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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Must care-related conversion costs be separated from other renovation measures?
Yes, a clear separation of disability-related conversion costs from general modernization or renovation measures is strictly required. Only the costs solely attributable to a disability or illness are deductible as außergewöhnliche Belastung (extraordinary expenses). Appropriate documentation and, where applicable, a medical certificate should be available.
As of: November 2019
Are care facilities required to disclose cooperation agreements with physicians?
Yes, care facilities must disclose the existence and content of cooperation agreements with physicians, as well as their participation in physician networks. Agreements with pharmacies regarding the supply of medications must also be disclosed, enabling prospective residents to assess the quality of medical care available at the facility.
As of: December 2013
Do care workers need to be trained nursing professionals for the costs to be tax-deductible?
No, formal training as a nursing professional is not strictly required. Expenses for caregivers without nursing qualifications can also be deducted as außergewöhnliche Belastung (extraordinary expenses) if they perform typical care and household tasks such as cooking, shopping, or laundry, thereby making the illness more bearable.
As of: November 2016
Must invoice recipients be able to receive eRechnungen (electronic invoices) starting in 2025?
Yes. Since receiving electronic invoices does not require the recipient's consent, all domestic businesses in the B2B sector must be technically able to receive and process standard-compliant eRechnungen from 01.01.2025. This also applies to physicians and landlords who opt for VAT. The recipient's consent is only required if the invoice does not comply with the EU standard.
As of: November 2023
Are pensioners required to file a tax return even without a request from the tax office?
Yes, pensioners are generally required to file a tax return if their taxable income exceeds the basic tax-free allowance (Grundfreibetrag). It is a common misconception that a return is only necessary upon explicit request by the tax office. The obligation arises independently from German tax law.
As of: November 2011
Must SFN supplements be paid in addition to the base wage?
Yes, supplements for Sunday, public holiday, or night work are exempt from tax and social security contributions only if they are granted on top of the base wage. Offsetting them against the base wage is not permitted. Otherwise, the supplements lose their tax and contribution exemption.
As of: May 2022
Must tips paid to employees be recorded?
In principle, there was no recording obligation for tips paid to employees. However, with the introduction of electronic cash registers with a certified technical security module (TSE), the tax authorities now require cash tips to be booked as a separate transaction unless they are clearly separated from the cash on hand. Non-cash tips (EC or credit card) must always be secured via the TSE.
As of: May 2021
Do foreign donation recipients need to register in Germany?
Yes. Recipients not domiciled in Germany must be entered in the donation recipient register (Zuwendungsempfängerregister) maintained by the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt) in order to issue donation receipts that are recognized for tax purposes in Germany.
As of: December 2024
Müssen elektronische Kassensysteme gemeldet werden?
Für elektronische Kassensysteme besteht eine Meldepflicht beim Finanzamt; Fristen und Fundstelle im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Are time sheets required for mini-jobbers with a fixed salary?
Yes, time records must also be kept for marginally employed staff with a fixed monthly salary. The German Minimum Wage Act (Mindestlohngesetz) requires employers to document the start, end and duration of daily working hours for mini-jobbers. The records must be prepared no later than the seventh subsequent day and retained for at least two years.
As of: July 2013
Are statutory pensions taxable in Germany?
Yes, statutory pensions are subject to income tax. Since January 2005, the deferred taxation system applies: contributions to retirement provision are progressively exempt from tax, while pension payments received later are taxed in return. A study found that 84% of Germans are unaware of this tax liability.
As of: November 2014
Must tax elections be exercised in a profit-reducing manner in the case of discharge of residual debt?
Yes, by analogy with restructuring gains, tax elections must also be exercised in a profit-reducing manner in the case of discharge of residual debt. This ensures that any available reductions are fully utilized before the tax exemption takes effect.
As of: December 2024
Must transmission and archiving systems meet specific standards?
Yes, the recipient must ensure that the transmission, archiving, and conversion systems comply with the German Principles of Proper Bookkeeping (GoB). Subsequent changes to the invoice file must not be possible, and any loss of the file must be ruled out.
As of: November 2012
What criterion determines whether an employer benefit can be credited against the minimum wage?
The decisive factor is the purpose of the payment. If it compensates the regular, contractually owed work performance, it can be credited against the minimum wage. However, if it alters the balance between standard performance and wages to the employee's detriment — for example, by compensating additional hardships or overtime — crediting is excluded.
As of: June 2015
What allocation method applies when splitting the capital gain in cases of partial third-party letting?
Allocation is based on the ratio of living areas: the area continuously used for the owner's own residential purposes is set in relation to the area let to third parties on a day-by-day basis. Only the portion of the capital gain attributable to the rented rooms is taxable under § 22 Nr. 2 in conjunction with § 23 EStG.
As of: July 2023
What criteria does Focus Money use to evaluate tax advisory firms in its Top Tax Advisor ranking?
Focus Money evaluates tax advisory firms based on several criteria: firm structure and organisation, staff training, and professional qualifications. The latter is assessed through detailed tax questions posed by tax auditors and the tax economists of Leibniz University Hannover.
As of: April 2018
What criteria determine the tax classification as a Minijob?
Whether marginal employment exists is determined exclusively by social security law criteria (§ 8 SGB IV). This ensures alignment between the social security and wage tax treatment and avoids any divergence between them.
As of: February 2023
Do partnerships also benefit from the planned PV tax exemption?
Yes, general partnerships, limited partnerships and other partnerships are also to be exempted from tax if the operation of a PV system alone leads to classification as a commercial enterprise under § 15 Abs. 3 Nr. 1 EStG. The above-mentioned capacity thresholds must be observed.
As of: October 2022
Does the skilled labor shortage in healthcare justify a different assessment?
No. The BSG has expressly ruled that a skilled labor shortage has no bearing on the legal assessment of mandatory social insurance coverage. Social security rules may not be suspended merely to make a profession more attractive through higher pay relieved of social security contributions.
As of: June 2019
Are newspaper carriers sufficient to establish a nighttime gritting duty?
No. Individual persons such as newspaper carriers who are out before the general gritting duty begins (approximately 6:00 a.m.) do not generate sufficient traffic volume to justify a preventive nighttime gritting duty on the part of the municipality. They must adjust to the prevailing weather conditions themselves.
As of: November 2012
Are regular newspaper ads at standard rent levels sufficient proof of intent to rent?
No, quarterly ads in national newspapers seeking rent based on the standard rent index are not sufficient in cases of long-term vacancy. The BFH requires an adjustment of strategy, such as rent reductions or alternative marketing channels like brokers or online portals. Otherwise, evidence of a genuine intent to generate rental income is lacking.
As of: February 2013
Is in-kind support sufficient to deduct a child's insurance contributions for tax purposes?
No, merely providing in-kind support (e.g., free board and lodging in the parental home) is not sufficient. In its ruling of 13 March 2018 (X R 25/15), the BFH held that parents must have actually paid or reimbursed the contributions to the child in order to deduct them.
As of: September 2019
Is the invoice date sufficient as an indication of the time of supply for input VAT deduction?
Yes, according to the BFH ruling of 01.03.2018 (V R 18/17), the time of supply can be derived from the invoice issue date. The prerequisite is that, based on the circumstances of the individual case, it can be assumed that the service was rendered in the month the invoice was issued. A separate statement of the service date is then not strictly required.
As of: June 2018
Is a printout of an electronic bank statement sufficient for the tax office?
No, a paper printout of an electronically transmitted bank statement does not satisfy the statutory retention requirements. Since the statement was originally transmitted in electronic form, the electronic original must also be stored and retained in an audit-proof manner.
As of: September 2014
Is the service charge statement sufficient as proof for the tax reduction under Section 35a EStG?
Yes, a residential service charge statement or a certificate following the template of the tax authorities (Annex 2 of the BMF letter dated 9 November 2016) is sufficient as proof. However, the statement must show the type, content and date of the service, the service provider and recipient, as well as the fee owed, including a reference to the cashless payment.
As of: August 2023
Is a paper printout of an invoice received by email sufficient?
No, a mere paper printout of an electronic invoice is not sufficient. Storing the file in the email account is also inadequate. The invoice must be archived electronically and in an audit-proof manner; otherwise, a fine may be imposed.
As of: November 2012
Is a desk in the office sufficient to deny a home office deduction?
No, a mere desk with computer and telephone in a laboratory room is not sufficient to exclude the deduction for a home office. The decisive factor is whether the workplace is actually suitable for all required tasks. If essential equipment such as a printer, scanner, or specialist literature is missing, the office room cannot be regarded as 'another workplace' within the meaning of tax law.
As of: October 2016
Is a general consulting engagement sufficient to avoid managing director liability?
No. According to the BGH ruling of 27 March 2012, a specific review of insolvency status must be commissioned. A merely general consulting engagement is not sufficient to release the managing director from personal liability.
As of: August 2013
Is a single eligible child sufficient to secure the tax exemption under Section 23 EStG?
No. The BFH has ruled that the mere co-use of the dwelling by children who no longer qualify under Section 32 EStG precludes the tax exemption. Even if a younger child eligible for child benefits also lives in the dwelling, use by the children who no longer qualify is detrimental to the tax exemption.
As of: October 2023
Is a scanned copy of an invoice sufficient for the EU input VAT refund procedure?
Yes. According to the ruling of the Cologne Fiscal Court of 20 January 2016 (Az. 2 K 2807/12), it is sufficient for the entrepreneur to scan a copy of the invoice and submit it electronically to the competent authority within the statutory deadline. A scanned original is not strictly required.
As of: April 2016
Is a nearby workshop sufficient to establish a spatial connection with the household?
No. Even a workshop located only a few kilometers away does not meet the requirement of an immediate spatial connection to the household. In the case decided, a distance of 4 km already disqualified the taxpayer from claiming the tax reduction.
As of: August 2016
Is a contractual side agreement between shareholders sufficient to ensure exemption from social security contributions?
No, the blocking provision must be set out in the articles of association themselves. Only then does it have the required corporate law effect, which establishes sufficient freedom from instructions and thus exemption of the managing director from social security contributions.
As of: January 2017
Is a theoretical possibility of private use sufficient to apply the 1% rule?
No. The BFH expressly contradicted the tax office: if a theoretical possibility of private use were sufficient, even very large trucks would have to fall under the 1% rule, as they too could be used for private errands. What matters, therefore, is the typical intended purpose of the vehicle.
As of: September 2016
Is it sufficient if cash register software can only be manipulated by specialists?
No. According to the FG Münster, it is irrelevant by whom or with what effort manipulation is possible. Even if only a trained IT specialist using additional programs could alter data unnoticed, the software fails to meet the requirements for a proper cash register system. The decisive factor is that complete recording of all revenues must be technically ensured.
As of: April 2017
Is continuous personal use during the middle year sufficient for the three-year rule under § 23 EStG?
Yes. According to BFH case law (IX R 37/16), it is sufficient if the property is used continuously for own residential purposes throughout the middle calendar year of the three-year period. In the year of sale and the year preceding it, partial use is sufficient, provided that overall there is an uninterrupted period of personal use.
As of: July 2023
Is additional organizational effort sufficient grounds to reject part-time work?
No. According to the LAG Köln, a certain level of organizational effort is required and inherent to the law whenever part-time arrangements are established. Arguments such as additional shift handovers or potential production delays are not sufficient on their own to reject a part-time request. The employer must demonstrate concrete, substantial operational reasons.
As of: August 2013
Does a separate household management between spouses jeopardize joint tax assessment?
No, separate cost management between spouses does not, in principle, preclude joint assessment. The Tax Court of Münster has held that separate cost management is now common even among spouses living together, and therefore does not contradict the continued existence of a marital union.
As of: March 2017
Does a physician's high qualification as a higher-level service preclude mandatory social insurance coverage?
No. The BSG clarifies that the special quality of medical practice does not automatically exclude employment subject to social insurance. The decisive factor is solely whether the physician works under instructions and is integrated into the work organization.
As of: June 2019
Since when has the solidarity surcharge been levied and at what rate?
The solidarity surcharge was introduced in 1991 to finance the reconstruction of eastern Germany. Since 1995, it has been levied regularly under the Solidarity Pact, initially at 7.5% and since 1998 at 5.5% of wage and income tax.
As of: August 2013
Does the German ministerial draft provide for sanctions during the retroactive reporting period?
No, the German ministerial draft dated 30 January 2019 does not provide for sanctions for incorrect or omitted reporting of tax arrangements whose first implementation step occurs between 25 June 2018 and 1 July 2020. However, this does not protect against possible sanctions imposed by other Member States whose laws may also apply.
As of: July 2019
Are exclusions of severance compensation valid in GmbH articles of association?
Exclusions of severance compensation in GmbH articles of association are generally contrary to public policy and therefore void. In its ruling of 29 April 2014 (Az. II ZR 216/13), the BGH held that receiving adequate severance compensation upon leaving the company is a fundamental membership right of a shareholder. A complete exclusion of severance compensation is permissible only in exceptional cases.
As of: July 2014
Are attorney and court fees for a divorce tax-deductible?
According to the ruling of the FG Düsseldorf dated 19 February 2013, all attorney and court fees incurred in connection with a divorce are fully deductible as extraordinary expenses (außergewöhnliche Belastung). This includes not only the costs of the divorce itself and the equalization of accrued gains, but also arrangements regarding maintenance and pension equalization. The reasoning is that these matters must be settled within the divorce proceedings, and the spouses cannot avoid the associated costs.
As of: April 2013
Are employer subsidies to short-time work benefits tax-free?
Employer subsidies to short-time work benefits (Kurzarbeitergeld) are generally tax-free during the period from 1 March 2020 to 31 December 2021. However, if the short-time work benefits and the subsidy together exceed 80 percent of the original gross wages, the excess portion is subject to retroactive taxation. Regardless of this, the subsidies are subject to the progression clause (Progressionsvorbehalt).
As of: May 2021
Are employees covered by statutory accident insurance during a Christmas party at a Christmas market?
Yes, a company Christmas party is covered by the statutory accident insurance of the Berufsgenossenschaft even if it takes place at a Christmas market. The venue is not decisive for insurance coverage, as long as it is an official company event.
As of: December 2016
Are expenses for hosting golf tournaments tax-deductible?
No, expenses for hosting golf tournaments are non-deductible business expenses pursuant to § 4 Abs. 5 S. 1 Nr. 4 EStG. This applies even if the organizer covers the costs for course bookings, green fees, catering, and minor gifts. The BFH confirmed this position in its ruling of 16.12.2015 (Az. IV R 24/13).
As of: August 2016
Sind Aufwendungen für die eigene Bestattung steuerlich abziehbar?
Zur Abziehbarkeit vorweggenommener Bestattungskosten gibt es eine aktuelle Einordnung — Details und Fundstelle im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Are expenses for a work anniversary celebration deductible as income-related expenses?
Yes, expenses for celebrating a work anniversary can be deducted as income-related expenses from income from employment, provided they are almost exclusively work-related. In its ruling of 20 January 2016 (Az. VI R 24/15), the BFH clarified that a work anniversary is generally a professional occasion and not a predominantly private matter.
As of: November 2016
Are expenses for eliminating true dry rot tax-deductible?
Yes, the BFH (judgment of 29.03.2012, Az. VI R 70/10) ruled that remediating a building affected by true dry rot can constitute an unavoidable event. The prerequisite is that the infestation initially went undetected and that there is a concrete risk of the building becoming uninhabitable. The expenses can then be recognized as an extraordinary burden (außergewöhnliche Belastung).
As of: May 2012
Are cash payments still tax-deductible as maintenance payments?
No. From the 2025 assessment period onward, cash payments are no longer deductible as maintenance expenses – even if the money is handed over in person during family visits. A bank transfer to the recipient is now strictly required.
As of: December 2024
Are property developers liable for VAT under Section 13b UStG?
No. Under the BFH ruling of 22 August 2013 (V R 37/10), property developers (Bauträger) no longer qualify as VAT debtors under Section 13b UStG. The reasoning: property developers do not themselves provide construction services but deliver developed real estate. The reverse-charge mechanism applies only if the recipient uses the construction service received to provide a construction service of their own.
As of: December 2013