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 14 / 47
Does it matter whether the property is rented or owned?
No, for tax purposes it is irrelevant whether the accessibility modifications are carried out in an owner-occupied home or a rented property. The decisive factor is solely the medical or disability-related necessity of the measure.
As of: November 2019
Does it matter who pays the research funding?
No, for tax liability purposes it is irrelevant whether the research funding comes from the employer or from a third party. What matters is that the payment is connected to the recipient's employment relationship or professional activity. Prize money from third parties can therefore also constitute taxable employment income.
As of: August 2022
Does it matter for the tax exemption that the recipient of the service is a physician?
No. The Münster Fiscal Court clarifies that the person-related requirement of the tax exemption concerns the service provider, not the recipient. The provider must themselves be a member of a medical or paramedical profession and render a corresponding service.
As of: October 2016
Steigt die Entfernungspauschale (Pendlerpauschale)?
Für den Arbeitsweg ist eine höhere Entfernungspauschale vorgesehen — ab wann und in welcher Höhe, steht mit Fundstelle im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Under which case number is the BFH proceeding on the deduction of income-related expenses in connection with a voluntary disclosure pending?
The appeal against the ruling of the FG Köln dated 17 April 2013 (7 K 244/12) is pending before the Bundesfinanzhof under case number VIII R 34/13. The issue is whether Steuerberater (German Certified Tax Advisor) fees incurred for a voluntary disclosure relating to investment income may be deducted as income-related expenses alongside the saver's lump-sum allowance, despite the flat-rate withholding tax.
As of: March 2014
Under what conditions do business heirs remain largely exempt from inheritance tax?
Even after the reform, business heirs can remain largely tax-exempt if they continue operating the business over an extended period and preserve the jobs. With this, the legislator implements the requirements of the Federal Constitutional Court from December 2014, which permits such relief only if specific conditions are met.
As of: September 2016
Under what conditions is the benefit-in-kind valuation waived for employee housing?
In high-cost metropolitan areas, a valuation discount applies: the benefit-in-kind assessment for employer-provided housing is waived if the rent paid, including utilities, amounts to at least two-thirds of the local customary rental value and that local customary rental value does not exceed EUR 20 per square meter excluding utilities.
As of: August 2019
Under what conditions is income tax on PV profits waived?
Under the ruling of 02 June 2021, operators may be exempt from income tax if the system has a capacity of no more than 10 kW, was commissioned after 2003, is located on a single- or two-family home or on a property building owned by the operator, and any rental income from partial leasing does not exceed €520 per year.
As of: June 2021
Under what conditions is the time series comparison permissible according to the BFH?
According to the BFH ruling of 25 March 2015 (X R 20/13), the time series comparison is only permissible if the ratio between revenues and goods purchases within the business remains largely constant throughout the year. Where bookkeeping is formally proper, the method is inherently unsuitable for proving substantive defects. In cases of merely formal defects without concretely established substantive inaccuracies, other estimation methods take precedence.
As of: August 2015
Under what conditions is the employer's assumption of warning fines tax-free?
According to the ruling, the assumption is tax-free if the warning fine was imposed directly on the company as the vehicle owner and the company waives any recourse claims against the driver. If, however, the fine is imposed directly on the employee and reimbursed by the employer, this generally constitutes taxable wages.
As of: January 2017
Under what conditions can a deadline extension for the property tax return be granted?
A deadline extension can be requested from the competent tax authority at any time, but is only granted with a plausible justification. Recognized reasons include, for example, prolonged illness or, in individual cases, the time-consuming procurement of necessary documents and information. In Bavaria, the tax authorities also decide on extensions in justified individual cases.
As of: February 2023
Under what conditions is a rental compensation for the old apartment deductible?
Rental compensation can be claimed if, due to the notice period, rent must be paid simultaneously for both the old and new apartment, for a maximum of six months. Likewise deductible is double rent if you cannot move into the new apartment within three months. A precondition is always that the move is occupationally motivated.
As of: August 2021
Under what conditions can teaching services be VAT-exempt under § 4 Nr. 21 UStG?
Under § 4 Nr. 21 UStG, teaching services provided by private schools and other general or vocational training institutions are VAT-exempt if they directly serve educational purposes. A key requirement is a certificate from the competent state authority confirming that the institution properly prepares students for a profession or for an examination to be taken before a public-law body. Without this certificate, the exemption does not apply.
As of: August 2019
Under what conditions can contributory negligence be attributed to an injured party in the absence of a legal violation?
Contributory negligence can only be assumed if the injured party failed to exercise the care that a prudent and reasonable person would apply to avoid harm to themselves. The mere absence of a statutory duty is not sufficient to exclude contributory negligence; however, there must be a general public awareness of the protective measure in question.
As of: June 2014
Under what conditions are scholarships tax-exempt under § 3 No. 44 EStG?
Scholarships are tax-exempt under § 3 No. 44 EStG if they are funded from public sources, do not require a specific scientific, artistic, or employee-like service in return, and do not exceed the amount necessary to carry out the research task or cover the recipient's living expenses. All conditions must be met cumulatively.
As of: July 2022
Under what conditions are higher additional estimates beyond the guideline values permissible?
Higher additional estimates are only permissible in exceptional cases where plausible reasons exist. These reasons must either be evident from the circumstances or be specifically presented and substantiated by the tax office. Without a comprehensible justification, the upper limit of the guideline rate collection (Richtsatzsammlung) applies.
As of: May 2014
Are payments by tour operators to hoteliers subject to trade tax add-back?
No. In its ruling of 25 July 2019 (III R 22/16), the BFH decided that payments made by a tour operator for the use of hotel rooms are not subject to add-back under § 8 No. 1 lit. d and e GewStG. Under a hypothetical ownership assessment, the hotel rooms would not qualify as fixed assets of the tour operator.
As of: November 2019
Is the leasing of a shopping center subject to trade tax?
No. In its ruling of 14 July 2016 (IV R 34/13), the BFH held that the leasing of a shopping center is generally still classified as private asset management and is therefore not subject to trade tax. This also applies if the landlord provides additional infrastructure and advertising services.
As of: January 2017
Do allowances automatically double if a gift is made before inheritance?
No, the personal allowances for inheritance and gift tax do not automatically double through an advance gift. Using the allowances twice is only possible if more than 10 years lie between the gift and the subsequent inheritance. If the period is shorter, earlier gifts are aggregated with the inheritance.
As of: July 2008
Does a delayed inheritance tax assessment extend the relief period under § 35b EStG?
No. Even if the certificate of inheritance is issued only years after death and the inheritance tax is assessed accordingly late, the date of death remains decisive for the start of the five-year period. A late assessment does not postpone the beginning of the relief period.
As of: May 2024
Does the Bundeszentralamt für Steuern send notifications about tax refunds by email?
No, the BZSt does not send notifications about tax refunds by email. In addition, the BZSt is not responsible for refunding overpaid taxes; this falls under the jurisdiction of the relevant Finanzamt. Emails claiming to be refund notifications on behalf of the BZSt are therefore always fraudulent.
As of: May 2015
Does the Bundeszentralamt für Steuern send tax refunds by email?
No. The Bundeszentralamt für Steuern (BZSt, German Federal Central Tax Office) does not send requests to apply for tax refunds by email. Bank account details are likewise never requested through this channel. Such emails are phishing attempts.
As of: January 2017
Does the Bundesfinanzhof send requests to download files by email?
No. The BFH itself publicly warns against this fraud scheme and does not send emails asking recipients to download files. Such messages should always be classified as phishing or spam attempts.
As of: October 2016
Does the retroactive deduction ban for initial vocational training costs violate the German Basic Law?
According to the BFH, it does not. The court has expressly ruled that the retroactive application from 2004 onwards violates neither the prohibition of retroactivity nor the principle of equality under Article 3 of the German Basic Law (Grundgesetz).
As of: February 2014
Does the non-recognition of currency losses from third countries violate the free movement of capital?
No. Referring to the ECJ ruling X (C-686/13), the BFH held that there is no obligation under EU law to deduct currency losses from shareholdings in third countries such as the USA when determining domestic trade income. The free movement of capital is not infringed thereby.
As of: April 2016
From which sender address does the email regarding the NRW emergency aid feedback come?
The information on the feedback procedure will be sent at the end of November from the address noreply@soforthilfe-corona.nrw.de. Recipients should wait for this email before taking any action. Anyone who does not wish to settle accounts early does not need to do anything for now.
As of: November 2020
When do repair and modernization measures begin within the meaning of the EStG?
The decisive point is the start of the construction work, which is marked by the filing of the building application or — for projects exempt from a building permit — by the submission of the construction documents (§ 52 Abs. 16 Satz 8 EStG as amended by the StÄndG 2003). Expenses incurred before this cut-off date are generally not attributable to the modernization measures.
As of: April 2023
When does the relief period for the tax reduction under Section 35b EStG begin?
The relief period begins when the inheritance tax arises, which in the case of an acquisition upon death is generally the date of the decedent's death. The time of the actual assessment or payment of the inheritance tax is irrelevant in this respect. The BFH has expressly clarified this.
As of: May 2024
When does the municipality's general gritting duty begin in the morning?
According to settled case law, the general gritting duty regularly begins only at around 6:00 a.m. Before this time, the municipality is generally not obliged to remove ice on residential streets or to apply grit preventively.
As of: November 2012
When does a child studying abroad retain a domestic residence for child benefit purposes?
A child retains a domestic residence at the parents' home if rooms for living are permanently available there and the child visits the parental home with a certain regularity. The decisive provision is § 8 AO. Without these two conditions, the domestic residence — and thus generally the entitlement to child benefit — ceases to exist.
As of: October 2023
When does the obligation to contribute to the Künstlersozialkasse (German Artists' Social Insurance Fund) arise for non-typical exploiters?
An obligation to contribute arises when artistic or journalistic services are commissioned with a certain regularity and continuity, such that equal treatment with typical professional exploiters under § 24 Abs. 1 KSVG is justified. Merely exceeding the EUR 450 threshold is not sufficient.
As of: August 2022
When does an exceptional preventive duty to grit apply at night?
A preventive duty to grit at night applies only at particularly dangerous locations and only where significant nighttime traffic must actually be expected. The decisive factor is a concrete hazardous situation, not the mere occasional passage of a few individuals.
As of: November 2012
When does a compensation claim arise under § 29 UStG in the event of VAT rate changes?
A compensation claim exists if the service is rendered after 30 June 2020 and the underlying contract was concluded before 1 March 2020 (i.e., more than four months prior to the rate change taking effect). However, a fixed-price agreement or other contractual provision excludes the claim. Both contracting parties may demand compensation for the resulting VAT surcharge or relief.
As of: July 2020
When may the tax office add estimated revenues in the case of electronic cash registers?
Additional estimates are permissible if formal or material errors occur when using electronic cash registers. Typical examples include missing documentation on register settings (e.g. programming logs), non-sequential Z-numbers on daily totals receipts, or illegible receipts on thermal paper. Such deficiencies breach the record-keeping obligations and justify an estimate of the tax base.
As of: May 2014
When may the tax office apply the 30/70 method?
The method is typically used when deficiencies in the cash register records or bookkeeping have been identified. It may also be applied to the cash-basis income statement (Einnahmenüberschussrechnung) under § 4 Abs. 3 EStG (FG Nürnberg, judgment of 8 May 2012, 2 K 1122/2009). As a rule, it requires the tax office to have authority to make an estimated assessment.
As of: March 2016
When is the tax office allowed to estimate revenues?
According to the case law of the BFH (decision of 13 March 2013, Az. X B 16/12), the tax office is entitled to estimate business revenues if the cash reports have been repeatedly corrected or are internally inconsistent. An estimate also looms if no orderly records of cash receipts exist at all.
As of: August 2013
When may a seller cancel an ongoing eBay auction?
Under eBay's terms, a cancellation is permitted if there is a legitimate reason, for example an input error when entering the minimum price. In such cases, the listing may be withdrawn without the highest bidder being entitled to transfer of the goods.
As of: January 2014
When may a received advance payment be derecognized through profit or loss?
The advance payment recognized as a liability may only be derecognized once the agreed service has been rendered and the receivable from the customer has therefore been realized. The advance payment is then offset against the receivable to be recognized, and the prepaid expense previously recognized for VAT is reversed without effect on profit or loss.
As of: September 2019
When does tax class combination III/V lead to a back payment?
The III/V combination is designed for cases where the partner in tax class III earns about 60% and the partner in tax class V about 40% of the joint employment income. If the actual income ratio deviates significantly from this, the higher earner's wages are taxed too leniently during the year, which typically results in a back payment upon filing the income tax return. For this reason, couples using III/V are required to file an annual income tax return.
As of: May 2022
When does a shareholder loan risk being treated as a hidden profit distribution?
A hidden profit distribution (verdeckte Gewinnausschüttung) is likely if the loan is not concluded on arm's length terms. The tax office reviews in particular the interest rate and the repayment arrangement. If the conditions are too favorable or unusual, the tax authorities add the interest paid back to profits and reclaim taxes as in the case of a profit distribution. In addition, the contract must be performed exactly as agreed.
As of: December 2020
When does the discounting requirement for non-interest-bearing liabilities cease to apply under the 4th Corona Tax Assistance Act?
The 5.5% discounting requirement for non-interest-bearing liabilities with a remaining term of more than 12 months under § 6 Abs. 1 Nr. 3 EStG no longer applies for fiscal years ending after 31 December 2022. The same applies to provisions under § 6 Abs. 1 Nr. 3a lit. e sentence 1 EStG. At the taxpayer's request, the new rule may also be applied to earlier years.
As of: June 2022
When does the entitlement to Kindergeld for vocational training cease in cases of prolonged illness?
According to BFH case law, the entitlement under § 32 Abs. 4 S. 1 Nr. 2 a EStG ceases as soon as a medical prognosis indicates that the illness is highly likely to last longer than six months. The child is then deemed to be suffering from a long-term illness and can no longer be considered as being in vocational training.
As of: May 2022
When is the late-filing penalty waived despite late submission?
A late-filing penalty is not imposed if the tax return results in a refund or if no tax is due. In these cases, late submission carries no sanction.
As of: May 2016
When will the Federal Constitutional Court rule on the constitutionality of the property tax?
The Federal Constitutional Court held the oral hearing on the constitutionality of the property tax on 16 January 2018. The judgment is scheduled to be announced on 10 April 2018.
As of: March 2018
When does VAT arise on advance payments received?
Under accrual-based VAT taxation (Besteuerung nach vereinbarten Entgelten), VAT generally arises at the end of the pre-registration period in which the supply was rendered. However, if an advance payment is received before the supply is performed, VAT arises at the end of the pre-registration period in which the payment was received (minimum cash-basis taxation under § 13 Abs. 1 Nr. 1 lit. a sentence 4 UStG).
As of: September 2019
When does the regular query for church tax withholding features take place at the BZSt?
The regular query is conducted once a year between September 1 and October 31. The cut-off date for church tax liability is August 31 of the respective year. The BZSt informs the withholding entity of the religious affiliation and the applicable church tax rate; if there is no affiliation or if a blocking notice has been set, a zero value is transmitted.
As of: August 2014
When is the relief amount for single parents reduced on a pro rata temporis basis?
The relief amount is reduced for each full calendar month in which the requirements of § 24b EStG are not met. Relevant points in time include the month of the child's birth, the month of separation or marriage, and the month of a spouse's death. Example: If the first child is born in April 2022, the relief amount is only 9/12 of EUR 4,260, i.e. EUR 3,195.
As of: February 2023
When do employees receive the increased benefit rate of 67 percent?
The increased rate is granted if at least one child eligible under § 32 Abs. 1, 3 to 5 EStG lives in the household and a child allowance is registered on the income tax card. Child allowances are only entered for tax classes I, II, III, and IV. For adult children, the allowance can be applied for at the tax office under certain conditions (e.g., vocational training).
As of: March 2020
Wann erkennt das Finanzamt Verluste aus einer Ferienwohnung an?
Bei der Vermietung von Ferienwohnungen kommt es auf die Einkünfteerzielungsabsicht an — worauf zu achten ist, lesen Sie im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
When does the tax office recognize income-related expenses for long-term vacant rental property?
Income-related expenses for vacant rental properties are only deductible if the owner can prove an intention to generate income. This requires serious and sustained letting efforts. If such intention is missing or the efforts are not adjusted over the years, the tax office will deny the loss deduction.
As of: February 2013