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 32 / 47
What are the requirements for a tax-recognized home office?
The room must be furnished as an office and used exclusively or almost exclusively (at least 90%) for professional or business purposes. In addition, no other workplace may be available to the taxpayer for that activity, as is typically the case for teachers.
As of: August 2016
What requirements apply under the BAFA consulting subsidy supplementary admission procedure?
Under the supplementary admission procedure (Nachrückverfahren), an eligible proof of use must be submitted. In addition, it is explicitly required that BAFA has sufficient budgetary funds available to grant the approval.
As of: June 2020
What requirements must an employer observe when terminating the employment of a severely disabled employee?
Before issuing the termination, the employer must obtain the consent of the Integrationsamt (Integration Office). This applies regardless of the reason for termination, including dismissals for operational reasons. A termination issued without such consent is invalid.
As of: June 2009
What requirements must a building meet to qualify for the tax reduction under § 35c EStG?
At the start of the energy-related measure, the building must be more than 10 years old and used by the taxpayer for their own residential purposes or provided rent-free for residential use. If taxable income is generated from the property (e.g. rental, including short-term via AirBnB), the tax relief is excluded. The measure must be carried out between 01/01/2020 and before 01/01/2030.
As of: September 2020
What requirements must a proper logbook meet?
For a logbook to be recognised for tax purposes, all vehicle costs must be documented individually and supported by receipts. Mere estimates of individual cost items – for example fuel consumption – are not permitted and will lead to rejection of the logbook method.
As of: December 2023
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 requirements must non-motorized transport meet to qualify for the reduced VAT rate?
The alternative non-motorized form of transport must be equivalent to tax-privileged taxi services under the German Passenger Transport Act (Personenbeförderungsgesetz). This includes, for example, fixed and publicly known tariffs and a clear distinction from non-privileged rental car services. Pure sightseeing or excursion trips do not qualify.
As of: January 2020
What conditions must each taxpayer meet to claim the deduction?
Each user must have their own workspace within the home office, to the extent actually required for their professional or business activity. In addition, it must be established that a professional or business activity is in fact carried out there, and the scope of this activity must make maintaining a home office plausible.
As of: March 2017
What requirements must business heirs meet for full tax exemption after the 2016 reform?
Even under the new rules, business heirs can in principle be fully exempted from inheritance tax (100%). The prerequisites are that the business is continued on a lasting basis and that the jobs are preserved.
As of: September 2016
What requirements must laboratory services meet to qualify for the VAT exemption under § 4 No. 14 a UStG?
The laboratory services must be performed in the course of practicing a medical or paramedical profession. The individuals providing the services must hold the relevant professional qualifications, and the services must be ordered by a therapist. In addition, these orders must be sufficiently documented.
As of: September 2016
What requirements must electronic invoices meet for input VAT deduction?
The authenticity of origin (identity of the invoice issuer), the integrity of the content (unaltered mandatory information), and the legibility of the invoice must be ensured. In addition, the tax authorities require an internal control procedure. These requirements apply equally to paper and electronic invoices.
As of: November 2012
What conditions must be met for the formal defect to remain without consequences?
The payment flow of EC card transactions must be sufficiently documented, and the actual cash balance must be verifiable at any time. Only under these conditions is the formal defect disregarded in the event of a potential rejection of the accounting records.
As of: July 2018
What requirements must be met for medication costs to be deductible as extraordinary expenses?
The medication must be taken for medical reasons and substantiated by a doctor's prescription. Only then can the costs be recognized as medical expenses under § 33 Abs. 1 EStG.
As of: August 2015
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 for the statutory vacation entitlement?
The employee only needs a legally existing employment relationship and must have fulfilled the six-month qualifying period once. Actual work performance in the respective calendar year is not required, so the entitlement also arises during a suspended employment relationship.
As of: August 2014
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 conditions must be met to qualify for the Corona emergency aid?
A significant financial bottleneck caused by the Corona crisis must exist. This is assumed if more than half of the orders have been lost since March 1, revenues have been more than halved compared to the same month of the previous year, official restrictions massively limit the ability to generate revenue, or the funds available are insufficient to cover short-term liabilities. The bottleneck must not have existed prior to March 1, 2020.
As of: March 2020
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 must continue to be met for the inheritance tax exemption of the family home under § 13 Abs. 1 Nr. 4b ErbStG?
The acquiring spouse must use the family home for their own residential purposes without undue delay after the inheritance and maintain this self-use as owner for at least ten years. A transfer of ownership within this ten-year period triggers retroactive taxation, even if actual use is continued.
As of: November 2016
What requirements must be met for the Corona bonus to be tax-free?
The payment must be made between 01/03/2020 and 31/12/2020 and must be granted in addition to wages already owed, meaning it cannot result from a salary conversion. It must also be paid to mitigate the additional burdens caused by the Corona crisis. A written agreement is strongly recommended.
As of: September 2020
What conditions must be met for an add-back of rental and lease payments under § 8 No. 1 GewStG?
A rental or lease agreement must exist, and the rented or leased assets must be attributable to the taxpayer's fixed assets on a hypothetical basis, i.e. if they were owned by the taxpayer. If this hypothetical classification as fixed assets does not apply, the add-back is not made.
As of: November 2019
What are the requirements for a property tax abatement due to vacancy?
There must be a substantial reduction in income that the owner is not responsible for. The landlord must demonstrate that they made serious and sustained efforts to find new tenants, for example through advertisements or by engaging a real estate agent. Corresponding evidence should be retained, as the tax office frequently requests proof.
As of: March 2014
What requirements must be met for a part-time entitlement under § 8 TzBfG?
The employer must generally employ more than 15 employees, and the employment relationship must have existed for longer than six months. The part-time entitlement applies if no operational reasons stand against it (§ 8 Abs. 4 Satz 1 TzBfG). Such reasons must be substantial and go beyond the usual organizational effort.
As of: August 2013
What requirements must low-value assets (geringwertige Wirtschaftsgüter, GWG) meet?
They must be movable, independently usable and depreciable fixed assets. Only then can the acquisition or production costs be deducted immediately up to the GWG threshold.
As of: December 2023
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
Which events will no longer qualify as a tax-relevant disposal from 2020 onwards?
Under Sec. 20 Abs. 2 S. 3 EStG (draft), the following will no longer qualify as a disposal from 2020 onwards: the full or partial uncollectibility of a capital claim, the write-off of worthless assets by the paying agent, the transfer of worthless assets to third parties, and comparable losses. As a result, losses from these events can no longer be offset against investment income.
As of: October 2019
What proposals does the Bundesrechnungshof make to offset the revenue shortfalls?
The BWV proposes a critical review of federal payments for tasks of the Länder and municipalities, as well as of the wide range of tax concessions. In addition, the income tax schedule could be restructured to avoid revenue losses. These measures would offset the shortfalls compared to current fiscal planning.
As of: June 2019
Which provisions were declared null and void by the BVerfG ruling?
Sections 4a to 4d of the Federal Parental Allowance and Parental Leave Act (Bundeselterngeld- und Elternzeitgesetz, BEEG) were declared null and void. These provisions established the entitlement to the childcare allowance (Betreuungsgeld).
As of: August 2015
What precautions should buyers take before signing a contract?
Before finalizing purchase and construction contracts, the draft should be discussed with a Rechtsanwalt (German Attorney-at-Law) or notary and submitted to the Steuerberater (German Certified Tax Advisor). This allows real estate transfer tax risks arising from a unified contractual arrangement to be identified early and, where possible, avoided through appropriate contract drafting.
As of: January 2018
What advantages does mediation offer compared to court proceedings?
Mediation is generally faster, more cost-efficient and more confidential than court proceedings. It allows for tailored solutions that go beyond purely legal positions and often preserves the business relationship between the parties. In addition, the participants retain control over the outcome instead of leaving it to a judge.
As of: January 2013
What advantages does the EU Unitary Patent offer for inventors and companies?
With a single application to the European Patent Office, inventors obtain EU-wide protection for their invention. This significantly reduces administrative effort and substantially lowers application costs. Small and medium-sized enterprises in particular benefit from the simplified and more cost-effective patent process.
As of: August 2013
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
What are the benefits of mandatory pension insurance for mini-jobbers?
By paying contributions, the mini-job is recognized as a full insurance period in the statutory pension scheme. Mini-jobbers thereby earn their own pension entitlements and can additionally apply for a state-subsidized Riester pension. Without personal contributions, these entitlements would not arise.
As of: September 2012
What are the benefits of submitting donation receipts digitally?
Electronic submission is a fast and efficient means of communication. Both donors and charitable organisations can organise the process for donation receipts digitally on their own, reducing administrative work and costs.
As of: February 2017
What are the benefits of digitalised bookkeeping for clients?
Digital bookkeeping enables more efficient processes, faster analyses and closer guidance by the Steuerberater (German Certified Tax Advisor). Integrating ERP systems, dunning and other interfaces significantly simplifies the preparation and execution of financial and payroll accounting.
As of: July 2019
What advantages does a digitalised firm offer during lockdown?
A largely digitalised firm can switch to home office at short notice, since documents are available electronically and staff can work independent of location. Paper files do not need to be transported, which creates flexibility. In addition, more capacity remains to focus on new technical challenges such as short-time work or bridging aid.
As of: December 2020
What are the benefits of a company bike for employers and employees?
Employers can offer their staff an attractive, health-promoting benefit without incurring any costs of their own under the leasing model. Employees receive a bike on significantly more favorable terms, as only the non-cash benefit of 1% of the list price is taxed monthly – regardless of whether the bike is used for business or private purposes.
As of: November 2012
Which income-related expenses are particularly relevant for professional footballers?
For professional footballers, the key items to review are double household management, additional meal allowances, travel costs, training expenses, language courses and application costs. These expenses often arise in substantial amounts and should be individually determined and claimed in the income tax return.
As of: July 2014
Which income-related expenses are still deductible for investment income since 2009?
Since the introduction of the flat-rate withholding tax (Abgeltungsteuer) in 2009, only the saver's lump-sum allowance of €801 per person per year (€1,602 for joint assessment) is generally deductible for income from capital assets. Actual higher income-related expenses no longer have any tax effect. Whether tax advisory fees incurred in connection with a voluntary self-disclosure may be deducted additionally is the subject of BFH proceedings VIII R 34/13.
As of: March 2014
Which income-related expenses were in dispute in the case before the FG Baden-Württemberg?
An elderly lady was no longer able to manage her assets herself for health reasons and engaged a trustee. The resulting management costs significantly exceeded the saver's lump-sum allowance. The tax office denied the deduction, whereas the FG recognised the costs as deductible.
As of: February 2013
What value thresholds apply from 2018 onward for the collective item (pool) rule?
The collective item rule applies only to business owners. From 2018, assets with acquisition or production costs between EUR 250 and EUR 1,000 net can be entered into a collective item and depreciated on a flat-rate basis over five years. The lower threshold was thus raised from EUR 150 to EUR 250 net.
As of: August 2017
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
Which payment method must be observed for childcare costs?
The expenses must be paid by bank transfer or direct debit. Cash payments are not recognized by the tax office, meaning the special expense deduction is forfeited in such cases.
As of: August 2013
Which target group is the Second Occupational Pension Strengthening Act primarily intended to reach?
The act is aimed in particular at low-income earners and employees of small and medium-sized enterprises. Higher subsidy amounts and increased income thresholds are designed to expand occupational pension coverage within these groups. More flexible payout rules are also intended to enhance the appeal of occupational pension schemes (bAV).
As of: December 2024
Which additional services do not turn the rental of a shopping center into a commercial enterprise?
Customary services such as cleaning, security, maintenance, and the provision of sanitary and staff facilities form part of the necessary infrastructure of a shopping center and do not constitute a commercial enterprise. Even if the landlord has these services performed by third parties, the activity remains within private asset management.
As of: January 2017
Which bonuses may not be credited toward the minimum wage?
Items that may not be credited include, in particular, allowances for quantitative or qualitative additional work, premiums for work at specific times of day or on Sundays and public holidays, rotating shift allowances, overtime premiums, and premiums for work performed under especially arduous, demanding, or hazardous conditions.
As of: June 2015
Which structural measures qualify as a disability-accessible shower conversion?
Typical measures include a level-access shower entry, wheelchair accessibility, and the adaptation of fittings and doors. In the case decided, conversion costs of around 5,736 euros were fully recognized as außergewöhnliche Belastung (extraordinary expenses) for a person suffering from multiple sclerosis.
As of: May 2015
Which special annual income threshold applies in 2014 to existing PKV policyholders from 2002?
For employees who were exempt from statutory health insurance and privately insured on 31 December 2002 because their income exceeded the annual income threshold then in force, a special threshold of EUR 48,600 applies from 2014 (2013: EUR 47,250). This threshold is decisive for determining compulsory insurance status.
As of: December 2013