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 11 / 14
Who is liable for VAT in an intra-Community triangular transaction?
When the simplification rule under § 25b UStG applies, the final customer owes the VAT on the intra-Community acquisition. If entitled to deduct input VAT, the final customer can simultaneously claim an equivalent input VAT deduction. This relieves the intermediary (first customer) from any obligation to register for VAT in the country of destination.
As of: February 2024
Who should bear income-related expenses if the end of the usufruct is not foreseeable?
In this case, the usufructuary should continue to bear the income-related expenses, as only they currently generate the rental and leasing income. This is the only way to ensure that the expenses are tax-deductible.
As of: October 2023
Are employers reimbursed for social security contributions during short-time work?
Yes, as part of the Corona relief packages, the employer's share of social security contributions for work hours lost due to short-time work is reimbursed. This provides additional relief to employers beyond the wage replacement benefits granted to employees.
As of: May 2021
Are final tax assessments amended in the case of retroactive contribution refunds?
No. Since the revision of § 10 Abs. 4b EStG effective 01.01.2012, the assessments of the original payment years are no longer retroactively corrected. Instead, refunds are offset in the year of inflow or, where they exceed contributions, added as a refund surplus to the total amount of income. This avoids administrative effort.
As of: August 2023
How are employers reimbursed for the energy price allowance they have paid out?
The employer deducts the energy price allowances paid out from the total amount of wage tax to be withheld. If the total allowance granted exceeds the wage tax to be remitted, the excess amount is refunded by the tax office.
As of: July 2022
How does a single person calculate the laundry costs for 2 kg of work clothing per wash?
For a single-person household, applicable rates are, for example, 0.76 € per kg for coloured laundry at 60°C, 0.55 € per kg for condenser drying, and 0.07 € per kg for ironing. For 52 wash cycles of 2 kg each, this results in: 52 × 2 kg × (0.76 + 0.55 + 0.07) € = 143.52 € per year. The amounts per person are lower in larger households.
As of: December 2021
How is the additional tax payment calculated for Kurzarbeitergeld (short-time work allowance) under the Progressionsvorbehalt (progression clause)?
First, the income tax on the regular income excluding Kurzarbeitergeld is determined. Next, a hypothetical income including Kurzarbeitergeld is calculated, and the resulting higher average tax rate is applied to the actual taxable income. The difference between this amount and the wage tax already withheld constitutes the additional payment — for example, 672 euros on an income of 24,000 euros plus 5,573 euros of Kurzarbeitergeld.
As of: May 2021
How does the BFH define a full-time educational measure?
According to the BFH definition, a full-time educational measure or full-time course of study only exists if the taxpayer must devote themselves to it entirely. If a course of study is specifically designed to be completed alongside gainful employment or with reduced effort, this requirement is not met.
As of: June 2022
How do the tax authorities define 'services rendered within the household' under § 35a EStG?
The BMF guidance letter dated 09.11.2016 expanded this definition: certain services performed outside the property may also qualify, provided they have a functional connection to the household. Examples include winter clearing services on adjacent public sidewalks or work on utility connections to supply and disposal networks. Pure disposal services such as waste removal and sewage disposal, however, do not qualify.
As of: January 2023
How do I register for the OSS procedure?
Registration is completed online via the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt) using your VAT identification number. Businesses already enrolled in the Mini-One-Stop-Shop procedure are transferred to the OSS procedure automatically. Subsequent log-in to the BZSt online portal is possible for businesses or their Steuerberater (German Certified Tax Advisor) via Elster signature.
As of: June 2021
How can you identify fraudulent emails relating to the Transparenzregister (German Transparency Register)?
Fraudulent emails appear, among others, under the name 'Organisation Transparenzregister e.V.' and refer to websites such as www.TransparenzregisterDeutschland.de. They threaten fines and demand a fee-based registration – both claims are incorrect.
As of: January 2020
How does the one-fifth rule under § 34 Abs. 1 EStG work mathematically for overtime compensation?
First, the tax on the annual income without the compensation is calculated. Then, the tax on the annual income plus one-fifth of the overtime compensation is determined. The difference between these two amounts is multiplied by five, yielding the tax on the overtime compensation. This effectively spreads the progression effect over five years and reduces the tax burden.
As of: March 2022
How does the one-fifth rule under Sec. 34 (1) EStG work?
Under the one-fifth rule, the income tax is calculated twice: once without the capital gain and once including one-fifth of the capital gain. The difference between the two tax amounts is multiplied by five, resulting in the tax on the entire capital gain. This mitigates the progression effect of the one-time gain.
As of: June 2023
How does the home office flat rate work and who is eligible?
The home office flat rate under § 4 Abs. 5 Nr. 6b sentence 4 EStG allows 5 € per home office day, capped at 120 days or 600 € per year. It is available to every taxpayer, even without a recognised home study. The condition is that no full or partial deduction under § 4 Abs. 5 Nr. 6b sentences 2 and 3 EStG has already been claimed.
As of: November 2021
Wie funktioniert die Homeoffice-Pauschale?
Für Arbeitstage im Homeoffice lässt sich eine Tagespauschale ansetzen. Die kompakte Infografik dazu finden Sie in unserem Merkblatt-Verzeichnis unter "Homeoffice-Pauschale". (Quelle: Deubner Verlag)
How did the Münster Tax Court rule on shorter depreciation periods for rental properties?
The Münster Tax Court ruled in favor of asset-managing GmbH & Co. KGs that claimed a shorter remaining useful life for buildings from the 1920s and 1950s than the statutory depreciation period of 40 or 50 years. The decision was based on independent market value appraisals prepared in accordance with the ImmoWertV (German Real Estate Valuation Ordinance), which confirmed the shorter useful life.
As of: March 2023
How did the BFH rule on deferred retirement?
The BFH clarified that the taxable portion of a pension is determined exclusively by the actual start of the pension. In the case at hand, deferring the pension start by three years (from 2009 to 2012) meant that 64% of the pension was taxable instead of 58%. Retroactive application to the year in which the pension could originally have been claimed is not permitted.
As of: April 2023
What is the contribution rate of the Künstlersozialabgabe and how is it calculated?
The contribution rate has remained constant at 4.2 % since 2018 and, thanks to government support, also applies unchanged in 2022. For the calculation, this percentage is applied to the total of reportable remuneration. The result is the amount the company must remit to the Künstlersozialkasse.
As of: January 2022
How much is the age relief amount (Altersentlastungsbetrag) for the 2022 assessment period?
For the 2022 assessment period, the rate is 14.4% of the assessment base, with a maximum amount of €684. The amount is rounded up to full euros. The rate and amount depend on the year following the completion of the taxpayer's 64th year of life (see table in § 24a sentence 5 EStG).
As of: February 2022
What is the disability lump-sum allowance from 2021 onwards?
Effective from the 2021 assessment period, the disability lump-sum allowances (Behinderten-Pauschbeträge) were doubled. They range from EUR 384 for a degree of disability (GdB) of 20 up to EUR 2,840 for a GdB of 100. The allowances are granted in increments of 10 GdB points.
As of: November 2021
How is the equity grant supplementing Bridging Aid III (Überbrückungshilfe III) staggered?
For the first and second month with a revenue decline of at least 50 percent, no supplement is granted. From the third month, the supplement amounts to 25 percent, from the fourth month 35 percent, and from the fifth month 40 percent. These rates are applied to the disbursed Bridging Aid III.
As of: April 2021
What is the relief amount for single parents in 2020 and 2021?
For the years 2020 and 2021, the relief amount is EUR 4,008 per calendar year for the first child. An additional EUR 240 per calendar year applies for each further eligible child. Previously, the relief amount was only EUR 1,908 per calendar year.
As of: December 2021
What is the relief amount for single parents (Entlastungsbetrag für Alleinerziehende) for the assessment periods 2020 to 2022?
For the first child, the relief amount is EUR 4,008 per year in the assessment periods 2020 and 2021. Through the JStG 2022, it was raised to EUR 4,260 from the 2022 assessment period onwards. For each additional child, an extra EUR 240 per year is granted.
As of: February 2023
What is the tax-free allowance for company events such as Christmas parties?
Since 01/01/2015, a tax-free allowance of 110 euros gross per participating employee applies. This allowance can be claimed for a maximum of two company events per year. Costs for accompanying persons are attributed to the respective employee.
As of: December 2019
What is the basic tax-free allowance for 2022 under the Tax Relief Act?
For 2022, the basic tax-free allowance (Grundfreibetrag) is being increased a second time, from the originally planned €9,984 to €10,347. By comparison, it stood at €9,744 in 2021. The measure is intended in particular to relieve lower-income groups.
As of: March 2022
What is the level of property tax relief for rental income losses?
If rental losses exceed 50% of the gross income, 25% of the property tax is waived. In the event of a complete loss of income from the property, 50% of the property tax can be waived.
As of: March 2021
What is the maximum special expenses deduction for initial training costs?
The maximum amount for the special expenses deduction (Sonderausgabenabzug) is currently EUR 6,000 per year. According to the Federal Constitutional Court, this limit does not violate the principle of tax exemption for the subsistence minimum. Unused amounts cannot be carried forward to later years.
As of: February 2020
How high is the tax deduction and by when must it be remitted?
The recipient of the service must withhold 15% of the consideration and remit it to the tax office. The basis of assessment is the fee including the applicable VAT. Remittance must be made by the 10th of the month following payment; otherwise, late-filing and late-payment surcharges may apply.
As of: May 2023
How high is the pension allowance (Versorgungsfreibetrag) for children in the case of an inheritance?
The pension allowance for children is staggered by age: up to 5 years 52,000 euros, up to 10 years 41,000 euros, up to 15 years 30,700 euros, up to 20 years 20,500 euros, and up to 27 years 10,300 euros. For a surviving spouse or registered civil partner, the pension allowance amounts to 256,000 euros.
As of: January 2022
How high is the late-filing surcharge for submitting a tax return too late?
The late-filing surcharge (Verspätungszuschlag) amounts to 0.25% of the assessed income tax, but at least €25 for each month or part thereof of delay. If the return reaches the tax office within the first 14 months after year-end, the office has discretion in setting the surcharge.
As of: July 2021
What is the reduced tax rate under § 34 Abs. 3 EStG?
The reduced tax rate amounts to 56% of the average tax rate applied to the total taxable income. However, the prevailing entry-level tax rate, currently 14%, serves as the lower limit. This ensures that the preferential rate does not fall below the general minimum level.
As of: June 2023
What is the maximum reimbursement amount under Neustarthilfe Plus?
The maximum reimbursement amount under Neustarthilfe Plus remains EUR 4,500 and corresponds to 50% of revenue compared to the reference period. Eligible applicants are, in particular, solo self-employed individuals and cooperatives.
As of: November 2021
What is the new interest rate under Section 233a AO?
Under the new regulation, the interest rate on tax arrears and refunds has been reduced retroactively to 1 January 2019 to 0.15% per month, or 1.8% per year. Previously, it was 0.5% per month, or 6% per year. The rate applies to all taxes listed in § 233a Abs. 1 AO, namely income, corporate, wealth, value-added, and trade tax.
As of: May 2022
How high is the tax-free Corona bonus for nursing staff, and who is eligible?
The tax-free Corona bonus under § 3 No. 11 EStG was raised to €4,500. Eligible recipients include hospital staff as well as employees of outpatient surgical facilities, certain preventive and rehabilitation facilities, dialysis centers, medical and dental practices, and rescue services. Payment must be made between 18 November 2021 and 31 December 2022 and must be granted in addition to the wages already owed; voluntary employer payments are also covered.
As of: June 2022
How much is the annual home office flat rate and when is it reduced?
Instead of deducting actual costs, an annual flat rate of EUR 1,260 can be claimed without receipts (§ 4 Abs. 5 Satz 1 Nr. 6b Satz 3 EStG). If the activity begins or ends mid-year, the flat rate must be reduced by one-twelfth for each full month in which the home office requirements were not met. Both the flat rate and the full cost deduction require that the home office is the center of the professional activity.
As of: September 2023
What is the de minimis threshold for the commercial infection of a partnership?
Commercial infection only occurs if the commercial turnover exceeds 3% of the partnership's total net turnover and at the same time exceeds EUR 24,500 per calendar year. For smaller photovoltaic systems, this threshold was rarely exceeded in practice.
As of: October 2023
What is the flat-rate business expense allowance for childminders?
The flat-rate business expense allowance is 300 euros per child cared for, per month, based on a weekly care time of 40 hours. If the agreed care time is shorter, the allowance is calculated proportionally using the formula: 300 € × agreed care time / 40 hours. It is always required that the care takes place in the childminder's own household.
As of: July 2021
What is the lump-sum business expense allowance for full-time writers and journalists as of 2023?
Starting with the 2023 assessment period, full-time self-employed writers and journalists may deduct a flat 30% of their business income as business expenses, capped at EUR 3,600 per year. Until 2022, the cap was EUR 2,455. The basis is the BMF circular dated 06.04.2023.
As of: December 2023
What is the feed-in tariff for new PV systems with full feed-in?
Under full feed-in, new systems receive 13.0 cents/kWh for the first 10 kWp and 10.9 cents/kWh for any capacity exceeding that. A 13-kWp system thus achieves an average of 12.5 cents/kWh. This requires commissioning on or after 30 July 2022 and is still subject to approval by the EU Commission.
As of: September 2022
How much is the commuter allowance per kilometre?
For the one-way distance between your home and your primary place of work, you may claim €0.30 per kilometre as income-related expenses. From 2021 onward, the rate increases from the 21st kilometre to €0.35 (2021–2023) and €0.38 (2024–2026). The allowance applies regardless of the means of transport used.
As of: January 2022
What is the level of fixed-cost funding under Überbrückungshilfe IV?
For revenue losses of more than 70%, up to 90% of eligible fixed costs are reimbursed. For losses between 50% and 70%, up to 60% are reimbursed, and for losses of more than 30%, up to 40%. This tiered structure is identical to Überbrückungshilfe III Plus.
As of: December 2021
How much is the home office flat rate for 2020 and 2021?
For the years 2020 and 2021, taxpayers can claim a flat rate of EUR 5 per calendar day as income-related expenses for each day worked exclusively from home. The annual maximum is EUR 600, equivalent to 120 home office days. This flat rate also applies when the strict requirements for a dedicated home office room are not met.
As of: January 2021
How much is the Neustarthilfe Plus in the extended 2022 period?
The Neustarthilfe Plus has been extended through the end of March 2022. The funding amount remains unchanged at EUR 1,500 per month, or a maximum of EUR 4,500 for the entire extended funding period.
As of: December 2021
How much is the Neustarthilfe (restart aid) and how is it calculated?
The Neustarthilfe amounts to 50% of the six-month reference turnover and is capped at a maximum advance of EUR 7,500. The reference turnover is generally derived from the 2019 annual turnover: (2019 annual turnover / 12) × 6. Applicants who started their business activity between 01/01/2019 and 01/05/2020 may choose between three alternative calculation methods.
As of: March 2021
What is the commuter allowance from 2021 onwards?
From 2021, the distance allowance remains unchanged at EUR 0.30 per kilometer for the first 20 kilometers. From the 21st kilometer onwards, it increases to EUR 0.35 for the years 2021 to 2023 and to EUR 0.38 for the years 2024 to 2026.
As of: March 2020
What is the commuter allowance from 2021 onwards?
From 2021, the distance allowance is 30 cents for the first 20 kilometres of the one-way commute. From the 21st kilometre onwards, it was increased from 30 cents to 35 cents. This increase was adopted as part of the Act Implementing the 2030 Climate Protection Programme.
As of: December 2020
What is the rate of the special depreciation under Section 7b EStG, and over what period does it apply?
The special depreciation amounts to up to 5% per year and may be claimed in the year of acquisition/production and in the three following years, totaling up to 20% over four years. It is granted in addition to the straight-line depreciation under Section 7 (4) EStG. After the benefit period ends, further depreciation continues on a straight-line basis from the remaining book value.
As of: March 2023
How much is the tax reduction for energy-efficient refurbishments?
Over a three-year period, a total of 20% of the expenses, capped at EUR 40,000 per property, can be deducted from income tax. In the first and second years, 7% each (max. EUR 14,000) is deductible, and in the third year 6% (max. EUR 12,000). Fees for energy consultants or energy efficiency experts are immediately deductible at 50% in the year of payment.
As of: April 2024
How high is the tax reduction for household-related services under § 35a Abs. 2 EStG?
Upon application, the income tax due is reduced by 20% of the expenses incurred, but by no more than €4,000 per year. The prerequisite is that the services qualify as household-related services not already covered by § 35a Abs. 3 EStG (tradesperson services), and that they are performed within the taxpayer's household.
As of: May 2023
What is the tax reduction under § 35a Abs. 2 and Abs. 3 EStG?
For household-related services under § 35a Abs. 2 EStG, the income tax is reduced by 20% of the expenses, capped at EUR 4,000. For tradesperson services under § 35a Abs. 3 EStG, the reduction is likewise 20% of the expenses, but limited to a maximum of EUR 1,200 per year.
As of: August 2023