2014 on) below: country social security scheme. In this case, a certificate by the relevant yy Pension insurance: 18.9 % of gross salary up to a threshold of € foreign authority has to be obtained confirming that the employee is 71,400 p.a. (€ 60,000 p.a. for new eastern ); covered by the home country scheme (= A1-certificate). Employer and employee share the contributions equally. yy Unemployment insurance: 3.0 % of gross salary up to a threshold If this rule is not applicable, he/she may still be able to remain in his/ of € 71,400 p.a. (€ 60,000 p.a. for new eastern states of Germany); her home country’s social security system . A request must be filed with Employer and employee share the contributions equally. the competent authority in his/her home country and an A1-certificate needs to be issued. yy Health care insurance: 15.5 % of gross salary up to a threshold of € 48,600 p.a.; (Allocation: Employer 7.3 % / employee 8.2 %) Unilateral Social security treaties yy Nursing care insurance: 2.05 % of gross salary up to a threshold of € 48,600 p.a.; Employer and employee share the Unilateral Social Security Treaties have been concluded with a number of contributions equally. However, employees without children pay countries (see Appendix C). 1,275 % instead of 1,025 %. For Saxony, different rates apply. yy The occupational accident insurance depends on the industrial If the employee is assigned to work in Germany for an employer located sector and the accident risk; these contributions are borne by the in one of these countries, he/she may be exempt from contributing to the employer only. German social security system, in total or in part, subject to the treaty regulations. A certificate of coverage is required from the home country Employee contributions are tax deductable within the income tax return authorities. at certain limits.

Employees on secondment German social security does not apply to individuals on a “secondment” to Germany (“Einstrahlung”). “Secondment” in terms of German social security law is defined as follows yy Presence (work) in Germany for a limited period of time and yy Who work is exercised on behalf of a foreign (non-German) employer on his/her payroll and account. COMING TO GERMANY 13

OTHER TAXES AND ISSUES

Inheritance tax Company cars Inheritance tax is a tax on lifetime gifts and on transfer of value passing The provision of a company car which the employee is allowed to use for on death. Basically a person is liable to this tax if he/she is resident in private purposes as well constitutes a taxable benefit. Germany. Otherwise a person who is not resident in Germany is liable to this tax only in relation to his/her assets situated in Germany. The taxable benefit is calculated by 1 % of the gross list price of the new car per month, together with the cost of any extras and VAT. An extra Stock options / Share schemes amount of 0.03 % of the gross list price is added per month for each Stock options are basically taxed when exercised and are considered kilometre between home and work, on the assumption that the as employment income. Taxable income is computed at the time of employee regularly travels to work by car. It is possible to limit the tax exercising the option, normally as a difference between market price able benefit to the actual cost of private use, provided detailed records of of the shares and the exercise price. A tax exemption may be granted if the actual costs of the car are kept (by the company) and of the distance the activity for which the stock options were awarded was not or only driven (by the employee). partly performed in Germany and thus the employment income was not taxable in Germany. In this case the stock option benefit is sourced based on workdays between granting and vesting. 14 COMING TO GERMANY

DOUBLE TAXATION AGREEMENTS

Double Tax Treaties prevail over German national income tax law. The Despite the above principles, the right to tax the salary of an employee existing treaties with Germany are shown in Appendix C. remains with Germany if the individual is resident of Germany and: yy Is present in the other country for less than 183 days (physical Obviously, the tax treaties do not apply if both residence and source presence) within the other country’s tax year, calendar year or of income are located in the same country. Therefore, tax treaties are within a rolling period of 12 months (depending on the treaty), relevant if the employee is resident in country A but exercises activi- AND ties or receives income from sources in country B or if he/she maintains yy The salary is paid (borne) by or on behalf of an employer not residences in more than one country. resident in the other country, AND In general, the salary of an employee is taxed in the country of yy The salary does not need to be allocated to a permanent residence unless the work is physically performed in another country. As a establishment which the employer has in the other country. general rule, a person residing in Germany and working in another country is taxed in the other country and Germany will exempt the Where an international assignee has a residence in two or more salary from taxation. However, based on the domestic tax law, the tax countries, the employee is deemed to be resident of the contracting state exemption does only apply if the salary is actually taxed in the other in which he/she has the centre of his/her vital (personal and economical) country or if it can be proven that the other country waives the right interests. to tax the salary. The German tax authorities will ask for an appropriate proof. Germany will take exempt income into account when calculating progressive tax rates for taxable income (progression clause). COMING TO GERMANY 15

APPENDIX A

Sample tax calculation for the year 2014 related expenses exceeding lump-sum allowance of € 1,000, rental Facts and assumptions income from German sources of husband: loss of € 6,000 Married couple, two dependent children under 18 years Expenses

Income Church tax: € 1,735 (wage church tax) and donation of € 350 Employment: gross salary of husband of € 100,000, no employment

Tax computation € €

Gross salary 100,000 Lump-sum deduction employment related expenses (1,000) Income from employment 99,000 Rental loss (6,000) Net income 93,000 Deductions: Church tax (1,735) Donations (300) Insurance premiums (lump-sum deduction) (7,744) Child allowance (€ 7,008 per child) (14,016) Taxable income 69,205 Income tax 14,116 Solidarity surcharge 776 Church tax 1,129 Child cash benefit for two children (which needs to be refunded 4,416 as the child allowance was more beneficial) Total tax due (including refund of child cash benefit) 20,437 Less prepayments: Wage tax (21,158) Solidarity surcharge on wages (1,157) Church tax on wages (1,735) Total tax paid (24,050)

Total after (3,613) 16 COMING TO GERMANY

APPENDIX B - DOUBLE TAXATION AGREEMENTS Countries with which Germany currently has double-taxation agreements:

yy Albania yy France yy Luxembourg yy South Africa yy Algeria yy Georgia yy Macedonia yy Spain yy Argentina yy Ghana yy Malaysia yy Sri Lanka yy Armenia yy Greece yy Malta yy Sweden yy Australia yy Hungary yy Mauritius yy Switzerland yy Austria yy Iceland yy Mexico yy Syria yy Azerbaijan yy India yy Moldova yy Tadzhikistan yy Bangladesh yy Indonesia yy Mongolia yy Taiwan yy Belarus yy Iran yy Montenegro yy Thailand yy Belgium yy Ireland, Rep. of yy Morocco yy Trinidad and Tobago yy Bolivia yy Israel yy Namibia yy Tunisia yy Bosnia and Herzegovina yy Italy yy Netherlands yy Turkey yy Bulgaria yy Jamaica yy New Zealand yy Turkmenistan yy Canada yy Japan yy Norway yy Ukraine yy China, P.R.* yy Kazakhstan yy Pakistan yy United Arab Emirates yy Cote d’Ivoire yy Kenya yy Philippines yy United Kingdom yy Croatia yy Korea, Rep. of yy Poland yy United States yy Cyprus yy Kosovo yy Portugal yy Uruguay yy Czech Republic yy Kuwait yy Romania yy Uzbekistan yy Denmark yy Kyrgyzstan yy Russia yy Venezuela yy Ecuador yy Latvia yy Serbia yy Vietnam yy Egypt yy Liberia yy Singapore yy Zambia yy Estonia yy Liechtenstein yy Slovak Republic yy Zimbabwe yy Finland yy Lithuania yy Slovenia

* without Hong Kong and Macau

You can find the complete list here (in ): http://www.bundesfinanzministerium.de/Web/DE/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/staatenbezoge- ne_info.html COMING TO GERMANY 17

APPENDIX C - SOCIAL SECURITY AGREEMENTS In addition to the EU-convention 883/2004 which represents a Social Security Agreement between all of the EU and EEA member states, Germany has concluded unilateral social security treaties with the following countries: yy Australia yy Korea yy Bosnia und Herzegovina yy Macedonia yy Brazil yy Morocco yy Canada yy Montenegro yy Chile yy Quebec yy China yy Serbia yy India yy Tunisia yy Israel yy Turkey yy Japan yy United States This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO AG Wirtschaftsprüfungsgesellschaft to discuss these matters in the context of your particular circumstances. BDO AG Wirtschaftsprüfungsgesellschaft, its partners, employees and agents do not accept or assume any liability or of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. © 2014 BDO AG Wirtschaftsprüfungsgesellschaft HAMBURG (HEADQUARTERS) ERFURT LEIPZIG Fuhlentwiete 12 Arnstädter Straße 28 Großer Brockhaus 5 20355 Hamburg 99096 Erfurt 04103 Leipzig Phone: +49 40 30293-0 Phone: +49 361 3487-0 Phone: +49 341 9926600 Fax: +49 40 337691 Fax: +49 361 3487-19 Fax: +49 341 9926699 [email protected] [email protected] [email protected]

BERLIN ESSEN LÜBECK Katharina-Heinroth-Ufer 1 Max-Keith-Straße 66 Kohlmarkt 7-15 10787 Berlin 45136 Essen 23552 Lübeck Phone: +49 30 885722-0 Phone: +49 201 87215-0 Phone: +49 451 70281-0 Fax: +49 30 8838299 Fax: +49 201 87215-800 Fax : +49 451 70281-49 [email protected] [email protected] [email protected]

BIELEFELD FLENSBURG MUNICH Viktoriastraße 16-20 Am Sender 3 Leonhard-Moll-Bogen 10 33602 Bielefeld 24943 Flensburg 81373 Munich Phone: +49 521 52084-0 Phone: +49 461 90901-0 Phone: +49 89 55168-0 Fax: +49 521 52084-84 Fax: +49 461 90901-1 Fax: +49 89 55168-199 [email protected] [email protected] [email protected]

BONN FRANKFURT/MAIN ROSTOCK Potsdamer Platz 5 Hanauer Landstraße 115 Freiligrathstraße 11 53119 Bonn 60314 Frankfurt am Main 18055 Rostock Phone: +49 228 9849-0 Phone: +49 69 95941-0 Phone: +49 381 493028-0 Fax: +49 228 9849-450 Fax: +49 69 554335 Fax: +49 381 493028-28 [email protected] [email protected] [email protected]

BREMEN FREIBURG I. BR. STUTTGART Bürgermeister-Smidt-Str. 128 Wilhelmstraße 1 b Augustenstraße 1 28195 Bremen 79098 Freiburg i. Br. 70178 Stuttgart Phone: +49 421 59847-0 Phone: +49 761 28281-0 Phone: +49 711 50530-0 Fax: +49 421 59847-75 Fax: +49 761 28281-55 Fax: +49 711 50530-199 [email protected] [email protected] [email protected]

BREMERHAVEN HANNOVER WIESBADEN Grashoffstraße 7/KAP Landschaftstraße 2 Gustav-Nachtigal-Straße 5 27570 Bremerhaven 30159 Hannover 65189 Wiesbaden Phone: +49 471 8993-0 Phone: +49 511 33802-0 Phone: +49 611 99042-0 Fax: +49 471 8993-76 Fax: +49 511 33802-40 Fax: +49 611 99042-99 [email protected] [email protected] [email protected]

DORTMUND KASSEL WORLDWIDE Märkische Straße 212-218 Theaterstraße 6 Brussels Worldwide Services BVBA 44141 Dortmund 34117 Kassel Boulevard de la Woluwe 60 Phone: +49 231 419040 Phone: +49 561 70767-0 B-1200 Brüssel · Belgien Fax: +49 231 4190418 Fax: +49 561 70767-11 Phone: +32-2 778 01 30 [email protected] [email protected] Fax: +32-2 778 01 43 www.bdointernational.com DRESDEN KIEL Am Waldschlößchen 2 Dahlmannstraße 1-3 01099 Dresden 24103 Kiel Phone: +49 351 86691-0 Phone: +49 431 51960-0 Fax: +49 351 86691-55 Fax: +49 431 51960-40 [email protected] [email protected]

DUSSELDORF COLOGNE Georg-Glock-Str. 8 Im Zollhafen 22 40474 Dusseldorf 50678 Cologne Phone: +49 211 1371-0 Phone: +49 221 97357-0 Fax: +49 211 1371-120 Fax: +49 221 7390395 [email protected] [email protected] BDO AG BDO AG Wirtschaftsprüfungsgesellschaft Wirtschaftsprüfungsgesellschaft Hanauer Landstrasse 115 Katharina-Heinroth-Ufer 1 60314 Frankfurt am Main 10787 Berlin GERMANY GERMANY

Wolfgang Kloster Tax Partner Head of Payroll and Global Expatriate Services Phone: +49 30 885722-516 Fax: +49 30 885722-710 [email protected] www.bdo.de

Chairman of the Supervisory Board: Johann C. Lindenberg • Executive Board: WP StB RA Dr. Holger Otte (Chairman) • WP StB RA Werner Jacob (Vice Chairman) • StB Frank Biermann • WP StB Klaus Eckmann WP StB Dr. Arno Probst • RA Parwäz Rafiqpoor • WP StB Manuel Rauchfuss • WP StB Kai Niclas Rauscher • WP StB Roland Schulz Registered Office: Hamburg Amtsgericht Hamburg HR B 1981 Berlin • Bielefeld • Bonn • Bremen • Bremerhaven • Dortmund • Dresden • Dusseldorf • Erfurt • Essen • Flensburg • Frankfurt am Main • Freiburg • Hamburg • Hannover • Kassel •Kiel • Cologne • Leipzig • Lübeck Munich • Rostock • Stuttgart/Leonberg • Wiesbaden BDO AG Wirtschaftsprüfungsgesellschaft, a German company limited by shares, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

BDO is the brand name for the BDO network and for each of the BDO Member Firms. 09/2014