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 9 / 14
Which legal forms may opt for corporate taxation?
Eligible to apply are partnerships under § 25 UmwStG, i.e. OHG, KG, GmbH & Co. KG and Partnerschaftsgesellschaften. The GbR is excluded from the option. In addition, at least 75% of the partners must approve the change of legal form by shareholder resolution pursuant to § 217 Abs. 1 UmwG.
As of: July 2021
Which legal basis permits a shorter depreciation period for buildings?
Section 7 (4) sentence 2 EStG allows taxpayers to apply a shorter actual useful life instead of the flat-rate depreciation rates under Section 7 (4) Nos. 1 and 2 EStG. The burden of proof lies with the taxpayer, who typically meets this requirement by submitting an expert appraisal.
As of: March 2023
What is the legal situation for the home office (häusliches Arbeitszimmer) following the Annual Tax Act 2022?
The Annual Tax Act 2022 amended § 4 Abs. 5 Satz 1 Nr. 6b EStG. Since then, a deduction of income-related expenses for a home office is also possible based on a statutory annual lump sum. The ruling of the FG Berlin-Brandenburg was issued under the previous legal framework, but its principles regarding medical necessity remain relevant as an interpretive guide.
As of: January 2023
Welche Reisekosten kann ich geltend machen?
Fahrtkosten, Verpflegungspauschalen und Übernachtung lassen sich als Reisekosten ansetzen. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Reisekosten". (Quelle: Deubner Verlag)
What role does the distribution channel play in assessing the add-back of trade fair booth rental costs?
The distribution channel is a key criterion. If sales are not made directly to end customers but indirectly through an established dealer network, trade fair participation is not strictly necessary for product sales. In this case, alternative advertising options are available, meaning the booth does not permanently serve the business operations and no add-back applies.
As of: July 2022
What role does the VAT Directive play in assessing ancillary services?
Under Art. 134(a) of the VAT Directive (MwStSystRL), supplies of goods and services are excluded from the tax exemption if they are not essential to the underlying exempt supply. This requirement clarifies the interpretation of § 4 No. 16 UStG and means that only services closely linked to care are exempt.
As of: November 2023
What role does the dedication of assets play for the tax-privileged status of a sports club?
The dedication of assets to the club's purpose is a prerequisite for tax-privileged status (Gemeinnützigkeit) and must continue even beyond the club's dissolution. It ensures that the club's assets are used exclusively for the statutory purpose and not diverted for private use. Without this commitment, the tax-privileged status is at risk and tax benefits no longer apply.
As of: May 2022
What role does long-term commitment to the employer play in distinguishing initial from secondary vocational training?
A long-term commitment to the employer, for example through repayment obligations upon early termination of the employment relationship, is an indication that professional activity is the primary focus. This means the qualification acquired in the first training phase is already being used on a permanent basis. This argues against a unified initial training and therefore against entitlement to child benefit.
As of: June 2023
Which schools qualify for the special expenses deduction for school fees?
Eligible schools include those under independent sponsorship, such as foundation schools, as well as predominantly privately funded schools. A key requirement is that the school is recognized by the competent state ministry to issue diplomas. Without this official state recognition, the special expenses deduction under § 10 Abs. 1 Nr. 9 EStG is not available.
As of: February 2024
What special depreciation applies to business buildings destroyed by a natural disaster?
In cases of irreparable damage to a business building, a special depreciation of up to 30% is granted. It can be claimed within the first three years after completion of the new building, with the option to spread it across this period. The overall cap of 30% must not be exceeded.
As of: October 2021
Which special deadlines apply to the 2019 and 2020 tax returns due to COVID-19?
For 2019, the deadline was extended to 31 August 2021 if the return was prepared by a Steuerberater (German Certified Tax Advisor). For 2020, the deadline for self-prepared returns ended on 1 November 2021, while returns prepared by a Steuerberater were due on 31 May 2022.
As of: July 2021
What special rule applies to people with disabilities?
Taxpayers with a degree of disability of at least 70% or at least 50% combined with a walking impairment may deduct actual travel costs instead of the flat rate (§ 9 Abs. 2 EStG). Additional trips between home and place of work are also deductible. Proof is provided by an official document.
As of: January 2022
Which VAT exemption is still available for sports clubs under the UStG?
For sports clubs, a VAT exemption is now only possible under Section 4 No. 22 lit. b UStG for sporting events. Any broader general exemption could only be achieved through legislative amendment.
As of: May 2022
Which tax class combinations can spouses or registered partners choose?
Spouses and registered partners with unlimited tax liability who are not permanently separated can choose between the combinations IV/IV and III/V for wage tax withholding. Under III/V, the higher earner receives tax class III and the lower earner tax class V. Alternatively, the factor method (IV/IV with factor) is available upon application.
As of: May 2022
Which distance is used to calculate the commuter allowance (Entfernungspauschale)?
The basis is generally the shortest road connection between your home and your first place of work, regardless of the means of transport. A longer route may only be used if it is more favorable in terms of traffic (saving at least 10% of travel time) and is actually used. Detours, for example to pick up passengers, are not deductible.
As of: January 2022
What electricity usage is required for eligibility?
Apart from grid feed-in, the generated electricity must be used exclusively for the owner's own residential purposes; use in a home office is not detrimental. For co-entrepreneurships, it is sufficient if at least one co-entrepreneur uses the electricity for private residential purposes. Detrimental, however, is electricity consumption by tenants generating rental income exceeding €520 in the assessment period, or use for the owner's or third parties' business purposes.
As of: January 2022
What hourly wage limit applies to social-security-exempt Sunday, holiday, and night-work bonuses (SFN)?
Under § 1 Abs. 1 SvEV, the social security exemption for Sunday, holiday, and night-work bonuses no longer applies if the calculation base exceeds €25 per hour. Only the portion above €25 is then subject to social security contributions. For mini-jobs, this threshold is rarely relevant in practice.
As of: May 2022
Which moving expenses are deductible in the case of a job-related relocation?
Deductible items include transport costs for household goods (including tolls and transport insurance), travel expenses to the new place of residence as well as for apartment searches and viewings (also for an accompanying person), rent compensation in case of double rent payments, and customary local broker fees for the new apartment. In addition, other moving-related expenses such as renovation costs for the previous apartment, connection of household appliances, or apartment advertisements may be claimed.
As of: August 2021
Which companies qualify as specialist firms for energy-related measures?
Specialist firms include skilled trade businesses from the sectors relevant to building renovation, such as bricklayers and concrete workers, plasterers, painters and varnishers, carpenters and joiners, roofers, plumbers, heating installers, electricians, metalworkers, stove and air heating installers, roller shutter and sun protection technicians, chimney sweeps, tilers, and specialised window fitters. The decisive factor is that the company operates in the field of the respective energy-related measure.
As of: April 2024
Which businesses can participate in the OSS procedure?
Businesses established in Germany that provide services to private individuals in the EU or carry out intra-Community distance sales are eligible to participate. Operators of electronic marketplaces (e.g. Amazon, eBay) through which supplies between businesses and private individuals in the EU are processed can also use the procedure. Likewise included are non-EU businesses that maintain a domestic facility such as a warehouse for dispatching goods.
As of: June 2021
Which companies are newly eligible to apply for Bridging Aid III (Überbrückungshilfe III) following the adjustments?
Eligibility now extends to companies founded up to 31 October 2020 (previously 30 April 2020), as well as companies under the sponsorship of religious communities, such as hospitals or kindergartens. This significantly broadens the range of eligible businesses.
As of: April 2021
Which companies are subject to the levy under the Künstlersozialkasse?
Classic exploiters such as publishers, press agencies, theatres, orchestras and museums are subject to the levy. The same applies to companies that use artistic or journalistic services on more than a sporadic basis (at least once per year). In addition, the general clause covers companies that organise more than three events per year involving artists or journalists, or generate revenue from such events.
As of: January 2022
Which storm damages are deductible as extraordinary expenses under § 33 EStG?
Deductible items include repair and replacement costs for the home, furniture, household goods, and clothing, as well as disposal expenses, appraisal fees, and interest on a disaster-related loan. Cars and garages do not qualify. Only the portion not covered by insurance and exceeding the reasonable burden threshold (zumutbare Belastung) can be claimed.
As of: October 2021
What is the earnings threshold for a Minijob under § 8 Abs. 1 Nr. 1 SGB IV?
Marginal employment (Minijob) exists when the regular monthly remuneration does not exceed €450. If this threshold is exceeded, the position no longer qualifies as a Minijob and instead becomes employment subject to full social security contributions.
As of: August 2021
Which simplification rule applies to bonus payments until 31 December 2023?
The tax authorities disregard bonus payments up to a threshold of EUR 150 per year, even if they relate to basic health insurance benefits. If the bonus payment exceeds this amount, the excess must generally be deducted from special expenses (Sonderausgaben) as a contribution refund. However, the taxpayer may provide proof that the excess amount does not relate to basic benefits either and therefore has no tax effect.
As of: March 2023
Which comparative data may be used to verify the customary local rental period?
According to the BFH ruling of 26.05.2020 (IX R 33/19), official comparative data may also be used even if they are not publicly published but only made available upon request. In addition, occupancy rates can serve as a comparative benchmark.
As of: January 2021
What asset and income limits apply to the recipient of the maintenance payments?
The recipient's assets must not exceed €15,500; otherwise, the deduction as an extraordinary expense is excluded. A reasonable residential property and items of personal value are not counted. The recipient's own income and earnings exceeding €624 per year reduce the deductible maximum amount; in addition, a lump-sum allowance of €180 is deducted.
As of: April 2021
Which disposals are covered by § 16 EStG?
§ 16 EStG covers the sale of an entire business or a separate division (Abs. 1 Nr. 1), the sale of a co-entrepreneur's interest in a partnership (Abs. 1 Nr. 2), and the sale of the entire interest of a personally liable partner in a KGaA (Abs. 1 Nr. 3). The resulting gains qualify as extraordinary income and may be taxed at a preferential rate under § 34 EStG.
As of: June 2023
What is the requirement for deducting tax liabilities as estate liabilities under Section 10 (5) No. 1 ErbStG?
Tax liabilities are only deductible to reduce the enrichment if the decedent personally fulfilled the tax-triggering event. If the tax-triggering actions are taken only by the heirs, the necessary connection to the decedent is missing, and a deduction is not permitted.
As of: October 2023
What is the requirement for the SIM card to qualify for the tax exemption under § 3 Nr. 45 EStG?
The tax exemption only applies if the SIM card provided by the employer is used in a company-owned device. If the SIM card is used in the employee's private device, the tax exemption under § 3 Nr. 45 EStG does not apply.
As of: February 2023
What are the general requirements for child benefit during vocational training?
Under § 32 Abs. 4 S. 1 Nr. 2 a EStG, the child must be preparing seriously and consistently for their career goals. A mere training relationship is not sufficient; actual training measures must be undertaken. An exception applies only in cases of illness-related interruption, provided the training position and the intent to continue training remain in place.
As of: May 2022
What are the general requirements for deducting pre-acquisition income-related expenses (vorweggenommene Werbungskosten)?
Under § 9 Abs. 1 S. 1 EStG, expenses incurred to acquire, secure, and maintain income are deductible as Werbungskosten. Pre-acquisition expenses are likewise deductible, provided there is a sufficient factual and temporal connection to the later income.
As of: October 2023
What are the requirements for the relief amount for single parents under § 24b EStG?
The taxpayer must be a single parent, be entitled to child benefit or the child allowance, and the child must belong to their household. Single parent status means that no spousal splitting is available and no other adult lives in the household. Exceptions apply to adults for whom child benefit is received.
As of: December 2021
What are the requirements for the reduced tax rate under § 34 Abs. 3 EStG?
The taxpayer must have reached the age of 55 or be permanently incapacitated for work within the meaning of social security law. In addition, the capital gain must not exceed EUR 5 million. The relief can only be claimed once in a lifetime and requires a formal application.
As of: June 2023
What requirements apply to the special depreciation under § 7b EStG?
The apartment must be located in the EU or an equivalent state, be newly built, and meet the requirements of § 181 Abs. 9 BewG (including a self-contained unit with its own entrance, kitchen, bathroom, and at least 23 sqm of living space). It must also be rented out for residential purposes on a paid basis in the year of acquisition/construction and the following nine years. For building applications from 2023 onwards, the Effizienzhaus-40 standard with a sustainability class is additionally required.
As of: March 2023
What are the requirements for the simplification rule under Section 25b of the German VAT Act (UStG)?
The supply must be preceded by an intra-Community acquisition, and the first customer must not be established in the country of destination. The first customer must use a VAT ID number of a Member State other than the country of departure or destination vis-à-vis both the first supplier and the final customer. Furthermore, VAT must not be shown separately; the invoice must refer to the triangular transaction and the reverse charge of tax liability and must include the VAT ID numbers of both the first and the final customer.
As of: February 2024
What are the requirements for restructuring proceedings under the StaRuG?
The prerequisite is imminent insolvency of the company within the next 24 months. If this applies, an application can be filed with the competent restructuring court. Until the court issues its decision, the obligation to file for insolvency is suspended.
As of: April 2021
What requirements must initial training meet for tax purposes?
For tax purposes, initial training must last at least 12 months and conclude with a final examination. A mere interruption or a change of degree program without prior completion does not count as a completed initial degree and therefore does not allow subsequent educational measures to qualify as income-related expenses (Werbungskosten).
As of: August 2023
What are the requirements for entitlement to insolvency benefits (Insolvenzgeld)?
Entitlement to Insolvenzgeld exists if the employer is unable to pay wages in full or in part due to financial difficulties and insolvency proceedings have been opened against the employer's assets. Insolvenzgeld replaces the unpaid wages and is paid out as a one-time payment by the Bundesagentur für Arbeit (Federal Employment Agency).
As of: September 2022
What requirements must be met to apply the one-fifth rule (Fünftelregelung) to overtime compensation?
The underlying activity must span at least two assessment periods and have lasted longer than twelve months (§ 34 Abs. 2 Nr. 4 EStG). In addition, the payment must serve a specific purpose, for example in connection with the termination of the employment relationship. Finally, the overtime must be paid out as a lump sum within a single assessment period.
As of: March 2022
What requirements must be met for the tax incentive under § 35c EStG?
The building or apartment must be located within the EU, used for the owner's own residential purposes, and at least 10 years old at the start of the measure (the start of construction is decisive). The work must be carried out by a qualified specialist company that issues a certificate based on the official template. In addition, an invoice must be available showing the eligible measures, the labour costs, and the address of the property.
As of: April 2024
What requirements must be met to qualify for the commuter mobility bonus (Mobilitätsprämie)?
The applicant must be subject to unlimited or limited income tax liability in Germany under § 1 EStG and must be a commuter traveling at least 21 kilometers (one-way) between their home and primary place of work. In addition, the taxable income—after deducting work-related expenses (Werbungskosten) and special expenses (Sonderausgaben)—must fall below the basic tax-free allowance (Grundfreibetrag), and total work-related expenses must exceed the standard allowance of €1,000.
As of: March 2022
What requirements does the tax office typically impose for deducting a home office?
The tax office generally requires that the home office either forms the focal point of all professional activity or that no other workplace is available. If these conditions are not met, the deduction of work-related expenses is, in principle, denied. However, according to fiscal court rulings, health-related reasons may justify an exception.
As of: January 2023
What are the advantages of the OSS procedure?
The key advantage is that businesses no longer need to register for VAT in every individual EU member state where they supply services to private customers. Instead, they can pay the VAT owed centrally to the Bundeskasse (German Federal Treasury). This significantly reduces administrative effort, as taxation still takes place in the country of destination, but is processed in a consolidated manner through the BZSt (German Federal Central Tax Office).
As of: June 2021
Which payments remain permissible in an insolvency scenario under § 15b InsO?
Under § 15b InsO, payments may only be made to maintain ongoing business operations, to implement measures aimed at remedying the insolvency, to prepare insolvency proceedings, or with the consent of the insolvency administrator. VAT liabilities incurred by the company or the insolvency administrator qualify as liabilities of the insolvency estate (Masseverbindlichkeit).
As of: April 2021
Which payment requirements does § 35a Abs. 5 S. 3 EStG impose for the tax reduction on tradesman services?
Payment must be made cashlessly to a bank account of the service provider held at a credit institution. A proper invoice is also required. Cash payments or mere set-offs without a documented bank transfer are not recognised.
As of: December 2022
What special requirements apply to corporations under the Neustarthilfe (restart aid)?
The applying shareholder must work at least 20 hours per week for the corporation. In single-shareholder corporations, they must hold 100 % of the shares; with multiple shareholders, at least 25 %. In addition, no more than one part-time employee may be employed, the company must have been established before 1 May 2020, and no application for Überbrückungshilfe III (bridging aid III) may have been filed.
As of: March 2021
Which energy-efficiency measures are tax-privileged under § 35c EStG?
Eligible measures include thermal insulation of walls, roof surfaces and floor slabs; replacement of windows and exterior doors; installation or replacement of ventilation systems; replacement of heating systems; and optimization of heating systems that are at least 2 years old. The installation of digital systems for energy-related operational and consumption optimization (smart home), as well as fees for certified energy consultants, are also eligible.
As of: April 2024
Which increased time limits applied to short-term mini-jobs during the 2021 Corona pandemic?
From 01.06.2021 to 31.10.2021, the time limits for short-term employment were temporarily raised to 4 months or 102 working days. Outside this period, the regular limits of 3 months or 70 working days under § 8 Abs. 1 Nr. 2 SGB IV apply again.
As of: August 2021
What are the financial implications of the 2022 Tax Relief Act (Steuerentlastungsgesetz 2022) for public budgets?
According to preliminary calculations by the Federal Ministry of Finance, the combined annual tax revenues of the federal government, the federal states and the municipalities will be approximately EUR 4.5 billion lower than they would have been without the relief measures.
As of: March 2022