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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What is the relocation expense allowance for miscellaneous costs from April 2022?
Effective 01.04.2022, the flat-rate allowance for miscellaneous relocation expenses is EUR 886 for the person relocating and an additional EUR 590 for each further household member (spouse, civil partner, children). This flat rate can be claimed without itemised proof. Alternatively, actual costs may be substantiated by invoices.
As of: August 2021
How high is the simple trade tax deduction for business real estate?
The simple deduction amounts to 1.2% of the assessed value (Einheitswert, until 31/12/2024) or the property tax value (Grundsteuerwert, from 01/01/2025) of the real estate belonging to the business assets that is not exempt from property tax. The relevant date is the beginning of the calendar year. Only the portion of a property that actually belongs to the business assets qualifies for the deduction.
As of: March 2023
What is the new mini-job threshold as of October 2022?
The marginal earnings threshold is being raised from the previous EUR 450 to EUR 520 per month. This is intended to prevent mini-job employees from having to permanently reduce their working hours due to rising minimum wages in order to stay below the threshold.
As of: March 2022
What are the inheritance tax rates by tax class and asset value?
In tax class I, rates range from 7% (up to EUR 75,000) to 30% (over EUR 26 million). In tax class II, they range from 15% to 43%, and in tax class III from 30% to 50%. The applicable rate is applied to the assets exceeding the personal allowance.
As of: January 2022
What are the 2024 domestic per-diem meal allowances in Germany?
For absences of more than 8 hours from home and the primary place of work, €14 per calendar day may be claimed. For a full 24-hour absence, the rate is €28 per day. For arrival and departure days on multi-day trips, a flat €14 applies regardless of the length of absence.
As of: July 2022
What are the trainer's allowance and volunteer allowance from 2021 onwards?
From 2021, the trainer's allowance (Übungsleiterpauschale) increases from EUR 2,400 to EUR 3,000 per year. At the same time, the volunteer allowance (Ehrenamtspauschale) is raised from EUR 720 to EUR 840. This provides stronger tax incentives for voluntary work.
As of: January 2021
What are the trainer's allowance and honorary office allowance amounts since 2021?
Since 01/01/2021, the tax-free trainer's allowance (Übungsleiterfreibetrag) has been EUR 3,000 per year (previously EUR 2,400), and the honorary office allowance (Ehrenamtspauschale) is EUR 840 per year (previously EUR 720). Income up to these amounts remains exempt from tax and social security contributions.
As of: August 2021
How is the final accounting of the Corona aid programs divided into packages?
Package 1 covers Überbrückungshilfen I through III as well as the November and December aid. Überbrückungshilfe III Plus and Überbrückungshilfe IV are accounted for in separate packages. Submissions must be made in chronological order of the funding programs.
As of: May 2022
How is the Wirtschafts-Identifikationsnummer structured?
The W-IdNr. consists of a base number to which a five-digit distinguishing feature is added. This allows different economic activities and business locations of a company to be uniquely identified. Group structures can also be reflected more accurately in this way.
As of: September 2024
How is the new Dutch VAT identification number for sole proprietors structured?
The new VAT ID starts with the country code 'NL', followed by 12 characters. These may consist of any sequence of digits, uppercase letters, and the special characters '+' and '*'. Positions 11 and 12 are always digits.
As of: January 2020
How is a chain transaction with more than three parties treated?
If more than three businesses are involved in the supply chain, the simplification rule for intra-Community triangular transactions cannot be applied to the entire chain. The provisions of Sec. 25b UStG then only apply to the last three businesses in the supply chain, provided that the remaining requirements are met at that point.
As of: February 2024
Wie kann ich Kinderbetreuungskosten absetzen?
Kinderbetreuungskosten sind unter bestimmten Voraussetzungen als Sonderausgaben abziehbar. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Kinderbetreuungskosten". (Quelle: Deubner Verlag)
How can taxation on a property sale be avoided in the event of divorce?
From a tax perspective, a sale after expiry of the 10-year speculation period is advantageous. Within this period, a tax-free sale is possible if it takes place immediately before or upon a spouse moving out, or while the marriage is still intact. In the latter case, use by the spouse is not deemed harmful, as the spouse is not yet regarded as an unrelated third party.
As of: August 2023
How can support payments to relatives be claimed for tax purposes?
Support payments to dependent relatives and children can be claimed as extraordinary expenses in the income tax return pursuant to § 33a EStG. For payments to divorced spouses, there is an option to choose between extraordinary expenses and the special expense deduction (Realsplitting). A prerequisite is that the recipient is unable to provide for their own maintenance.
As of: April 2021
How can employees apply for exemption from compulsory insurance?
Affected employees can apply for exemption from compulsory health, long-term care and unemployment insurance by submitting a written request directly to their employer. No application to the insurance providers is required. The employer processes the exemption internally.
As of: September 2022
How can mini-jobbers be exempted from compulsory pension insurance?
Marginally employed workers can submit a written exemption request to their employer at any time during the mini-job. A corresponding template is available on the Minijob-Zentrale website. The employer must then report the exemption to the Minijob-Zentrale via the DEÜV reporting procedure using pension insurance contribution group 5.
As of: September 2022
How long does the increased commuter allowance apply?
The increase in the distance allowance from the 21st kilometer onwards is limited in time and applies until the end of 2026. After that, new legislation will be required if the increased allowance is to be continued.
As of: December 2020
How long is an exemption certificate (Freistellungsbescheinigung) valid, and how is it verified?
An exemption certificate is generally valid for three years from the date of issue; a follow-up certificate should be applied for at the Finanzamt in good time before expiry. The recipient of the service can verify its validity online via the Bundeszentralamt für Steuern or have it confirmed by phone with the contractor's Finanzamt. If no valid certificate is available, the tax deduction must be applied without exception.
As of: May 2023
How long are Corona special payments of up to EUR 1,500 tax-free?
The tax exemption for Corona allowances and support payments of up to EUR 1,500 has been extended until 30 June 2021. However, this is merely an extension of the deadline – the maximum amount of EUR 1,500 cannot be paid out tax-free a second time; employers simply have more time to process the tax-privileged payment.
As of: January 2021
How can tax-free allowances be used multiple times through lifetime gifts?
Personal tax-free allowances can be claimed again every ten years. For substantial assets, it is therefore worthwhile to transfer portions of the estate early in order to use the allowance multiple times. An equal distribution of assets between spouses is also advisable so that both partners' allowances can be utilised optimally.
As of: January 2022
What is the official website of the Transparenzregister?
The official website of the Transparenzregister (transparency register) under the German Anti-Money Laundering Act is www.transparenzregister.de. It is operated by Bundesanzeiger Verlag GmbH as an entrusted body, with supervision provided by the Federal Office of Administration (Bundesverwaltungsamt).
As of: January 2020
How is a change of legal form treated for tax purposes?
The conversion qualifies as a disposal under §§ 20 ff. UmwStG: the partnership is contributed, and in return the partners receive shares in the corporation. A tax-neutral contribution is only possible if an entire business, a business unit, or a co-entrepreneur interest is transferred together with all functionally essential operating assets. Going forward, profits must also be determined via a balance sheet rather than by cash-basis accounting (Einnahmenüberschussrechnung).
As of: July 2021
How is a coercive fine imposed in connection with the property tax assessment return?
A coercive fine is imposed in two stages: first, the tax authority threatens the fine and sets a deadline. Only after this deadline has expired without compliance is the fine actually imposed. If the return is filed after the threat but before the fine is imposed, the fine is waived entirely. The minimum amount is EUR 200.
As of: February 2023
Wie nutze ich Investitionsabzugsbetrag und Sonderabschreibung?
Mit Investitionsabzugsbetrag und Sonderabschreibung lassen sich Investitionen steuerlich vorziehen. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Investitionsabzugsbetrag Sonderabschreibung". (Quelle: Deubner Verlag)
How often will the interest rate under § 238 AO be reviewed in the future?
Going forward, the interest rate will be reviewed every three years with effect for subsequent interest periods. The benchmark is the base rate under § 247 BGB as of January 1 of a given year. An adjustment will be made if the base rate deviates by more than one percent from the applicable interest rate under § 238 Abs. 1 AO.
As of: May 2022
How are bonus payments from health insurers treated for income tax purposes?
The decisive factor is whether the bonus relates to benefits of the basic health insurance. If so (e.g. preventive care, early detection), it qualifies as a contribution refund and reduces the deductible special expenses under § 10 Abs. 1 Nr. 3a EStG. Bonus payments for benefits outside basic coverage (e.g. alternative medicine, professional dental cleaning) or for health-conscious behaviour (e.g. gym membership) are not treated as contribution refunds, provided the insured person has borne the costs personally.
As of: March 2023
How must tips be recorded in an open cash register?
With an open cash register and itemized records, tips must be documented on the original receipt. Without itemized records, the cash balance including tips is counted and documented in the cash report; individual tips should be noted separately.
As of: May 2021
How must current assets be written down in the event of impairment?
Under German commercial law, the strict lower-of-cost-or-market principle requires an extraordinary write-down on current assets in every case of impairment, regardless of whether it is permanent. For tax purposes, a write-down to going-concern value (Teilwertabschreibung) is only permissible in the event of a permanent impairment, and even then only as an option. Without a permanent impairment, no Teilwertabschreibung may be recognized for tax purposes.
As of: April 2021
How should the time limits for short-term mini-jobs be applied under BSG case law?
The Bundessozialgericht has ruled that the limits of 3 months and 70 working days apply as equivalent alternatives – regardless of weekly working hours. In practice, both time limits must be reviewed. For multiple mini-jobs, working times are aggregated; for the 3-month calculation, a full calendar month counts as 30 days.
As of: August 2021
How should a shareholder pay for tradesman services rendered by their own GmbH in order to claim § 35a EStG?
The shareholder should actually pay the invoice amount by bank transfer to the GmbH's account, rather than offsetting it via the shareholder current account. Only then is the payment flow to an account of the service provider documented within the meaning of § 35a Abs. 5 S. 3 EStG, and the tax reduction will be recognised.
As of: December 2022
How should you respond to a suspicious email regarding the transparency register?
The BMF advises not to respond to such emails, not to register on the websites referenced, and not to make any payments. When in doubt, the notification obligation should be fulfilled exclusively via the official website www.transparenzregister.de.
As of: January 2020
How should driving schools issue their invoices while the legal situation remains unresolved?
We recommend issuing invoices without separately stated VAT. If VAT is shown openly, the driving school owes it even if the service is later classified as tax-exempt – and all invoices would then have to be corrected. The specific approach should, however, be discussed with the Steuerberater (German Certified Tax Advisor) on a case-by-case basis.
As of: March 2016
How do companies that have already received Überbrückungshilfen III Plus apply for Q4 2021?
Companies that have already applied for Überbrückungshilfen III Plus for the period July to September 2021 can submit a simplified amendment application for Q4 2021. Those who have not yet filed an application can submit an initial application covering the full funding period from July to December 2021.
As of: November 2021
How and when is the mobility premium applied for at the tax office?
The mobility premium (Mobilitätsprämie) is granted by the Finanzamt upon application; the relevant form is part of the income tax return and can be submitted together with it. The application must be filed within four calendar years following the year for which the premium is claimed. It is only assessed if the calculated premium exceeds €10.
As of: March 2022
How do extraordinary depreciation and going-concern value write-downs differ?
Under German commercial law, the term used is extraordinary depreciation (§ 253 Abs. 3 Satz 3 and Abs. 4 HGB), while tax law refers to the going-concern value write-down (Teilwertabschreibung, § 6 Abs. 1 Nr. 1 Satz 2 EStG). Both concepts address the same underlying issue: a loss in value of an asset. Differences arise, however, in their specific application to fixed and current assets, as well as in whether they are mandatory, optional, or prohibited.
As of: April 2021
How does the tax treatment of expropriation differ from compulsory auction?
Expropriation occurs without any opportunity for the owner to participate and therefore does not trigger a disposal transaction under § 23 EStG. A compulsory auction, by contrast, can be averted by the debtor, which is why intentional action is presumed. As a result, only the compulsory auction is potentially taxable.
As of: May 2022
How did the Rheinland-Pfalz Tax Court rule on a lessee's renovation costs incurred before the opening of business?
The Rheinland-Pfalz Tax Court held that when an entire commercial business is leased (in this case, a snack bar), Section 2(5) GewStG applies and the lessee is treated as a fictitious new establishment. As a result, renovation costs incurred after the lease began but before the actual opening of business are deductible for trade tax purposes. Participation in commercial activity is deemed to commence from the start of the lease.
As of: February 2022
Wie versteuere ich Gewinne aus Kryptowährungen?
Gewinne aus Kryptowährungen können als private Veräußerungsgeschäfte steuerpflichtig sein. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Kryptowährungen". (Quelle: Deubner Verlag)
Wie versteuere ich die private Nutzung meines Dienstwagens?
Die Privatnutzung eines Dienstwagens wird pauschal oder per Fahrtenbuch versteuert. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Dienstwagennutzung Arbeitnehmer". (Quelle: Deubner Verlag)
How is the contribution burden distributed in the Künstlersozialversicherung (German Artists' Social Insurance)?
Funding comes from three sources: the artist or publicist pays 50%, the commissioning company contributes 30% via the Künstlersozialabgabe (artists' social security levy), and the federal government covers the remaining 20% as a subsidy.
As of: January 2022
What is the maximum number of working days that can be claimed for the commuter allowance?
For a 5-day work week, the tax office accepts a maximum of 230 days per year; for a 6-day work week, up to 280 days. Vacation days and sick days must be deducted, as only actual trips made may be claimed.
As of: January 2022
How many family home trips per week are deductible under a dual household arrangement?
One family home trip per week between the residence and the primary place of work is deductible, even if the taxpayer commutes more often (§ 9 Abs. 1 S. 3 Nr. 5 S. 5 EStG). EUR 0.30 may be claimed per full kilometer of the one-way distance.
As of: November 2023
What was the procedural history in the BFH ruling VI R 8/19 on death benefits?
At first instance, the Finanzgericht (tax court) ruled in favor of the plaintiff heiress and treated the death benefit as tax-exempt under § 3 Nr. 11 EStG. However, the BFH overturned this decision, holding that the death benefit must be treated as taxable employment income under § 19 EStG.
As of: September 2021
How are small gifts during a company event included in the EUR 110 limit?
If an employee receives a small gift during a company event, for example a token of appreciation worth up to EUR 60, its value must be included when calculating the EUR 110 limit per participant. The total amount granted per participant, including such small gifts, must not exceed EUR 110 gross in order to preserve the input VAT deduction.
As of: August 2023
How are full-time apprentices and students classified for tax purposes?
They are treated as employees on a fixed-term contract with a primary place of work. As a result, the same restrictions apply to their travel, accommodation, and meal expenses as to employees permanently assigned to a primary place of work.
As of: October 2020
How are bonuses attributed for family-insured persons?
Bonuses paid to family-insured participants are attributed to the primary insured person. They are therefore reported in that person's income tax return and may reduce special expenses (Sonderausgaben), provided they relate to basic insurance benefits.
As of: March 2023
How are maintenance expenses treated for partially damaged business buildings?
If the business building is only partially destroyed, maintenance expenses can be claimed as immediately deductible within the first three years – up to a maximum limit of €70,000. The same rule applies to movable assets, but without the €70,000 cap.
As of: October 2021
How are tenant compensation payments treated for tax purposes in cases of demolition and new construction?
If a building is demolished and a new one is constructed in its place, the construction costs qualify as production costs. In this case, settlement payments for existing tenancies also count as subsequent acquisition or production costs and are not immediately deductible (see BFH ruling of 01.10.1975 – I R 243/73).
As of: April 2023
How are cleaning costs for work clothing treated for tax purposes?
For external cleaning, the full invoice amounts can be claimed. For washing in your own machine, flat-rate values per kilogram of laundry apply, graduated by household size and washing type (boil wash, colored wash, delicate wash) as well as drying and ironing. These flat rates cover all ongoing costs, including purchase and repair of the machine.
As of: December 2021
How are partial interest periods with different interest rates calculated?
If different interest rates apply within a single interest period (e.g., 2018 and 2019), the period is divided into partial interest periods and calculated on a day-by-day basis. Pursuant to § 238 Abs. 1a AO, the German interest calculation method applies: each month counts as 30 days and each year as 360 days. The 31st of a month is treated as the 30th; if the period ends on 28 or 29 February, interest is calculated only up to that date.
As of: May 2022