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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2304 questions · Page 13 / 47
Sind Zahlungen in die Instandhaltungsrücklage sofort abziehbar?
Zur steuerlichen Behandlung von Einzahlungen in die Erhaltungsrücklage bei Eigentumswohnungen gibt es eine aktuelle Linie — Details und Fundstelle im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Are civil litigation costs deductible as extraordinary expenses (außergewöhnliche Belastung)?
According to the BFH ruling of 12 May 2011 (VI R 42/10), civil litigation costs may, regardless of the subject of the proceedings, arise unavoidably for legal reasons and are therefore recognisable as extraordinary expenses. The FG Düsseldorf confirmed this in its ruling of 20 February 2013 (15 K 2052/12). However, the tax authorities do not generally apply this case law due to a non-application decree (BMF dated 20 December 2011), so affected assessments should be kept open.
As of: April 2013
Are bonus payments in a mini-job exempt from social security contributions?
Bonus payments in a mini-job are only exempt from social security contributions if they are also exempt from wage tax. In particular, bonuses for Sunday, holiday or night work must be paid in addition to the base wage and must comply with the limits set out in § 3b Abs. 1 Nr. 1-4 EStG. If these requirements are not met, social security contributions become mandatory.
As of: May 2022
Are bonuses subject to social security contributions during maternity leave or illness?
Yes. Because no actual work is performed during these periods, the continued bonus payments become taxable. Once the tax exemption no longer applies, the exemption from social security contributions generally ceases as well. For mini-jobs, this may cause the marginal earnings threshold to be exceeded, triggering mandatory contributions.
As of: May 2022
Have all BAFA funding programmes for business consulting been discontinued?
No, only the special Corona module has been discontinued. The other BAFA programmes promoting entrepreneurial know-how remain in place and can be used as usual.
As of: June 2020
Are operating costs and electricity costs also included in the EUR 1,000 cap?
Yes. According to BFH case law (confirmed by ruling of 12 July 2017 – VI R 42/15), both warm and cold operating costs, including electricity costs, qualify as accommodation expenses and are therefore subject to the monthly cap of EUR 1,000.
As of: June 2019
Are reduced earning capacity pensions and survivors' pensions also taxable?
Yes, taxation generally applies not only to old-age pensions but also to pensions due to reduced earning capacity and to survivors' pensions such as widows', widowers' and orphans' pensions. Here, too, the taxable portion is determined by the year in which the pension began.
As of: November 2014
Are tenants also affected by the property tax reform?
Yes, tenants are indirectly affected, as property tax is typically passed on to tenants as part of the ancillary costs. Changes in the amount of property tax therefore also impact the service charge statement.
As of: April 2018
Are services covered by general membership fees also subject to VAT?
According to the ECJ and the BFH, services provided by a sports club to its members in return for general membership fees are, in principle, subject to VAT. However, it remains to be seen whether the tax authorities will fully adopt this view. Clubs should prepare for a corresponding change in practice.
As of: May 2022
Are the tax returns for December 2012 already subject to the authentication requirement?
Yes. Since the tax returns for December 2012 are not transmitted until January or February 2013, they are already subject to the mandatory authenticated transmission. Timely registration is therefore essential.
As of: October 2012
Are the trade tax add-back provisions constitutional?
In its ruling of 16 October 2012 (Az. I B 128/12), the BFH held that the add-back provisions of the German Trade Tax Act are unlikely to be unconstitutional. The court relied on the established case law of the Federal Constitutional Court, which classifies trade tax as a constitutionally compliant 'earnings-based object tax'. A final decision by the BVerfG, however, is still pending.
As of: November 2012
Are the values agreed in the purchase contract for land and building always binding?
No. If the contractually agreed values deviate significantly from the actual market values, the tax authority may review the allocation and, if necessary, correct it by means of an expert appraisal. The decisive factors are then the real value ratios as of the date of transfer of risk.
As of: January 2023
Are damages caused by the tenant immediately deductible as income-related expenses?
Yes. Under the BFH ruling of 09.05.2017 (Az. IX R 6/16), expenses for repairing damages culpably caused by the tenant after the acquisition of the rental property may be deducted immediately as income-related expenses from rental income. The 15% threshold for acquisition-related production costs does not apply in this case.
As of: December 2017
Are inherited items subject to income tax when resold?
If inherited items are resold on a sustained and systematic basis, this can generate commercial income. Additional purchases and the sale of duplicate items also indicate a commercial activity. The fact that the items originally came from an inheritance does not protect against classification as a commercial enterprise if the other characteristics of a commercial activity are met.
As of: May 2015
Are separately remunerated services provided by sports clubs subject to VAT?
Yes, under the revised case law of the BFH, services provided by sports clubs for separate consideration are generally subject to VAT. Examples include the right to use sports facilities, the provision of sports equipment, or the sale of gear. Reliance on the VAT exemption under Art. 132 (1) (m) of the EU VAT Directive is no longer possible.
As of: May 2022
Are household-related care services still tax-deductible from 2025 if paid in cash?
No. Starting with the 2025 assessment period, the tax reduction for household-related care and support services is only granted if payment is made by non-cash transfer to the service provider's account. Cash payments are therefore expressly excluded.
As of: December 2024
Are negative acquisition costs permissible when contributing to a corporation?
The BFH had previously allowed negative acquisition costs in cases of withdrawals during the tax retroactive period. However, the legislator now clarifies that, in line with the tax authorities' view, withdrawals and contributions during the retroactive period must be taken into account when determining the contributed business assets, and negative acquisition costs are to be avoided.
As of: December 2024
Are flat-rate late-payment interest charges of 6% per year still compatible with EU law?
In its ruling C-518/14, the ECJ expressly held that the flat-rate interest of 6% is excessive and not compatible with EU law. This finding supports arguments against corresponding interest assessments in connection with input VAT corrections.
As of: April 2017
Are private eBay sales subject to VAT?
No, the sale of privately acquired items via eBay is generally not subject to VAT. The Finanzgericht Baden-Württemberg (judgment of 18 July 2012, Az. 14 K 702/10) clarified that the occasional disposal of private assets, even through several similar transactions, does not yet constitute a business activity. The decisive factor is whether the seller acts on the market like a commercial trader.
As of: September 2012
Are over-the-counter medicines from the home medicine cabinet tax-deductible?
No. According to the ruling of the Rheinland-Pfalz Tax Court of 08 July 2013 (5 K 2157/12), medicines for the home medicine cabinet such as painkillers, cold or flu remedies generally cannot be claimed as extraordinary expenses (außergewöhnliche Belastungen) without a doctor's prescription. This also applies to preventively taken medications. A tax deduction is only possible with a doctor's prescription.
As of: September 2013
Must retroactive contribution refunds from social court proceedings be reported under § 10 Abs. 4b EStG?
Yes. In its ruling of 22 March 2023 (X R 27/21), the BFH held that contribution refunds resulting from a reversal or retroactive modification of the social insurance relationship are also subject to the offsetting and add-back mechanism of § 10 Abs. 4b EStG. The term "refunded expenses" is to be interpreted broadly; the legal basis of the refund is irrelevant.
As of: August 2023
Are personally provided care services for relatives deductible as extraordinary expenses?
No. According to the ruling of the Fiscal Court (Finanzgericht) Münster of 15 April 2015 (case no. 11 K 1276/13 E), personally provided care services cannot be deducted as extraordinary expenses under § 33 Abs. 1 EStG. The statutory wording only covers actual expenditures in the form of monetary outlays or contributions in kind, but not notional values of one's own work performance.
As of: May 2015
Are actual meal expenses incurred during business trips deductible as business expenses?
No. For external business activities, the actual meal expenses incurred cannot be claimed as profit-reducing items. Instead, only the statutory per diem meal allowances pursuant to § 4 Abs. 5 Nr. 5 EStG in conjunction with § 9 Abs. 4a S. 3 EStG are deductible as business expenses.
As of: July 2022
Are unfilled bread rolls with a hot beverage considered breakfast for wage tax purposes?
No. The BFH ruled on 03/07/2019 (Az. VI R 36/17) that unfilled baked goods combined with a hot beverage do not constitute breakfast within the meaning of wage tax law. A typical component such as a spread or topping, which would be required even for a simple breakfast, is missing.
As of: October 2019
Are training costs paid by the employer considered taxable wages?
No. If the training is predominantly in the employer's business interest, the costs assumed do not constitute taxable wages for the employees. This was confirmed by the Finanzgericht Münster in its ruling of 09.08.2016 (Az. 13 K 3218/13 L). Accordingly, neither wage tax nor social security contributions apply.
As of: January 2017
Are parking fines for illegal parking that are paid by the employer considered taxable wages?
According to a ruling by the FG Düsseldorf (Az. 1 K 2470/14 L), parking fines paid by the employer on behalf of its drivers do not constitute wages subject to wage tax. The prerequisite is that the fine was imposed on the company as the vehicle owner. The tax authorities have traditionally taken a different view and treat such amounts as part of taxable wages.
As of: January 2017
Are leasing instalments for a company car withheld from salary deductible as work-related expenses?
According to the Tax Court Berlin-Brandenburg, leasing instalments for a provided car withheld by the employer are not deductible as work-related expenses (Werbungskosten) for the employee. The reasoning: by the amount of the leasing instalments, the employee waives their salary claim (salary conversion), meaning there are no own expenses incurred to acquire, secure, or maintain income within the meaning of § 9 EStG.
As of: June 2016
Are laboratory tests ordered by therapists exempt from VAT?
According to the ruling of the Finanzgericht Niedersachsen of 03.09.2015 (Az. 16 K 340/12), laboratory tests ordered by therapists as part of a medical or quasi-medical healing profession (e.g. Heilpraktiker) are exempt from VAT pursuant to § 4 Nr. 14 a sentence 1 UStG. However, the decision is not yet final, as an appeal is pending before the BFH under Az. V R 25/16.
As of: September 2016
Are medically prescribed drugs deductible as an extraordinary burden when taken as part of a diet?
Yes. Expenses for medically prescribed drugs within the meaning of § 2 AMG are deductible as medical costs under § 33 Abs. 1 EStG, even if they are taken as part of a diet. The deduction ban for dietary food under § 33 Abs. 2 Satz 3 EStG only covers dietary foodstuffs, not medicinal products.
As of: August 2015
Sinkt die Künstlersozialabgabe?
Der Abgabesatz zur Künstlersozialversicherung ändert sich — den aktuellen Satz und die Fundstelle finden Sie im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Should the Corona emergency aid feedback forms still be completed and returned?
No, recipients of the NRW emergency aid should not complete or return the feedback forms for the time being. We recommend waiting for the nationwide clarification on the settlement procedures and consulting your responsible Steuerberater (German Certified Tax Advisor) on a case-by-case basis.
As of: July 2020
Should business assets be transferred before the BVerfG ruling?
Anyone planning to transfer business assets should ideally do so before the ruling in order to take advantage of the current relief rules. Retroactive disadvantages for interim transfers are not permissible under constitutional law. Drawbacks would only arise in the unlikely event that the court declares specific relief rules void on an individual basis.
As of: August 2014
Should an appeal be filed if the tax office cancels the loss carryforward in full?
Yes, in cases involving a transfer of more than 50% of the shares, an appeal should be filed against the full cancellation of the loss carryforward. The reason is that two cases are currently pending before the BFH reviewing the constitutionality of this scenario. Affected assessments should be kept open until a decision is issued.
As of: December 2017
Should VAT be paid to the tax office even if it is not shown on the invoice?
Yes, as a precaution, VAT should be declared and paid. If the services remain subject to VAT, no back payments will arise. If the services are ultimately classified as VAT-exempt, the driving school will receive the VAT paid back, plus 6% interest on the refund.
As of: March 2016
Should recipients of the NRW emergency aid already transfer money back now?
No, until the official start of the feedback procedure, refunds to the granting authorities or to the state treasury should be avoided. Repayments should only be made after receiving the request e-mail and via the official feedback form.
As of: November 2020
Should companies immediately discard records based on the draft legislation?
No, premature disposal is not advisable as long as the law has not been finally adopted and entered into force. Until then, the existing retention periods continue to apply unchanged, and destroying records too early can have tax and commercial law consequences.
As of: April 2013
Should companies wait with the TSE conversion despite the non-objection period?
No, those affected should contact their POS system providers promptly. A further postponement beyond 30 September 2020 is not to be expected, and the required changes must be planned and implemented in good time.
As of: November 2019
Should disputed invoices be corrected promptly despite the option of retroactive correction?
Yes. Even though input VAT deduction can be preserved retroactively, invoices objected to during a tax audit should be corrected without delay. This helps businesses avoid lengthy disputes with the tax office, additional administrative effort, and potential follow-up conflicts.
As of: April 2017
Should affected companies keep their trade tax assessments open?
As long as the proceedings before the Bundesverfassungsgericht (Federal Constitutional Court) have not been decided, it is advisable to keep trade tax assessments open by filing an objection and requesting a suspension of the proceedings. This allows companies to benefit from a potential later decision in favor of taxpayers. Individual legal advice is recommended.
As of: August 2013
Should previously rejected applications for the lump-sum allowance be resubmitted after the reform?
Yes. Individuals with a degree of disability between 20 and under 50 whose application was rejected up to 2020 due to the additional requirements of § 33b Abs. 2 EStG should file a new application with the tax office from 2021 onward. With the elimination of these additional requirements, they are now entitled to the lump-sum allowance.
As of: November 2021
Does the format or printing method of the photo book affect the tax rate?
No. The standard tax rate applies even if the photo book has dimensions other than those specified in the implementing regulation or was not (or not entirely) produced in full-color printing. The decisive factor is the typical function and design as an individualized photo book.
As of: May 2016
Does the guest list affect the deductibility of hospitality expenses?
Yes, the guest list is a key indicator. If only professional colleagues or office members are invited, and no private friends or family, this points to a business-related purpose. Any private co-motivation then becomes secondary.
As of: November 2016
Does the way the laboratory service is billed to the patient affect the tax exemption?
In the case decided, the laboratory billed the patient directly, which did not preclude the VAT exemption. What matters is that the service is therapeutically ordered and provided by suitably qualified personnel within the scope of a medical profession.
As of: September 2016
Does a banking power of attorney play a role in the gift tax assessment of an individual account?
No, powers of attorney for individual accounts are irrelevant for gift tax purposes. The mere authority over a spouse's account does not establish a beneficial co-entitlement to the assets.
As of: September 2016
Does a physical impairment of the employee play a role in assessing taxi costs?
A physical impairment is irrelevant when classifying a taxi as public transport under § 9 Abs. 2 S. 2 EStG. Even if the employee depends on a taxi for health reasons, the deduction is limited to the standard distance allowance (Entfernungspauschale). Any further deduction would only be possible under separate provisions, such as extraordinary expenses (außergewöhnliche Belastungen).
As of: December 2022
Does it matter to whom the family home is transferred within the ten-year period?
According to the FG Münster, no. A transfer to one's own children is also harmful and leads to the loss of the tax exemption. The court rejects any differentiation based on the recipient, since German inheritance tax law always taxes only the specific individual acquisition between the decedent and the acquirer, and an overall view of the transfer chain would contradict the statutory framework.
As of: November 2016
Does it matter that the employer operates two different businesses?
No. What matters is the natural person of the employer, not the individual business. If both jobs are performed for the same natural person – even if that person runs several businesses – the activities must be combined into a single employment relationship.
As of: February 2023
Does it matter that the waste removal was necessary for the sale of the house?
No. Even if the waste removal was, in practical terms, a prerequisite for any meaningful use or sale of the property, this does not affect its classification under inheritance tax law. What matters is that the heir was legally able to accept the inheritance without prior waste removal.
As of: May 2015
Does it matter whether clothing is actually worn for professional purposes only?
No. The deduction of conventional clothing as work-related expenses is already excluded if private use is possible and customary. This applies even if the clothing is in fact worn almost exclusively for work and was purchased specifically for that purpose.
As of: August 2015
Does it matter whether the resident has access to the kitchen?
No. In the decided case, the claimant had no access to the in-house kitchen in which the meals were prepared. The tax court nevertheless considered the service to be rendered "within the household" of the taxpayer and granted the tax reduction.
As of: September 2012