Pension insurance Germany: Crediting of claims from abroad
22.09.2025
If people have worked in several countries, it is quite possible to receive pension benefits from each of those countries. The eligibility requirements are based on the respective national laws. The Ecovis experts explain exactly what applies.
Working anywhere in the world has become a given these days. This impacts future pensions, as a few years are often enough to qualify for a pension from a country of employment.
Pension claims from the German pension insurance
Under German law, there are different types of pensions. Each of these has its own applicable retirement age and minimum insurance period. The retirement age for the standard old-age pension is gradually being raised to 67 years, depending on the year of birth. The minimum insurance period for a basic claim is only 5 years. Those who have worked for the 35 or 45-year minimum insurance period may have the option of early retirement, though this often involves reductions.
Crediting periods abroad
Shorter employment periods abroad may not meet the minimum insurance period of the respective country. However, through European regulations and numerous social security agreements with countries outside Europe, insurance periods can be combined to meet the minimum requirements for pension eligibility. Sometimes, periods of child-rearing can also be taken into account. Pensions are not added together into a total sum; instead, each country pays its own pension.
Anyone who has worked abroad should inform themselves early on about the rules in the individual countries and seek pension advice. Andreas Islinger, Tax Advisor and Pension Advisor, ECOVIS Germany, Munich, Germany
Example:
A Spanish employee has worked in Germany for three years and has spent the rest of their working life employed in Spain. This does not meet the minimum required insurance period for a pension from Germany. However, the periods worked in Spain are credited towards fulfilling the minimum insurance period in Germany. As a result, the employee is entitled to a German pension based on the three years worked there. Depending on the duration of insurance in Spain, there may also be a further pension entitlement in Spain.
For further information please contact:
Andreas Islinger, Tax Advisor and Pension Advisor, ECOVIS Germany, Munich, Germany
Email: andreas.islinger@ecovis.com
Work Permit Vietnam: New Regulations for Foreign Workers
22.09.2025
Vietnam has issued new regulations that simplify the process for foreign workers to obtain permits, shorten approval timelines, and broaden exemptions for specialists in key sectors. The Ecovis Experts at ECOVIS AFA VIETNAM outline what this means for businesses and foreign workers.
In recent times, the system of legal regulations on foreign workers working in Vietnam has been issued in a relatively complete and coordinated manner. This has contributed significantly to attracting foreign workers – especially those with high technical expertise, management and operations experience, as well as investors – to work in Vietnam, helping to address the shortage of highly qualified workers.
However, given Vietnam’s growing appeal to investors, experts, and highly skilled workers in new industries, and professions such as the semiconductor industry, artificial intelligence, and digital transformation, it is necessary to implement more flexible policies and reduce the time taken to grant work permits. This will help to meet the production and business needs of enterprises.
Therefore, the Government has issued Decree No. 219/2025/ND-CP (Decree 219), which includes several new provisions regarding the issuance of work permits for foreign workers in Vietnam.
Employers must report labour demand within work permit applications
Under the new regulations, the application dossier for a work permit must include a written statement from the employer explaining the need to employ foreign workers, and requesting the issuance of a work permit. For this process, employers must use Form 03, which can be found in the Appendix issued with this decree.
The time limit for granting a work permit is 10 days
Decree 219 clearly states the following: Within 10 working days from the date of receiving a complete application for a work permit, the competent authority shall consider and approve the request and issue a work permit to the foreign worker. Should the need for foreign labour be disapproved of or a work permit for a foreign worker not be granted, a written response must be issued within three working days of receiving the complete application, outlining the reasons for the decision.
Regarding the authority to issue work permits, the regulations stipulate that the provincial-level People’s Committee has the authority to issue, reissue, extend, and revoke them.
Supplementing cases in which foreign workers are exempt from obtaining a work permit
ND 219 supplements cases of foreign workers confirmed by ministries, ministerial-level agencies or provincial People’s Committees to enter Vietnam to work in the following fields: finance, science, technology, innovation, national digital transformation, and priority fields for socio-economic development, who are not required to be granted work permits.
The above regulation takes effect from August 7, 2025.
The above contents have been researched and summarized by ECOVIS AFA VIETNAM from a range of widely published legal documents and articles. Should you wish to discuss issues in more detail, please contact us via information below:
Cambodia Business Advisory: Supporting Business Growth in Cambodia and Beyond
19.09.2025
With over 40 years of international experience across the UK, the Middle East, Africa and Southeast Asia, Murray Macmillan combines technical expertise with practical leadership. A chartered accountant, he began his career in Scotland before moving to Price Waterhouse in England, advancing to manager level on audit engagements for some of the largest companies in the UK and Middle East. He later held CFO roles internationally and completed a Master’s in Information Systems. Today, Murray is a director at ECOVIS VSDK & Partners in Cambodia, helping businesses tackle challenges ranging from business planning and valuation to financial due diligence, forensic accounting and dispute resolution.
Murray is particularly skilled in company reorganisation and management, especially situations requiring a detailed understanding of processes and people. His current work includes providing hands-on support to a carbon-credit start-up, navigating the challenges of a rapidly evolving sector.
Murray works with clients across various industries, though he particularly enjoys working with manufacturing and fast-moving goods companies. Looking across the business landscape, Murray observes a decline in management quality and professional training standards. He cautions against an over-reliance on systems at the expense of fundamental business understanding. In Cambodia in particular, he sees financial pressures leading some companies to pursue short-term gains at the cost of long-term professional standards, warning that such shortcuts could undermine the country’s ability to build the investor confidence needed for sustainable growth.
At the heart of Murray’s work is a passion for people. Whether engaging directly with management teams, working on-site to understand operations, or mentoring young professionals at the start of their careers, Murray brings both experience and encouragement.
“I like working with people, and I like to get out and about and really see how things work.” Murray reflects. “I especially like working with younger people at the beginning of their careers and I consider it a growing part of my role to pass on what I can.”
This commitment to people, combined with his international perspective and expertise, makes Murray a trusted advisor for clients looking to strengthen their operations and grow with confidence.
Murray Macmillan’s extensive experience as a Chartered Accountant coupled with his CFO roles in the Middle East, Africa and Asia makes him a valuable asset for businesses seeking financial guidance. If you ever need financial advice or want to discuss business matters, Murray is a friendly type who’d be happy to chat.
Murray specializes in:
Business Planning, Modelling, Review, Valuation, and Financial Due Diligence: These are critical aspects of strategic decision-making. Whether it’s assessing investment opportunities, evaluating business models or conducting due diligence before mergers or acquisitions Murray’s expertise comes into play.
Forensic Accounting, Fraud Investigation and Financial Dispute Resolution: Sometimes businesses find themselves in financial disputes—whether with partners, suppliers, or other stakeholders. Murray’s experience in detailed financial analysis and claim support can be invaluable in resolving these issues.
Transfer pricing Peru: Higher audit risk for companies without an APA agreement
19.09.2025
Peruvian tax authorities have significantly stepped up their enforcement of transfer pricing (TP), particularly in the scrutiny of intercompany services and related‑party transactions. Where advance pricing agreements (APAs) with SUNAT remain under negotiation or pending approval, companies operating in Peru must exercise heightened vigilance, recommend the Ecovis consultants.
Audit trends and regulatory focus
Recent global tax commentary highlights that the authorities in Peru, Argentina, Colombia, Ecuador, Uruguay, and Venezuela are increasingly targeting payments for intercompany services, demanding robust economic justification and compliance with arm’s‑length principles.
In Peru, the tightening of transfer pricing rules via legislative changes (e.g., Legislative Decrees 1662 and 1663, effective since 1 January 2025) now permits the application of bilateral APAs and introduces new valuation methodologies such as discounted cash flow (DCF), multiples, and equity participation models.
Implications for companies without APAs
Intensified audits. SUNAT is actively challenging intercompany service arrangements, especially where documentation, benefit to the Peruvian party, or margin assumptions appear weak or unsupported.
Higher risk of adjustments or penalties. In cases of non-compliance, SUNAT has imposed a 5% additional tax rate on deemed dividends, which was recently upheld by a tax court decision relating to insufficient transfer pricing documentation.
Crucially, where APAs are not in place or still under negotiation, companies lack the protective certainty that agreed methods will withstand audit scrutiny, increasing their exposure to adjustments and legal disputes.
We will discuss with you how you can manage TP compliance in your company and reduce the audit risk. Octavio Salazar Mesías, Partner – Tax & Legal Department, ECOVIS Peru, Lima, Peru
Proactive measures recommended
To mitigate emerging risks, Peruvian-based multinational enterprises should consider:
Accelerating APA finalisation, whether unilateral, bilateral or multilateral, to lock in transfer pricing methodologies with SUNAT in advance of full tax audit reviews. The new framework allows retroactive coverage for bilateral APAs, which enhances certainty for previous fiscal years.
Strengthening contemporaneous documentation, including local and master files, justification of intercompany services evidence, benefit assessments, allocation criteria, and margin support consistent with OECD standards and Peruvian regulations.
Conducting internal diagnostics, identifying anomalies or gaps ahead of a potential audit – particularly on pricing methodologies, service allocation, and related-party transaction justification.
As SUNAT intensifies fiscal scrutiny and pending APAs remain unresolved, now is the time for companies to reinforce their transfer pricing defences and consult with experts to examine how to manage their TP compliance and reduce audit risk. This includes:
Diagnostic reviews of existing TP practices and documentation
APA structuring, negotiation, follow‑up and retroactive application strategy
Response plans to audit notifications, including documentation defence and risk assessment
Optimisation of intra‑group agreements and pricing policies aligned with compliance and economic substance
For further information please contact:
Octavio Salazar Mesías, Partner – Tax & Legal Department, ECOVIS Peru, Lima, Peru
Email: octavio.salazar@ecovis.com.pe
More financing flexibility for entrepreneurs in the Netherlands
18.09.2025
On 1 July 2025 the law on lifting prohibitions on pledges (Wet opheffing verpandingsverboden) came into effect in the Netherlands, eliminating contractual clauses that prevent the transferability and pledgeability of receivables. The reform is designed to improve access to credit for entrepreneurs and especially for SMEs, giving them broader financing flexibility and options.
Background and legislative changes
Under Dutch law, monetary claims are freely transferable, unless limited by law or the nature of the right. However, companies could exclude the assignment or pledging of claims through contractual provisions. This practice, common in sectors like construction and retail, aimed to protect debtors from dealing with new creditors and payment addresses.
The business community, however, had commented on unintended economic side effects: receivables and credit portfolios were no longer suitable as collateral, reducing credit capacity. Meanwhile, other countries such as Germany and the UK had already abolished similar non-pledge and non-transfer clauses, creating competitive disadvantages for Dutch businesses, as the Ecovis consultants know.
The new law reverses this by allowing the pledge or assignment of monetary claims arising from business transactions, regardless of whether they involve b-to-b or b-to-c relationships. Clauses prohibiting or restricting such pledges are now void, including indirect measures such as penalty provisions or conditional requirements.
We advise you on how to navigate the new legal framework and leverage your receivables effectively. David Bos, Attorney at law, Partner, Kienhuis Legal – member of ECOVIS International – Utrecht, The Netherlands
Limited exceptions
The reform retains some exceptions, where transfer or pledge restrictions remain valid:
Money claims from checking and savings accounts
Syndicated loans with multiple lenders
Clearing house claims
G-account claims (specific bank accounts used in respect of certain tax claims)
Practical effects and written notifications
Currently the law only applies to new agreements. As of 1 October 2025, the law will also apply to existing agreements, making previously unpledgeable claims pledgeable. This change enables businesses to leverage receivables more effectively as collateral, improving financing capacity.
Furthermore, to ensure clarity for debtors, the law requires written notification (including by e-mail) of any transfer or pledge. Until such notice is provided, debtors may continue paying the original creditor in full discharge of their obligations.
Practical guidance for entrepreneurs
Review model contracts: Companies should remove non-transferability and non-pledge clauses from templates and upcoming contracts.
Use receivables as collateral: Companies should consider pledging monetary receivables more frequently as a financing strategy.
For further information please contact:
David Bos, Attorney at law, Partner, Kienhuis Legal – member of ECOVIS International – Utrecht, The Netherlands
Email: david.bos@kienhuislegal.nl
Carried interest Luxembourg: Modernising the regime to boost financial competitiveness
17.09.2025
On 24 July 2025, the Luxembourg government submitted draft bill no. 8590, proposing significant improvements to the tax regime for profit sharing for the managers of a capital investment at the expense of the investors, orcarried interest. The new regulation is scheduled to take effect in 2026. The Ecovis experts explain how companies can benefit from the new rules.
The legislative initiative aims to enhance Luxembourg’s appeal as a financial hub by attracting front-office functions and providing legal certainty to alternative investment fund (AIF) managers in Luxembourg and investors.
Key enhancements of the draft bill
Broader eligibility: The new rules apply not only to employees of an AIF manager or management company only but also to independent directors, advisors, and any service providers.
Permanent reduced tax rate: A flat one-quarter rate replaces the temporary expatriate regime and now applies broadly to contractual carried interest.
Recognition of ‘deal-by-deal’ carry: Carried interest structures not requiring full investor reimbursement are now eligible for favourable tax treatment.
Clarification for transparent entities: Income from participations will always be classified as speculative gain, regardless of the underlying income.
Two-tiered tax treatment
Contractual carried interest: Taxed as extraordinary income at a reduced flat rate (~11%+)
Investment-linked carried interest: Classified as speculative gain, fully tax-exempt if the participation is ≤10% and held for over 6 months.
Companies should review existing carried interest structures now. We can support you in this process. Arnaud Yamalian, Managing Director, ECOVIS IFG Audit S.A. – Luxembourg
Safeguards and anti-abuse measures
To prevent misuse, the draft law requires that carried interest must have genuine economic substance. Fixed or predictable remuneration disguised as carry will not qualify. Luxembourg’s general anti-abuse rules apply to deter artificially low hurdle rates or recurring bonus-like structures.
Date of implementation
The law is expected to apply from 1 January 2026, covering income realised on or after this date. The legislative process is ongoing, but the government’s commitment to legal clarity and competitiveness is evident.
Advice for clients
AIF managers and their advisors should begin preparing for the new regime by reviewing existing carried interest structures. Ensuring that documentation aligns with the eligibility criteria under the revised regime is key.
Company law Lithuania: Entering a new era of corporate structures with redeemable shares
16.09.2025
On 30 June 2025, the Lithuanian Parliament adopted amendments to company law which aim to enable more efficient company management, more flexible forms of raising capital and more modern investment structures. The changes include the introduction of redeemable shares and changes to the board election process. The Ecovis experts explain the new rules.
New opportunities for companies: redeemable shares legalised
Redeemable shares are issued for a limited time, after which the company must buy them back. This model has long been used in other jurisdictions, especially in common law countries, and has frequently been utilised in Lithuania through shareholder agreements on share buybacks.
The amendments legalise financial assistance for acquiring company shares. A company will now be allowed to grant a loan or secure obligations for such purposes (with some restrictions).
Please feel free to contact us for strategic advice and expert support in implementing these changes in corporate law. Loreta Andziulytė, partner and attorney at law, ECOVIS ProventusLaw, Vilnius, Lithuania
Other changes
Growing significance of management bodies
Certain decisions, previously within the exclusive competence of the shareholders’ general meeting, may now be delegated to the board or CEO (if no board exists).
Changes to the board election procedure
The right of a minority shareholder holding at least 10% of votes to demand the re-election of the entire board when individual board members resign is abolished. Additionally, a company’s collegial (supervisory board or board) or its members may start their duties not only immediately after the meeting/session that elected them, but also at a later date specified in the resolution.
These measures are designed to facilitate the growth of startups, support investment transactions, and strengthen companies’ ability to compete in the European capital market.
For further information please contact:
Loreta Andziulytė, partner and attorney at law, ECOVIS ProventusLaw, Vilnius, Lithuania
Email: loreta.andziulyte@ecovis.lt
Capital gains tax Italy: The tax treatment when Italian property is involved
15.09.2025
Capital gains arising from the disposal of real estate located in Italy, or from the sale of shares in real estate-holding companies, may be subject to taxation in Italy. The Ecovis experts explain the correct tax treatment when an Italian property is involved in such transactions.
If a non-resident taxpayer directly or indirectly owns real estate in Italy and intends to sell it, the associated tax aspects must be carefully examined. This also applies to the development of a real estate investment. The reason: in some cases, taxpayers must pay tax on the capital gains realised in Italy.
Indirect disposal of real estate
In the case of an indirect disposal, pursuant to article 23, paragraph 1-bis of the Italian Income Tax Code (TUIR), income derived from the sale for consideration of shares in non-resident companies or entities is considered to be produced within the territory of Italy if more than half of the value of such entities is derived from real estate located in Italy. This type of income is subject to taxation at a rate of 26%.
In a recent ruling no. 175/2025, the Italian tax authorities confirmed this interpretation, even when the entity disposing of the shares is a foreign-law Trust. This rule is in line with paragraph 4 of article 13 of the OECD Model Tax Convention, as well as article 9 of action 15 of the BEPS Project (MLI).
We provide tax advice if you want to sell real estate or shares in companies with real estate holdings in Italy. Alberto Gandini, Chartered Accountant and Associate, ECOVIS STLex, Milan, Italy
Direct disposal of real estate
If the property is directly sold, it must be checked whether the holding period exceeds five years or not. According to article 69 of the TUIR, capital gains will not be subject to taxation if the property has been held for more than five years prior to the sale. Otherwise, the gains will be taxable in Italy.
As a result, when selling real estate located in Italy, or disposing of shares in companies owning real estate in Italy, it is essential to carefully verify the conditions and review any applicable double taxation treaties between the countries involved.
For further information please contact:
Alberto Gandini, Chartered Accountant and Associate, ECOVIS STLex, Milano, Italia
Email: a.gandini@stlex.it
Raffaele Esposito, Junior Associate, ECOVIS STLex, Milano, Italia
Email: r.esposito@stlex.it
GmbH liquidation Germany: How investors safeguard capital
12.09.2025
What happens to an investor’s capital when a GmbH or UG is liquidated in Germany? While these legal forms limit personal liability, they do not automatically protect investors. In the event of insolvency or voluntary dissolution, the risk of a total loss is real. The Ecovis consultants explain how this can be avoided.
GmbH and UG – popular but risky
GmbH and UG are common for start-ups, project companies, and investments. Yet in liquidation, company assets can be depleted quickly, and unsecured investors are often subordinated in insolvency proceedings. Without protection, most or all of the investment may be lost. The good news: There are legal and contractual instruments that can be used to protect capital
What is liquidation protection?
Liquidation protection involves measures designed to reduce the risk of total capital loss if a company is dissolved or becomes insolvent. This includes protective clauses in the articles of association, the use of collateral or guarantees, and the careful structuring of shareholder loans, all combined with a clear understanding of priority rules in insolvency.
Typical investor risks
Shareholder claims, such as those from loans, are legally subordinated to other debts (§ 39 Abs. 1 Nr. 5 InsO). Even in voluntary liquidation, capital is only repaid after all liabilities are settled (§ 60 Abs. 1 Nr. 2 GmbHG). Without participation rights, investors also have little influence over crisis decisions.
Our legal and financial experts will help you develop customised protection strategies for your investments. Richard Hoffmann, Lawyer, ECOVIS Rechtsanwaltskanzlei Richard Hoffmann, Ladenburg, Germany
How investors can protect themselves
The articles of association are the central tool for protection. Well-drafted provisions can regulate repayment rights in the event of liquidation, grant information and control rights, and ensure participation in key decisions. These clauses should be precise and legally enforceable to withstand disputes.
Security can also be strengthened through collateral and external guarantees, such as bank guarantees, the pledging of shares or assets, or guarantee statements from parent companies. This is particularly relevant for UGs, which often have minimal share capital.
Finally, shareholder loans should be structured in a way that avoids automatic subordination in insolvency. This can be achieved by limiting qualified subordination, using secured and interest-bearing loans with clear termination rights, or in some cases renouncing shareholder status if it improves repayment chances.
Be prepared
Anyone investing in a GmbH or UG should prepare for worst-case scenarios. With strong contractual provisions, reliable security instruments, and a sound legal structure, the risk of losing capital can be significantly reduced.
For further information please contact:
Richard Hoffmann, Lawyer, ECOVIS Rechtsanwaltskanzlei Richard Hoffmann, Ladenburg, Germany
Email: richard.hoffmann@ecovis.com
Transfer pricing Spain: The tax authorities are tightening the reins
11.09.2025
With a strong focus from the Spanish tax authorities (AEAT) and clear regulatory evolution, multinational groups operating in Spain must now ensure that their transfer pricing documentation and methodologies are not only compliant, but also technically sound and defensible.
Transfer pricing in the focus of auditors
The 2025 Spanish Tax Control Plan prioritises transfer pricing (TP) as a central area of inspection. It places particular emphasis on intra-group services, financial transactions, business restructurings, intangible asset transfers, and entities with recurring losses. The authorities are increasingly verifying whether “low-risk” entities – typically distributors or contract manufacturers – actually assume the limited risks they claim, with proper functional and financial segmentation.
Tax authorities with new methodology
At the same time, Spain continues to refine its practical approach. One important trend is the use of interquartile ranges for setting and assessing arm’s length prices. Following OECD guidelines and national case law, the AEAT generally allows taxpayers to justify their pricing within a reliable interquartile range. However, if results fall outside the range, adjustments are commonly made to the median – unless, based on facts and circumstances, the taxpayer can prove why another point within the range is more accurate.
We advise clients on the design of transfer pricing strategies, audits, APA negotiations, and litigation. Mariajosé Díez Escalona, Transfer Pricing Manager, ECOVIS Audit Madrid, Madrid, Spain
Documents required by the tax administration
All of this underlines the growing technical sophistication expected by the Spanish tax administration. It is no longer enough to submit formal documentation: authorities are requiring substantive analysis, robust comparisons and economic logic. Spain is also actively using mutual agreement procedures (MAP) and advance pricing agreements (APA) to avoid double taxation and reinforce cooperative compliance.
Multinational groups operating in Spain should reassess their TP documentation, validate their economic models, and review their internal comparisons – especially where low-risk entities are involved, recommend the Ecovis experts. Pre-emptive dialogue with authorities via APAs may also be a strategic tool to reduce audit risk.
