Posted by: Susanne Hermsen: German Desk

Dirkzwager and Loyens & Loeff have joined forces to write two extensive memos on directors’ liability in Germany and withholding taxes / social security for directors resident in the Netherlands and working for companies based in Germany.

Directors’ liability in Germany
The memo from Susanne Hermsen (Dirkzwager) discusses the internal and external directors’ liability of a director in Germany and the liability concerning bankruptcies. This was already mentioned before in this knowledge portal.
The criminal liability is also explained and the limitation of a director’s liability is discussed. The responsibilities, rights, liability and limitation of liability of the Supervisory Board are also addressed.

Withholding taxes and social security
The memo from Esther Patty (Loyens & Loeff) discusses a few aspects of withholding taxes and social security in relation to directors who live in the Netherlands and work in Germany.
The treatment of executive pay is discussed first of all. A distinction is made here between the current treaty with Germany and the new tax treaty which will most likely take effect in 2014. The salary split will also be addressed. National insurance schemes, administration and pension are also discussed.

The German Desk at Dirkzwager would be happy to advise you on matters concerning German corporate law.