Questions & Answers
Answers to common questions.
Curated from our articles on tax advisory, statutory audit and legal services — alphabetical, filtered by audience or topic.
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656 questions · Page 10 / 14
Which statutory provision governs the treatment of educational institutions as a primary place of work?
The relevant provision is § 9 Abs. 4 Satz 8 EStG in the version of the reformed travel expense law applicable since the 2014 assessment period. Under this rule, an educational institution attended outside an employment relationship for the purpose of full-time studies or a full-time educational measure is deemed to be the primary place of work.
As of: October 2020
Welche haushaltsnahen Dienstleistungen sind steuerlich begünstigt?
Für haushaltsnahe Dienstleistungen und Handwerkerleistungen gibt es eine Steuerermäßigung. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Haushaltsnahe Dienstleistungen". (Quelle: Deubner Verlag)
Which specific renovation measures are recognized for tax purposes?
Recognized measures include wheelchair ramps, barrier-free home entrances, stair lifts, accessible bathrooms and kitchens, walk-in bathtubs with doors, threshold-free terrace doors, doors widened for wheelchair access, lower window handles and light switches, as well as handrails and grab bars in rooms. The conversion of a ground-floor room into a bedroom also qualifies.
As of: November 2019
Which new EEG feed-in tariffs apply to PV systems with self-consumption?
For PV systems with self-consumption commissioned on or after 30 July 2022, new tariff rates apply: 8.2 cents/kWh for systems up to 10 kWp and 7.1 cents/kWh for the capacity portion above this threshold. For a 13 kWp system, this results in a blended rate of approximately 7.9 cents/kWh. However, application of these rates remains subject to EU approval.
As of: September 2022
Which new factors are considered in the asset value method (Sachwertverfahren)?
The asset value method now incorporates a regional factor, set locally by the appraisal committee (Gutachterausschuss), as well as an age reduction factor. In addition, the value figures under Annex 25 BewG have been raised to current market levels. Both adjustments typically lead to higher property valuations.
As of: November 2022
What is the practical implication of the BFH ruling II R 32/20 for purchasers of real estate?
Purchasers who acquire an undeveloped plot from a municipality obligated to provide infrastructure development and who commit to paying future development charges do not have to pay real estate transfer tax on the development portion. A single combined purchase price stated in the contract does not change this. The taxable base is accordingly reduced to the value of the undeveloped plot.
As of: December 2022
What tax treatment applies when retrofitting a battery storage system?
Depreciation and an input VAT deduction for the battery storage system are only possible if more than 10% of the generated solar power is used for business purposes. Up to 90% of the electricity may be consumed privately without forfeiting the input VAT deduction.
As of: June 2021
What are the tax consequences if heirs declare the cessation of a leased agricultural and forestry business?
If the heirs declare the cessation of business retroactively to the date of death pursuant to § 16 Abs. 3b S. 3 EStG, a taxable cessation gain arises under § 16 Abs. 3 EStG in conjunction with § 14 S. 2 EStG. The resulting income tax, solidarity surcharge, and church tax are borne by the heirs but do not reduce the enrichment subject to inheritance tax.
As of: October 2023
What are the tax consequences of the elimination of commercial taint under Section 3 No. 72 EStG?
Due to the tax exemption under Section 3 No. 72 EStG, expanded by the 2022 Annual Tax Act, the partnership no longer generates commercial income from the photovoltaic system. Assets previously affected by commercial taint (e.g., rented buildings) are removed from business assets, requiring the disclosure and taxation of hidden reserves.
As of: October 2023
What are the tax consequences of classifying the educational institution as the primary place of work?
Trainees and students are treated like employees with a primary place of work. Travel expenses to the educational institution can therefore only be claimed as income-related expenses using the commuter allowance (Entfernungspauschale), not at actual cost. A deduction for accommodation and additional meal expenses under business travel rules is excluded.
As of: October 2020
What are the tax implications of feeding solar power into the public grid?
When selling the electricity, the operator generates business income under § 15 EStG. The system can be depreciated over 20 years, and input VAT on acquisition, maintenance, and repairs is recoverable; however, sales must be subjected to VAT and preliminary VAT returns must be filed. Under the small business rule pursuant to § 19 UStG, the VAT obligation does not apply.
As of: June 2021
What are the tax implications of deferring retirement?
Anyone who postpones the start of their pension is subject to a higher taxable portion, as this is gradually increasing to 100% by 2040. As a result, the tax-free portion of the pension is smaller than it would be with an earlier retirement date. This tax disadvantage must be weighed against the higher pension benefits achieved through deferral.
As of: April 2023
What extended filing deadlines apply to the income tax return from assessment period 2020 onwards?
For represented cases, filing deadlines were initially extended by 6 months (assessment period 2020 until 31/08/2022, assessment period 2021 until 31/08/2023), then gradually reduced up to assessment period 2024 (30/04/2026, +2 months). For non-represented cases, a 3-month extension applies (assessment period 2020 until 31/10/2021, assessment period 2021 until 31/10/2022), which is likewise phased out step by step. From assessment period 2025 (represented cases) or assessment period 2024 (non-represented cases), the original deadlines apply again.
As of: June 2022
Which contractual provisions were missing in the case before the Finanzgericht Münster?
The rental agreements contained no requirements ensuring that the vehicle would be used effectively for advertising purposes. They also lacked rules on whether additional advertising for other companies could be displayed or whether exclusivity was owed to the employer. As a result, the advertising effect was overshadowed by the employee relationship.
As of: February 2020
Which other work-related expenses are deductible during the receipt of insolvency benefits?
The case law on the deduction of work-related expenses (Werbungskosten) applies not only to travel costs but also to other professionally motivated expenses incurred during the receipt of insolvency benefits. These include, for example, the acquisition of work equipment or depreciation on business-use assets. The prerequisite is that there is no direct economic connection to the tax-free insolvency benefits.
As of: September 2022
What additional requirements apply from 2021 onwards for the disability lump-sum allowance with a GdB below 50?
From 2021 onwards, the additional requirements under § 33b Abs. 2 EStG no longer apply. Until 2020, individuals with a GdB below 50 had to either demonstrate a statutory pension entitlement (e.g. accident pension) or have a permanent restriction of physical mobility or an occupational illness. Since 2021, all individuals with a GdB of at least 20 receive the lump-sum allowance without any further requirements.
As of: November 2021
What changes to the German Valuation Act does the 2022 Annual Tax Act bring for real estate?
The 2022 Annual Tax Act (Jahressteuergesetz 2022) aligns the German Valuation Act (Bewertungsgesetz) with the Real Estate Valuation Ordinance (ImmoWertV) of June 2021. The amendments primarily affect the income-based and asset-based valuation methods (Ertrags- und Sachwertverfahren) used for real estate appraisal. In practice, this regularly results in higher valuations for tax purposes.
As of: November 2022
What changes apply to Überbrückungshilfe III Plus in Q4 2021?
In terms of content, there are almost no changes compared to Q3 2021. However, the restart bonus for reopening businesses is discontinued, as the federal government considers it to have served its purpose.
As of: October 2021
What changes are planned for midi-jobs and the transitional zone?
The upper limit of the transitional zone (sliding scale) is to be raised from €1,300 to €1,600 per month. In addition, the transitional zone between marginal and social-insurance-liable employment will be adjusted to reduce the employer's burden at the start of the sliding scale.
As of: March 2022
Which parent is entitled to the relief amount (Entlastungsbetrag) when parents live separately?
The relief amount is granted to the parent with whom the child is registered or permanently residing. If the child resides equally with both parents, they may choose which parent receives it; if no choice is made, it goes to the parent entitled to child benefit (Kindergeld). A split between the parents is not permitted—the full amount is always granted to only one parent.
As of: February 2023
What period does Überbrückungshilfe IV cover?
Überbrückungshilfe IV (Bridging Aid IV) succeeds Überbrückungshilfe III Plus and covers the funding period from 1 January 2022 to 31 March 2022. It is aimed at companies and solo self-employed individuals who continue to be affected by the coronavirus pandemic.
As of: December 2021
What is the maximum deductible amount for maintenance payments as an extraordinary burden?
The maximum amount equals the basic tax-free allowance (Grundfreibetrag) for the respective calendar year (e.g., €9,408 in 2020 and €9,744 in 2021). It is increased by the recipient's health and long-term care insurance contributions assumed by the payer. If maintenance was not paid for the entire year, the tax office reduces the maximum amount pro rata for the months without payment.
As of: April 2021
Which reference date is decisive for allocating the acquisition costs of real property?
According to the FG Münster, the decisive date is the day on which possession, benefits, risk, and encumbrances are transferred. For real property, this generally corresponds to the date of actual delivery, not the date of notarization or any earlier oral agreement.
As of: January 2023
Which VAT rate applies to cafeteria sales in care facilities?
Cafeteria sales in a care facility are generally subject to the standard VAT rate of 19%. A VAT exemption does not apply, and the reduced rate only applies if the respective requirements (e.g. take-away sales) are met.
As of: November 2023
What is the difference when acquiring from a private development company?
When purchasing from a private development company, the developed plot itself is regularly the subject of the acquisition. In this case, the development costs form part of the assessment basis for real estate transfer tax. This contrasts with a purchase from a municipality responsible for development.
As of: December 2022
Which value is to be used as acquisition costs for the private sale transaction in the case of a tax-neutral withdrawal?
If the property was withdrawn from business assets on a tax-neutral basis at book value, the FG Rheinland-Pfalz and the BFH hold that this book value (withdrawal value) must be used as acquisition costs within the meaning of § 23 Abs. 3 EStG. The going-concern value (Teilwert) or fair market value at the time of withdrawal cannot be applied. As a result, the hidden reserves are only taxed upon the subsequent sale from private assets.
As of: July 2022
Which date is decisive for the 10-year period in the case of a compulsory auction?
Decisive for calculating the 10-year period under § 23 Abs. 1 Nr. 1 EStG is the submission of the highest bid. As of this date, a contractual purchase agreement within the meaning of § 433 BGB is deemed to exist. Starting from this reference date, it must be assessed whether the disposal falls within or outside the speculation period.
As of: May 2022
What is the purpose behind the three-month waiting period for child benefit (Kindergeld)?
The waiting period is intended to protect the German social system from inappropriate use and to prevent child benefit from creating an incentive to move to Germany. However, this purpose does not apply if a domestic child benefit entitlement already existed prior to relocation, for example because one parent is gainfully employed in Germany.
As of: February 2021
Which year is decisive for the taxable portion of the pension?
Pursuant to § 22 No. 1 sentence 3 a) aa) EStG, the year of the actual commencement of the pension is decisive. The taxable portion applicable at that time, as set out in the statutory table, is applied to the pension. An earlier possible pension start date (e.g., upon reaching age 65) is irrelevant if the pension is in fact only drawn later.
As of: April 2023
What risk arises if driving schools provisionally treat their services as VAT-exempt?
If the BFH confirms the VAT liability, the VAT must be paid retroactively. In addition, late-payment interest of 6% per year is charged. A purely VAT-exempt treatment without safeguards is therefore not recommended.
As of: March 2016
Who applies for the civil servants' death benefit and who pays it out?
The application for the death benefit is filed by the heirs or surviving dependants of the deceased civil servant with the competent State Office (Landesamt). Payment is made by the respective employing public authority (Dienstherr) — in the decided case, by the State of North Rhine-Westphalia via the Landesamt.
As of: September 2021
Who is entitled to claim special depreciation on seasonal and perishable goods?
Special depreciation on seasonal and perishable goods such as clothing, fruit, or vegetables is now also available to manufacturers and wholesalers. Previously, this rule was limited to retailers.
As of: April 2021
Who receives the equity grant and in what amount?
Businesses with an average Corona-related revenue decline of at least 50% in December 2021 and January 2022 receive a supplement of up to 30% on top of the fixed-cost reimbursement. Showpeople, market vendors and private operators of cancelled Advent and Christmas markets with a revenue decline of at least 50% in December 2021 receive a supplement of 50%.
As of: December 2021
Who receives a Business Identification Number?
The W-IdNr. is assigned to all economically active entities within the meaning of § 139a Abs. 3 AO. This includes natural persons, legal entities, partnerships and other associations of persons engaged in economic activity. Multiple W-IdNrn. may be issued for several activities, businesses or permanent establishments.
As of: September 2024
Who qualifies as an artist or publicist subject to mandatory insurance under the Künstlersozialkasse?
Insurance is mandatory for anyone who works on a self-employed basis as an artist or publicist on more than a temporary basis, carries out this activity primarily in Germany, and employs no more than one employee. To support classification, the Künstlersozialkasse also provides a catalogue of listed professions as guidance.
As of: January 2022
Who is entitled to the old-age relief amount (Altersentlastungsbetrag)?
All taxpayers who have completed their 64th year of life before the assessment period are eligible. The percentage rate and maximum amount are determined by the year following the completion of the 64th year of life. Certain types of income under § 24a sentence 2 Nr. 1-5 EStG (e.g. pension payments, life annuities) are excluded from this tax benefit.
As of: February 2022
Who is entitled to the equity grant supplementing Überbrückungshilfe III (Bridging Aid III)?
Companies that recorded a revenue decline of more than 50 percent in at least three months between November 2020 and June 2021, compared with the corresponding reference months in 2019, are eligible. The equity grant is paid in addition to Überbrückungshilfe III and must be accounted for separately.
As of: April 2021
Who is entitled to the relief amount for single parents under § 24b EStG?
Single taxpayers are entitled if at least one child belongs to their household for whom they receive a child allowance (Kinderfreibetrag) or child benefit (Kindergeld). A person is considered single if they cannot use spousal income splitting or are widowed and do not share a household with another adult. Exceptions apply if the other adult is the taxpayer's own child for whom child benefit or a child allowance is granted.
As of: February 2023
Who is entitled to the 300 EUR energy price allowance?
Eligible are all individuals who were subject to unlimited income tax liability in Germany for at least part of 2022 and earned income under § 13 EStG (agriculture and forestry), § 15 EStG (business operations), § 18 EStG (self-employment), or § 19 Abs. 1 S. 1 Nr. 1 EStG (active employment). Mini-jobbers, working students, cross-border commuters, and employees with tax-free wages (e.g., instructors) are also entitled. No specific date or minimum duration of activity is required.
As of: July 2022
Who received child benefits in the FG Münster case despite not being employed?
A Bulgarian mother who moved to Germany in July 2020 with her children to join her husband, who was already employed there, received child benefits for the first three months after relocation even though she was not employed herself. The decisive factor was that her husband's residence and employment had already established a fictitious family residence in Germany prior to her move.
As of: February 2021
Who is required to file an income tax return for 2020 due to short-time work allowance?
Employees who received more than 410 euros in wage replacement benefits in the 2020 calendar year — such as short-time work allowance (Kurzarbeitergeld), unemployment benefits, sick pay, or parental allowance — are required to file an income tax return under § 46 Abs. 2 Nr. 1 EStG. This obligation applies to many employees for the first time due to the Corona-related short-time work phases.
As of: May 2021
Who is eligible to apply for the Neustarthilfe (restart aid) under Überbrückungshilfe III (Bridging Aid III)?
Eligible applicants are solo self-employed individuals (including those operating through a partnership such as a GbR, OHG, or KG) as well as corporations with one or more shareholders. The requirements are that at least 51% of income or revenue must derive from commercial activity (§15 EStG) or self-employed activity (§18 EStG), no more than one part-time employee is employed, and the activity or business was established before 01.05.2020. In addition, no application for Überbrückungshilfe III may have been submitted.
As of: March 2021
Who is eligible to apply for Überbrückungshilfe III Plus in Q4 2021?
Eligible applicants include companies, business associations, self-employed individuals, and comparable applicants with annual revenue below 750 million euros in 2020 and a revenue decline of at least 30% compared to the reference months in 2019. Companies affected by the flood disaster of July 2021 are also eligible to apply.
As of: October 2021
Who is eligible to apply for Überbrückungshilfen III Plus (Bridging Aid III Plus) in Q4 2021?
Eligible applicants include businesses, business associations, and self-employed individuals with annual revenue below 750 million euros in 2020 and a revenue decline of at least 30% compared to the reference months in 2019. Companies affected by the flood disaster in July 2021 are also eligible to apply.
As of: November 2021
Who is obliged to withhold the construction withholding tax?
The withholding obligation applies to legal entities under public law as well as to entrepreneurs within the meaning of § 2 UStG, provided they receive a construction service in Germany for their business. This also applies to small businesses under § 19 UStG and entrepreneurs with exclusively tax-exempt turnover under § 4 UStG. The decisive factor is that the service is received within the scope of the business.
As of: May 2023
Who is required to file an income tax return?
Self-employed individuals, business owners, and farmers and foresters are required to file if their income exceeds the basic tax-free allowance (2021: €9,744). For employees, filing is mandatory in cases such as wages from multiple employers, secondary income exceeding €410, wage replacement benefits exceeding €410, or for married couples where one spouse is registered under tax class IV, V, or VI.
As of: July 2021
Who is required to prepare an inventory?
All merchants within the meaning of the German Commercial Code are required to do so pursuant to § 240 Abs. 1 and 2 HGB. At year-end, they must record all assets such as real estate, goods, receivables, and liabilities by quantity and value. Freelancers and entrepreneurs who determine their profit via the cash-basis income statement (Einnahmenüberschussrechnung) are exempt from this obligation.
As of: November 2023
Who can apply for a property tax remission for 2020?
Landlords who experienced significant rental losses through no fault of their own in the 2020 calendar year may apply for a partial remission of property tax (Grundsteuer). The prerequisite is a verifiable loss of income from the rented property. The application must be submitted to the tax office of the competent municipality.
As of: March 2021
Who must submit a final statement for the Corona aid programs?
All applicants who received Überbrückungshilfen (bridging aid), Novemberhilfen, or Dezemberhilfen are required to submit a final statement (Schlussabrechnung). Since approval was based on projected revenues and costs, the actual figures must be verified through an authorized reviewing third party such as a Steuerberater (German Certified Tax Advisor), Wirtschaftsprüfer (German Statutory Auditor), or Rechtsanwalt (German Attorney-at-Law).
As of: May 2022
Who benefits most from the increase in the commuter allowance?
Commuters with long journeys to work of more than 20 kilometres benefit most from the higher allowance. The aim of the rule is to provide relief in particular for commuters in rural regions who often have no public transport alternatives.
As of: March 2020