Questions & Answers
Answers to common questions.
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656 questions · Page 1 / 14
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
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
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
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
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
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
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 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
To what amount is the employee lump-sum allowance (Arbeitnehmer-Pauschbetrag) raised by the 2022 Tax Relief Act (Steuerentlastungsgesetz 2022)?
The employee lump-sum allowance is raised from €1,000 to €1,200 per calendar year. The increase is to apply retroactively as of 01/01/2022 and results in a reduction of the income tax burden for employees.
As of: March 2022
What is the legal basis for the reporting obligation to the Transparency Register?
The reporting obligation arises from sections 18 et seq. of the German Anti-Money Laundering Act (Geldwäschegesetz, GwG). It concerns information on beneficial owners and must be fulfilled, free of charge, vis-à-vis the official Transparency Register.
As of: January 2020
Is there entitlement to child benefit during a short-term illness-related interruption of training?
Yes. In the event of an illness-related interruption of vocational training, entitlement to child benefit under § 32 Abs. 4 S. 1 Nr. 2 a EStG remains in place as long as the illness is not expected to last longer than six months. In this case, it is sufficient that the training position continues to exist and the child intends to resume training, even if no training activities are currently being carried out.
As of: May 2022
For EU cases, is the entitlement limited to differential child benefit only?
No, the entitlement is not limited to differential child benefit if Germany has primary jurisdiction. If one parent is gainfully employed in Germany and no separate child benefit entitlement exists in the home country (e.g. Bulgaria), the full German child benefit is paid. The order of jurisdiction is governed by EC Regulation 883/2004.
As of: February 2021
Until when does the home-office flat rate apply, and what is its amount?
The home-office flat rate has been extended until 31 December 2022. Employees without a home office room may claim a flat rate of EUR 5 for each full day worked from home, up to a maximum of EUR 600 per calendar year. The flat rate is not available if expenses for a home office room are claimed in the same assessment period.
As of: June 2022
Until when does the increased commuter allowance from the 21st kilometre apply?
The increase of the distance allowance from the 21st kilometre onwards is limited until 31 December 2026. After that, the previous uniform rate of EUR 0.30 per kilometre of distance could apply again, unless a further statutory extension is enacted.
As of: March 2020
By when must the application to waive profit intention be submitted?
For existing installations commissioned before 01.01.2022, the application can be filed until the end of 2022. For new installations from 01.01.2022 onwards, the application can be submitted in the year following commissioning. For installations commissioned before 01.01.2004, the application is only possible after the 20-year EEG funding period has expired.
As of: January 2022
By when can the Neustarthilfe (restart aid) be applied for and who is eligible to file the application?
The funding period covers 01/01/2021 to 06/30/2021. Applications can be submitted until 08/31/2021 at the latest, and exclusively via an examining third party such as a Steuerberater (German Certified Tax Advisor). Each applicant may file only one application for Neustarthilfe, and a choice must be made between Neustarthilfe and Überbrückungshilfe III (bridging aid III).
As of: March 2021
Until when can old Dutch VAT IDs be confirmed under Sec. 18e UStG?
Confirmation requests under Sec. 18e UStG for Dutch VAT IDs valid until 31 December 2019 must be submitted to the Bundeszentralamt für Steuern by the end of 2019. From 1 January 2020, confirmation of the old numbers is no longer possible.
As of: January 2020
By when must the application for a property tax remission for 2020 be filed?
The application for a partial remission of property tax (Grundsteuer) for 2020 must be submitted to the relevant municipality or tax office by 31 March 2021. This deadline is a strict cut-off period (Ausschlussfrist).
As of: March 2021
By when must the exemption application be filed to apply retroactively to 01.10.2022?
The application must be received by the employer no later than 02.01.2023 for the exemption to take effect retroactively to 01.10.2022. However, retroactive exemption from health and long-term care insurance is only possible if no benefits were claimed up to that date.
As of: September 2022
By when must the income tax return be filed without a Steuerberater (German Certified Tax Advisor)?
Under § 149 Abs. 2 S. 1 AO, the regular filing deadline is 31 July of the following year. For the 2022 tax return, the relevant date is therefore 31 July 2023. If the deadline falls on a Saturday, Sunday, or public holiday, it is extended to the next business day.
As of: July 2021
By when must the final statement for the Corona aid be submitted?
The final statement can be submitted from mid-May 2022 until 31 December 2022. Timely submission is mandatory, otherwise the approved funding must be repaid in full.
As of: May 2022
By when and where can a change of tax class be requested?
An application to change your tax class can be filed multiple times per calendar year with your local residence tax office (Wohnsitzfinanzamt). The deadline is November 30 of the respective calendar year. The application can also be submitted electronically via the "Mein Elster" portal.
As of: May 2022
Up to what amount is the simplified donation receipt permitted?
Following the Annual Tax Act 2020 (Jahressteuergesetz 2020), the simplified donation receipt is permitted up to an amount of EUR 300 (previously EUR 200). In such cases, a copy of the bank statement is sufficient as proof for the tax office; a separate donation receipt is not required.
As of: January 2021
Up to what amount are initial training costs deductible as special expenses?
Under § 10 Abs. 1 Nr. 7 EStG, costs for initial vocational training can only be claimed as special expenses up to a maximum of EUR 6,000 per calendar year. A deduction is also only possible if the taxpayer earns income in the same year.
As of: August 2023
Does the exemption from pension insurance contributions remain in effect if the mini-job is interrupted?
Yes, once granted, the exemption from pension insurance contributions applies for the entire duration of the mini-job and only ends when the employment is terminated. Interruptions due to parental leave or wage replacement benefits such as short-time work allowance (Kurzarbeitergeld) do not affect the exemption, provided the employment relationship continues.
As of: August 2021
Can the employer buy the mobile phone from the employee for a symbolic price?
Yes, the BFH has ruled that purchasing the mobile phone from the employee at a symbolic price (e.g. 1 to 6 euros) does not preclude the tax exemption under § 3 Nr. 45 EStG. The decisive factor is that a valid purchase agreement exists and the device thereby passes into the economic ownership of the employer. However, the tax authorities have so far taken a more restrictive view (LSt-Handbuch H 3.45, Example 2).
As of: February 2023
May another adult live in the single parent's household?
Generally no, as the tax office will then assume a shared household, causing the entitlement to the relief amount to lapse. Exceptions apply to adults for whom Kindergeld or the Kinderfreibetrag is still granted. The entitlement is also preserved if it can be proven that no shared household exists (e.g., through separate living areas).
As of: December 2021
Can old, non-upgradable cash registers still be used?
Yes. For cash registers acquired after 25 November 2010 and before 1 January 2020 that meet the previous requirements but cannot be technically upgraded, a transitional period applies until 31 December 2022. The relevant evidence must be available and attached to the system documentation.
As of: November 2019
Can refund interest that has already been assessed be retroactively reduced to the taxpayer's detriment?
No. Under § 176 Abs. 1 Nr. 1 AO (protection of legitimate expectations), a tax assessment may not be amended or revoked to the taxpayer's detriment. Therefore, if refund interest has already been assessed in the taxpayer's favor under the previous law, it may not be retroactively reduced by the new regulation.
As of: May 2022
Does the tax exemption cease to apply if the scholarship is tied to a subsequent employment obligation?
Yes. The Tax Court of Berlin-Brandenburg (judgment of 30 March 2022, 16 K 2083/20) ruled that the tax exemption under § 3 Nr. 44 EStG does not apply if the recipient is obliged to take up employment for a specified period after completing their studies. In the case at hand, a teacher trainee was required to work as a teacher in Berlin for at least three years. An appeal is currently pending before the BFH.
As of: July 2022
Do pensioners and retired civil servants receive the energy price allowance?
Individuals receiving only a pension or retirement benefits (e.g., civil servant pensions) are not entitled to the energy price allowance, as these payments are not among the qualifying types of income. They are only eligible if they additionally generate income under § 13, § 15, § 18 or § 19 Abs. 1 S. 1 Nr. 1 EStG.
As of: July 2022
Does a one-time engagement exceeding EUR 450 automatically trigger the artists' social security contribution?
No. The Federal Social Court has ruled that merely exceeding the EUR 450 threshold under Section 24 (3) KSVG does not automatically trigger a contribution obligation to the Künstlersozialkasse (Artists' Social Security Fund). The decisive factor is whether assignments are placed with a certain regularity and continuity. A one-time engagement does not meet this requirement.
As of: August 2022
Which categories of income are subject to the cash-basis (Zufluss-/Abfluss) principle?
The principle applies without restriction to the surplus income categories: income from employment (§19), capital investments (§20), rental and leasing (§21), and other income (§22 EStG). For profit-based income categories, it applies only if profits are determined via the cash-basis income statement under §4 Abs. 3 EStG. It does not apply to the accrual-based balance sheet method under §4 Abs. 1 EStG.
As of: February 2022
For which services do bonus payments not qualify as a contribution refund?
A contribution refund does not apply if the bonus payment relates to services outside basic health insurance coverage, such as alternative medicine or professional dental cleaning. The same applies to bonuses promoting health-conscious behavior, such as memberships in a sports club or gym, provided the insured person bore the expenses themselves. In these cases, no reduction of special expenses (Sonderausgaben) is required.
As of: March 2023
Which freelance activities qualify for the lump-sum business expense deduction?
The tax authorities allow a lump-sum business expense deduction (H 18.2 EStH) for four groups of activities: full-time writing and journalistic work, secondary scientific, artistic and writing activities, part-time teaching and examining activities, as well as self-employed midwives and childminders. The lump sum can be claimed without supporting receipts.
As of: December 2023
For which period can the tax reduction under § 35b EStG be claimed?
The reduction is granted for income that was subject to inheritance tax as an acquisition upon death during the assessment period or in the four preceding assessment periods. This results in a maximum benefit period of five years from the date of the decedent's death.
As of: May 2024
For what period can Überbrückungshilfen III Plus and Neustarthilfen Plus additionally be applied for?
The Überbrückungshilfen III Plus and Neustarthilfen Plus programs have been extended to cover the fourth quarter of 2021. State subsidies can therefore now also be applied for the period from October to December 2021. The overall funding period thus runs from July to December 2021.
As of: November 2021
For which period can Bridging Aid III Plus and Restart Aid Plus be applied for in addition?
Bridging Aid III Plus (Überbrückungshilfen III Plus) and Restart Aid Plus (Neustarthilfen Plus) have been extended to cover the period from October to December 2021. The total funding period therefore spans the months from July to December 2021. Applications can be submitted as an initial application or as an amendment application.
As of: October 2021
Are development costs part of the real estate transfer tax base when buying from a municipality obliged to develop the land?
No. If a municipality obliged to provide development sells an undeveloped plot and the buyer additionally assumes the obligation to pay a development contribution, generally only the undeveloped plot is the object of the purchase. The development costs are therefore not part of the real estate transfer tax base. This applies regardless of whether the development agreement is integrated into the purchase contract or concluded separately (BFH II R 32/20).
As of: December 2022
Do the new feed-in tariffs also apply to PV systems commissioned before 30 July 2022?
No. Systems commissioned before 30 July 2022 remain subject to the previous, significantly lower tariffs (e.g., 6.23 cents/kWh for systems up to 10 kWp in July 2022). The increased rates apply exclusively to new systems commissioned on or after this cut-off date.
As of: September 2022
Is there already a BFH ruling on the deductibility of waste and wastewater fees?
No, a supreme court decision by the BFH is not yet available. The FG Münster did grant leave to appeal, but the appeal was rejected as inadmissible by order dated 01.09.2022 because the plaintiff missed the filing deadline. The legal question therefore remains settled for the time being by tax court rulings and the position of the tax authorities.
As of: January 2023
Is there a de minimis or exemption threshold for the short-term rental of individual rooms?
No, the law does not provide for any spatial or time-based exemption threshold for the tax-neutral short-term rental of individual residential rooms to third parties. Even a minor rental on a per-day basis results in the proportionate capital gain attributable to these rooms becoming taxable.
As of: July 2023
Is there a maximum amount for the commuting allowance?
The commuting allowance (Entfernungspauschale) is capped at €4,500 per calendar year (§ 9 Abs. 1 Nr. 4 S. 2 EStG). A higher amount can only be claimed if the taxpayer uses their own car or one provided for their use. For trips by bicycle, on foot, or by public transport, the €4,500 limit applies.
As of: January 2022
Does the BFH ruling on leasing prior to sale apply only to farmers?
No. Although the BFH ruling of 13 March 1986 (IV R 176/84) concerned an agricultural business, the principles apply to all profit-based income categories. The case law therefore also extends to commercial enterprises and professional practices.
As of: November 2022
Does the €3,000 tax-free allowance apply per employment relationship or per employee?
The €3,000 allowance can generally be claimed separately for each employment relationship, including multiple concurrent jobs with different employers. The employer is not required to verify whether the employee has already received the IAP from a previous employment relationship. However, for consecutive employment relationships with the same employer, the maximum amount applies only once.
As of: January 2023
Does the elimination of the apportionment requirement also apply outside of agriculture?
Yes, the principles can be transferred to other letting and leasing arrangements, for example to buildings with freight elevators or similar operating equipment. VAT-exempt letting is therefore possible even when operating equipment is leased along with the property, provided it qualifies as an ancillary service to the provision of the building.
As of: September 2023
Does the EUR 1,000 cap on double household management also apply abroad?
No. The monthly cap of EUR 1,000 under § 9 Abs. 1 S. 3 Nr. 5 S. 4 EStG applies exclusively to accommodations within Germany. For a double household maintained abroad, the actually necessary accommodation costs are deductible as income-related expenses.
As of: November 2023
Does the reporting obligation for electronic cash registers under § 146a Abs. 4 AO already apply?
No, the reporting obligation under § 146a Abs. 4 AO does not apply until an electronic transmission option is made available. The date on which this option will become available will be announced separately by the tax authorities.
As of: November 2019
Does the BSG case law also apply to typical exploiters under Section 24 (1) KSVG?
No. For the typical exploiter companies expressly listed in Section 24 (1) KSVG, it is irrelevant whether commissions are only awarded occasionally. For these companies, the obligation to pay contributions exists regardless of the frequency of commissions.
As of: August 2022