Questions & Answers
Answers to common questions.
Curated from our articles on tax advisory, statutory audit and legal services — alphabetical, filtered by audience or topic.
For you as…
Topics
2304 questions · Page 1 / 47
When does the entitlement to Kindergeld (German child benefit) end if a one-year study abroad turns into a multi-year stay?
If the stay abroad was initially planned for only one year, the domestic residence is assessed under the stricter standards for multi-year stays only from the point at which the decision to extend was made. If it becomes clear during the ongoing academic year that the child will not spend more than half of the study-free periods at home, the domestic residence ceases as of that moment and not only at the end of the academic year.
As of: October 2023
When does the pro rata forfeiture of losses under § 8c (1) KStG cease to apply?
Following the Bundestag resolution of 8 November 2018, § 8c (1) KStG is being repealed in full without replacement. The rule therefore no longer applies not only for the period 2008 to 2015, which the Federal Constitutional Court found objectionable, but also for share acquisitions from 2016 onwards. As a result, transfers of shareholdings between 25% and 50% no longer trigger a pro rata forfeiture of losses.
As of: November 2018
When do the clarifications on the tax exemption of restructuring gains take effect?
The new rules apply from the day after the relevant law is promulgated. Retroactive entry into force is not provided for.
As of: December 2024
When do the new rules on the income tax allowance (Lohnsteuerfreibetrag) take effect?
The changes take effect on the day after the law is officially promulgated. They apply both to the new application deadline and to the rules on the relief amount for single parents in the year of separation.
As of: December 2024
When do the new rules on the deduction of childcare costs apply?
The increase to 80% of expenses and the new maximum amount of EUR 4,800 per child apply for the first time from the 2025 assessment period. For earlier assessment periods, the two-thirds rule and the maximum amount of EUR 4,000 continue to apply.
As of: December 2024
When do the new regulations on protection against cash register manipulation take effect?
The changes introduced by the Act to Protect Against Manipulation of Digital Basic Records are to be applied for the first time to financial years beginning after 31 December 2018. Businesses handling cash transactions should therefore adapt their cash management procedures in good time.
As of: May 2016
When do the new rules on photovoltaic tax exemption take effect?
The unified capacity thresholds and the clarification as an exemption limit (Freigrenze) apply for the first time to systems acquired, put into operation, or expanded after 31 December 2024. For older systems, the previous rules remain applicable.
As of: December 2024
When does the cash payment ban for household-related care and support services take effect?
The new rule applies from the 2025 assessment period. Anyone wishing to claim care or support services for tax purposes from this year onwards should ensure that payment is made by non-cash means and that an invoice is on file.
As of: December 2024
From when does the increased lump-sum allowance for inheritance costs of EUR 15,000 apply?
The increase applies to acquisitions for which the inheritance tax arises from the month following the promulgation of the law onward. The decisive factor is therefore the point in time when the tax arises, not the date of the inheritance event in general.
As of: December 2024
From when does the statutory EUR 150 allowance for bonus payments apply?
The statutory rule applies from the 2025 assessment period onwards. For payments made up to 31 December 2024, a corresponding administrative rule applied as a simplification provision.
As of: December 2024
From when does the 4-day presumption of receipt for tax assessments apply?
The new 4-day presumption of receipt applies to all administrative acts that are mailed, electronically transmitted, or made available for electronic retrieval after 31 December 2024. It replaces the previous 3-day period and has been adjusted to the extended delivery times for postal mail.
As of: December 2024
From when does the amendment of Section 7a EStG regarding the declining-balance depreciation for buildings apply?
The new rule applies retroactively from the 2023 assessment period. Taxpayers can therefore apply the amended provisions already in their 2023 tax return.
As of: December 2024
When does the restriction to ELSTER and ERiC apply?
The new rules take effect the day after promulgation. No transition period is provided, so firms must adapt their communication processes promptly.
As of: December 2024
From when does the extension of § 19a EStG to group company shares apply?
The rule applies retroactively as of the 2024 assessment period. It can therefore be applied to qualifying share transfers from the beginning of that assessment period onward.
As of: December 2024
From when does the new rule on withdrawals and contributions during the retroactive period apply?
The new rule applies for the first time to contributions where, in cases of universal succession, the conversion resolution was adopted after 31 December 2023. In all other cases, it applies if the contribution agreement was concluded after 31 December 2023.
As of: December 2024
From when does the new rule on closing transactions for option writer premiums apply?
The new rule enters into force on the day after the law is promulgated. From that date, premiums paid on closing transactions must be recorded as negative investment income at the time of payment.
As of: December 2024
From when does the new rule on book value transfers under § 6 Abs. 5 Satz 3 Nr. 4 EStG apply?
The rule applies to all open cases. For transfers made before 12 January 2024, however, all participating co-entrepreneurs may jointly apply to opt out on grounds of legitimate expectations, if the book value approach would be disadvantageous in the individual case.
As of: December 2024
When does the new regulation on charitable housing rental take effect?
The inclusion of charitable housing purposes in the catalogue of tax-privileged charitable purposes applies from 1 January 2025. From this date, qualifying reduced-rate rentals can be recognised as charitable.
As of: December 2024
From when does the pension insurance exemption take effect if reported within the deadline at the start of employment?
If reported within the 6-week deadline, the exemption applies retroactively from the start of employment. Example: For employment starting on 1 March with the application submitted the same day, the notification must be received by 12 April at the latest for the exemption to take effect as of 1 March.
As of: September 2022
From when does the registration requirement for foreign donation recipients apply?
The rule applies for the first time to donations made after 31 December 2024. For earlier donations, registration in the donation recipient register is not required.
As of: December 2024
From when does the abolition of the loss offset restriction for derivative transactions apply?
The new rule applies to all open cases. However, for the capital gains tax withholding by credit institutions, it will not be objected to if the IT-related implementation only takes place from January 1, 2026.
As of: December 2024
From when does the flat-rate default fee under § 288 Abs. 5 BGB apply to existing employment relationships?
Initially, the rule applied only to employment relationships commenced after 28 July 2014. Since 30 June 2016, however, the flat-rate default fee applies to all employment relationships, including older contracts.
As of: July 2016
When does the opt-out rule for electronic notification of tax assessments take effect?
The new rule takes effect on 1 January 2026. From that date, notification of administrative acts by making them available for electronic retrieval no longer requires the recipient's consent. Instead, an opt-out rule applies: those affected must actively object if they do not wish to receive notifications in this form.
As of: December 2024
When does the one-year useful life for computer hardware and software apply?
The rule applies to fiscal years ending after 31 December 2020. It also covers assets acquired before that date, provided they are still being depreciated over the previous three-year useful life. For private assets, the rule applies from the 2021 assessment period onwards.
As of: March 2021
From when does the new EUR 800 threshold for low-value assets apply?
The increase of the threshold for low-value assets (GwG) from EUR 410 to EUR 800 takes effect on 01/01/2018. For acquisitions made before this date, the previous threshold of EUR 410 continues to apply. The decisive factor is the date of acquisition or production of the asset.
As of: March 2017
When does the new rule on electronic child benefit applications take effect?
The new rule applies to child benefit applications received after the date the law is promulgated. Applications submitted before that date remain subject to the previous rules.
As of: December 2024
When does the new attribution rule for real estate transfer tax apply?
The new rule applies for the first time to acquisition transactions under § 1 Abs. 2a to 3a GrEStG that are realised after the date of promulgation of the Jahressteuergesetz 2024 (Annual Tax Act 2024). Acquisition transactions under § 1 Abs. 1 and 2 GrEStG realised before this cut-off date must also be taken into account.
As of: December 2024
When does the new Dutch VAT ID number for sole proprietors take effect?
As of 1 January 2020, Dutch sole proprietors must use a new VAT identification number for intra-Community transactions. The previous VAT IDs of these sole proprietors will become invalid on that date. VAT IDs of other Dutch business forms are not affected by the change.
As of: January 2020
When does the documentation obligation for cross-border tax arrangements under the EU Mandatory Disclosure Directive apply?
The EU Mandatory Disclosure Directive (DAC6) has triggered certain documentation duties as early as 25 June 2018, even though the actual reporting obligation only needs to be fulfilled by 31 August 2020. This creates a so-called look-back period during which taxpayers and intermediaries must review and document relevant arrangements, even though the national implementing legislation has not yet been fully enacted.
As of: July 2019
When does the eRechnung (e-invoice) become mandatory in B2B and which transitional rules apply?
An eRechnung must be issued in a structured electronic format compliant with EN 16931. For transactions between 1 January 2025 and 31 December 2026, paper invoices or other electronic invoices (with the recipient's consent) remain permitted. Businesses with a prior-year turnover of up to EUR 800,000 benefit from an extended transition period until 31 December 2027. Small-value invoices and transport tickets are permanently exempt.
As of: December 2024
From when is reduced-rate letting with full deduction of income-related expenses possible?
Since 1 January 2021, landlords can fully deduct their income-related expenses for reduced-rate residential letting if the rent received amounts to at least 50% of the local market rent. Previously, this threshold was 66%. The change is intended to prevent landlords from having to raise rents purely for tax reasons.
As of: January 2021
From when can the pro-rated relief amount for single parents be taken into account in the wage tax deduction?
In the case of permanent separation of spouses or civil partners, the pro-rated relief amount for single parents can be established as an allowance in the wage tax deduction procedure starting in the month of separation, provided the remaining requirements are met. This codifies the case law of the BFH.
As of: December 2024
When does breakfast qualify as a meal for tax purposes?
For wage tax purposes, breakfast requires that the baked goods be served with at least a spread or topping. Only then does it qualify as a meal, the free provision of which must be recorded as wages at the official benefit-in-kind value.
As of: October 2019
When must electronic cash registers be equipped with a certified technical security device (TSE)?
Since 1 January 2020, electronic recording systems must be protected by a certified technical security device (Technische Sicherheitseinrichtung, TSE). In addition, the registers must be able to print a receipt for every transaction, and the systems in use must be reported to the Finanzamt.
As of: November 2019
From when does the lessee of an entire commercial business participate in economic activity?
Due to the fiction of a new business formation under Section 2 (5) GewStG, the lessee participates in economic activity from the start of the lease, not only from the actual opening of operations. As a result, expenses incurred between the start of the lease and the opening can be relevant for trade tax purposes.
As of: February 2022
When is the solidarity surcharge set to be abolished for the majority of taxpayers?
Under the German federal government's draft legislation to scale back the solidarity surcharge, the abolition is scheduled to take effect from 2021. The bill entered parliamentary deliberation with its first reading on 24 October 2019. For the vast majority of those currently paying the surcharge, it will be eliminated in full.
As of: October 2019
From when and at what rate does the increased commuter allowance apply?
The commuter allowance will rise to €0.38 per kilometer as early as 2022 (instead of 2024). However, the increase only applies from the 21st kilometer onward and is intended to relieve commuters in light of rising energy prices.
As of: March 2022
From when and where can you register for the MOSS procedure?
Registration for the MOSS (Mini One-Stop Shop) procedure has been possible since 1 October 2014, allowing proper participation from the start of the new rules on 1 January 2015. In Germany, the competent authority is the Bundeszentralamt für Steuern (BZSt, Federal Central Tax Office), which provides an online portal for registration.
As of: November 2014
When will the Business Identification Number be introduced?
The law introducing the W-IdNr. already entered into force on 15 July 2021 (BGBl. I 2021, 2506). Actual assignment of the numbers and the associated base register are expected to be operational from autumn 2024.
As of: September 2024
From what amount can assets be allocated to the collective pool?
Assets with acquisition or production costs starting at €250 can be allocated to the collective pool (Sammelposten). The current upper limit is €1,000, but it is set to be raised to €5,000 per asset.
As of: December 2023
From what degree of disability is the lump-sum allowance granted from 2021 onwards?
The system is being aligned with social security law: a disability will now be recognized starting at a degree of disability of 20 (previously 25). The scale is graduated in 10-point increments up to a degree of disability of 100. In addition, from the 2021 assessment period onwards, the additional eligibility requirements for taxpayers with a degree of disability below 50 no longer apply.
As of: August 2020
From what amount of evasion does a surcharge under § 398a AO apply in a voluntary disclosure?
The previous threshold of EUR 50,000 is to be lowered to EUR 25,000. Up to this amount, prosecution is waived without payment of a surcharge. If the evaded amount exceeds EUR 25,000, a tiered surcharge must be paid in addition to the back taxes.
As of: November 2014
From which kilometre does the increased commuter allowance for the mobility premium apply?
The increased commuter allowance applies from the 21st kilometre of distance and amounts to €0.35 per kilometre in 2021, and an expected €0.38 per kilometre in 2022. For the first 20 kilometres, the regular rate of €0.30/km still applies. Only the increased allowance from the 21st kilometre onwards forms the basis for calculating the mobility premium.
As of: March 2022
From what business value does the relief needs assessment apply under inheritance tax law?
Starting at EUR 26 million of preferential business assets per acquirer, an individual relief needs assessment (Verschonungsbedarfsprüfung) or a sliding-scale relief model applies. The relief deduction is reduced by one percent for each EUR 750,000 above this threshold. Under the optional relief, the deduction is eliminated entirely at EUR 90 million; under the standard relief, at EUR 89.75 million.
As of: June 2016
From which assessment year does the extended filing deadline for income tax returns apply?
The extended filing deadline applies for the first time to the income tax return for 2018, which is due in 2019. From 2019 onwards, taxpayers therefore have two additional months to prepare and submit their return.
As of: January 2019
From which assessment period do the extended filing deadlines apply?
The extended filing deadlines apply for the first time to income tax returns from the 2018 assessment period onwards. For earlier years, the previous deadlines still apply, with submission by 31 May or, in cases handled by a Steuerberater (German Certified Tax Advisor), by 31 December of the following year.
As of: January 2017
From which assessment period does the deduction ban for initial training costs apply?
The rule applies to all assessment periods from 2004 onwards. The BFH considers this to violate neither the constitutional prohibition of retroactivity nor the principle of equality under Art. 3 GG.
As of: February 2014
From which assessment period does the extended filing deadline of 31 July apply?
The new filing deadline of 31 July applies for the first time to the tax return for the 2017 calendar year. For earlier assessment periods, the previous deadline of 31 May continued to apply.
As of: May 2016
From what value does a special recording obligation apply to low-value assets (GWG)?
The threshold for the special recording obligation was raised from EUR 150 to EUR 250 net. Accordingly, businesses only need to record assets with acquisition costs above EUR 250 up to EUR 800, including the acquisition date, in a separate register, unless the information is already available from the accounting records. This recording obligation does not apply to the pooled-item (Sammelposten) rule.
As of: August 2017
From when does the bank transfer requirement apply to maintenance payments?
The rule applies from the 2025 assessment period onward. For earlier periods, cash payments may still be recognized under the previous conditions.
As of: December 2024