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 33 / 47
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 operational reasons can validly justify rejecting a part-time request?
Under § 8 Abs. 4 TzBfG, the reasons must substantially impair the organization, workflow, or safety of the business, or cause disproportionate costs. General references to shift operations or vague organizational difficulties are not sufficient. The employer bears the burden of presentation and proof regarding the significance of these reasons.
As of: August 2013
Welche degressive Abschreibung gilt für Investitionen ab 2025?
Für neu angeschaffte bewegliche Wirtschaftsgüter ist befristet wieder eine degressive Abschreibung möglich; Sätze, Zeitraum und Fundstelle stehen im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
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 energy-related measures are eligible for tax relief under § 35c EStG?
Eligible measures include the thermal insulation of walls, roofs and upper-floor ceilings, the renewal of windows and exterior doors, the installation or renewal of ventilation and heating systems, and the installation of digital systems for optimising energy use and consumption. The optimisation of existing heating systems that are at least two years old is also eligible. Both labour and material costs qualify as deductible expenses.
As of: September 2020
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 professional challenges did the coronavirus pandemic bring for tax firms?
Firms had to familiarize themselves with new regulations, resolutions, and information almost daily, without being able to draw on prior experience. Topics such as short-time work, VAT changes, and applications for bridging aid affected nearly all clients. Much of it had to be handled on a 'learning by doing' basis.
As of: December 2020
What is the financial significance of the property tax for municipalities?
The Grundsteuer (German real property tax) is a key source of revenue for municipalities, accounting for roughly 10 percent of their tax income. According to the Federal Statistical Office, revenues from Grundsteuer A amounted to approximately 400 million euros in 2016.
As of: April 2018
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
What financial impact has the voluntary disclosure had on the German federal states?
Voluntary disclosures have generated substantial additional tax revenue for the federal states. Schleswig-Holstein, for example, has collected more than 160 million euros in extra revenue since 2010, which has been used for public investments such as the renovation of universities and the expansion of childcare facilities.
As of: February 2014
What financial consequences could a favorable decision by the Bundesverfassungsgericht have?
If the Bundesverfassungsgericht rules that the child allowance (Kinderfreibetrag) was set too low, many parents will have paid excessive income tax in the affected years. In that case, they can expect an automatic tax refund without having to take any action themselves.
As of: December 2016
What formal requirements apply to the tax reduction for household-related services?
Two requirements must be met: a proper invoice from the service provider must be available, and payment must be made cashlessly to the provider's account, e.g. by bank transfer. These requirements apply equally to household-related services and tradesperson services.
As of: December 2024
What formal requirements must be met to deduct pet-care costs for tax purposes?
A proper invoice from the service provider is required, along with payment by bank transfer to the provider's account; cash payments are not accepted. In addition, the service must be performed within the taxpayer's household. In the case decided, the plaintiffs had transferred €302.90 and submitted a corresponding invoice.
As of: April 2015
Which statutory provision governs the deduction of childcare costs from 2012 onwards?
From the 2012 assessment period onwards, § 10 Abs. 1 Nr. 5 EStG applies; previously, § 9c Abs. 3 Satz 3 EStG was the relevant provision. Both provisions require, as a condition for the deduction, that an invoice exists and that payment is made by non-cash transfer to the service provider's account.
As of: June 2015
Which statutory provision governs the treatment of educational institutions as a primary place of work?
The relevant provision is § 9 Abs. 4 Satz 8 EStG in the version of the reformed travel expense law applicable since the 2014 assessment period. Under this rule, an educational institution attended outside an employment relationship for the purpose of full-time studies or a full-time educational measure is deemed to be the primary place of work.
As of: October 2020
What statutory rule currently governs the tax exemption of restructuring gains?
The Act against Harmful Tax Practices in Connection with the Licensing of Rights of 27 June 2017 introduced application-based tax exemptions for restructuring gains. The relevant provisions are § 3a EStG for income and corporate income tax, and § 7b GewStG for trade tax. The exemption requires a corresponding application by the taxpayer.
As of: October 2017
What legal requirements apply to order buttons in online commerce?
Under the so-called Button-Lösung (button solution), purchase buttons in online commerce must be labeled clearly and legibly with terms such as 'order subject to payment' so that the consumer recognizes the payment obligation. In addition, the customer must be clearly informed about the price and the essential characteristics of the product before placing the order. These requirements protect against hidden or non-transparent orders.
As of: September 2016
Welche haushaltsnahen Dienstleistungen sind steuerlich begünstigt?
Für haushaltsnahe Dienstleistungen und Handwerkerleistungen gibt es eine Steuerermäßigung. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Haushaltsnahe Dienstleistungen". (Quelle: Deubner Verlag)
What content requirements must a proper logbook fulfill?
A logbook must be kept completely, continuously, and as a self-contained record so that the taxable private-use portion can be reliably determined. All business and private trips must be documented promptly and in a tamper-proof manner, including the date, odometer reading, destination, purpose, and business partners visited.
As of: July 2014
Which internal processes are required to complete the Focus-Money questionnaire?
Completing the questionnaire requires cross-departmental collaboration within the firm, as it covers both technical and organizational matters. Numerous staff members are involved to ensure that all questions are answered fully and accurately. At the same time, the process serves as an internal review of our professional standards.
As of: June 2020
Which specific clause did the SG Reutlingen recognize as sufficient for freedom from directives?
The Sozialgericht Reutlingen (judgment of 28 June 2016, Az. S 8 R 1775/14) deemed sufficient an agreement under which amendments to the managing director's service contract as well as the removal of the managing director additionally require the consent of the affected shareholder-managing director. This additional provision, alongside the simple majority for other resolutions, was enough to rule out dependent employment.
As of: January 2017
Which specific services outside the property qualify as household-related tax benefits?
Eligible services include, in particular, snow removal as well as the cleaning of the street and sidewalk in front of the property. Work on water connections located outside the property boundary may also be recognized as household-related services or tradesperson services. The decisive factor is that the service benefits the household.
As of: November 2014
Which specific measures improve a company's rating score?
Effective measures include strengthening the equity ratio, reducing inventories and receivables, optimizing the financial structure (working capital, asset coverage), aligning loan maturities with debt service capacity, increasing profitability and cash flow, and minimizing fixed assets. In addition, communication with lenders and investors should be managed proactively.
As of: August 2019
Which specific measures improve a company's rating score?
Particularly effective measures include improving the equity ratio, reducing inventories and receivables, and optimizing the financial structure (working capital, asset coverage). Further actions include adjusting loan maturities, increasing profitability, reducing debt and fixed assets, boosting cash flow, and optimizing communication with capital providers.
As of: December 2020
Which specific renovation measures are recognized for tax purposes?
Recognized measures include wheelchair ramps, barrier-free home entrances, stair lifts, accessible bathrooms and kitchens, walk-in bathtubs with doors, threshold-free terrace doors, doors widened for wheelchair access, lower window handles and light switches, as well as handrails and grab bars in rooms. The conversion of a ground-floor room into a bedroom also qualifies.
As of: November 2019
What are the wage tax consequences of a company event exceeding 110 euros per participant?
If the 110-euro threshold is exceeded, the benefit remains subject to wage tax. The employer may apply a flat-rate taxation of 25 percent. If the employer waives the flat-rate option, each employee must individually pay wage tax on the monetary benefit.
As of: October 2012
Which new depreciation and investment rules apply for 2020 and 2021?
Movable fixed assets may be depreciated on a declining-balance basis in 2020 and 2021 — with a factor of 2.5 compared to the current straight-line depreciation and a maximum of 25% p.a. In addition, the funding rate of the tax-based research allowance is granted retroactively as of 01/01/2020 and, limited until 12/31/2025, on an assessment base of up to EUR 4 million per company.
As of: June 2020
Which new EEG feed-in tariffs apply to PV systems with self-consumption?
For PV systems with self-consumption commissioned on or after 30 July 2022, new tariff rates apply: 8.2 cents/kWh for systems up to 10 kWp and 7.1 cents/kWh for the capacity portion above this threshold. For a 13 kWp system, this results in a blended rate of approximately 7.9 cents/kWh. However, application of these rates remains subject to EU approval.
As of: September 2022
Which new factors are considered in the asset value method (Sachwertverfahren)?
The asset value method now incorporates a regional factor, set locally by the appraisal committee (Gutachterausschuss), as well as an age reduction factor. In addition, the value figures under Annex 25 BewG have been raised to current market levels. Both adjustments typically lead to higher property valuations.
As of: November 2022
Which new disqualifying grounds for a voluntary self-disclosure with exemption from prosecution are envisaged?
The disqualifying grounds are to be expanded, in particular by including the VAT inspection (Umsatzsteuer-Nachschau). This means an effective self-disclosure is no longer possible once an auditor has appeared for a VAT inspection. Overall, the requirements for a voluntary self-disclosure with exemption from prosecution are being significantly tightened.
As of: November 2014
What new value thresholds apply from 2018 for low-value assets (GwG)?
Effective 01/01/2018, independently usable assets with a net value of up to 800 euros qualify as low-value assets (previously 410 euros) and can be fully depreciated immediately. In addition, the documentation requirement has been eased: assets up to 250 euros net no longer need to be recorded in a separate register.
As of: November 2017
What is the practical significance of the BFH ruling IV R 34/13 for landlords?
Landlords of large commercial properties such as shopping centres can generally remain exempt from trade tax even when providing extensive ancillary services. The decision creates legal certainty in distinguishing between private asset management and commercial activity and is particularly relevant for real estate companies.
As of: January 2017
What is the practical significance of the BFH ruling for tour operators?
Tour operators do not have to include payments made to hoteliers for the provision of hotel rooms in the trade tax add-back. This results in a lower trade tax burden. The ruling provides legal certainty regarding typical travel-related advance services such as overnight stays.
As of: November 2019
What is the practical significance of the BFH ruling for company sales?
The ruling considerably facilitates the transfer of pension commitments in share deals. Purchasers who do not wish to assume an existing pension commitment can transfer it to another company (e.g., a newly established GmbH of the seller) against a settlement amount without triggering wage tax for the beneficiary employee.
As of: November 2016
What practical significance does the FG Köln ruling have for taxpayers with a home office?
The ruling is favorable for owners with a home office, as the capital gain from selling an owner-occupied property can remain fully tax-free even if business expenses were previously deducted for the home office. Affected taxpayers should challenge contrary tax assessments by referring to this ruling. Since an appeal against the decision is possible, it is advisable to monitor further legal developments at the BFH.
As of: June 2018
What is the practical significance of the ruling for employers?
Employers must expect that heirs of deceased employees may claim financial compensation for unused vacation. Vacation entitlements accumulated during long periods of illness in particular can trigger substantial payment obligations, as illustrated by the case at hand involving 146 vacation days and a claimed amount of 14,600 euros.
As of: July 2014
What practical significance does the ruling have for hospitals with attending physicians and group practices?
Operators of clinics or practices that lease their rooms and equipment for a fee to attending physicians or group practices must generally pay VAT on these fees. We recommend reviewing existing contracts and invoices for VAT implications.
As of: October 2016
What is the practical relevance of this decision for real estate structures?
In the case of large real estate portfolios, there is often an interest in transferring individual properties into asset-managing subsidiaries (e.g. GbR). The decision of the Grand Senate clarifies whether such structures jeopardize the extended trade tax deduction for real estate (erweiterte Grundstückskürzung) at the parent entity level. A negative ruling would result in full trade tax liability on the real estate income of the holding structure.
As of: November 2016
What is the practical implication of the BFH ruling II R 32/20 for purchasers of real estate?
Purchasers who acquire an undeveloped plot from a municipality obligated to provide infrastructure development and who commit to paying future development charges do not have to pay real estate transfer tax on the development portion. A single combined purchase price stated in the contract does not change this. The taxable base is accordingly reduced to the value of the undeveloped plot.
As of: December 2022
What is the practical consequence of the ruling for German KGs with U.S. investments?
German limited partnerships (KG) cannot claim losses – including currency losses – from investments in U.S. partnerships as a reduction of trade tax. Such losses are disregarded for domestic trade tax purposes, even if they economically affect the German entity.
As of: April 2016
What are the practical consequences of the ruling for landlords?
Landlords can no longer deduct the costs of a complete renewal of a fitted kitchen in the year of payment, but only spread over ten years. This significantly worsens the liquidity impact of the modernization and should be taken into account when planning renovation measures.
As of: December 2016
What practical problems arise from the 27 different national implementations?
The Directive only sets a minimum standard, allowing each Member State to impose further-reaching disclosure obligations. For cross-border arrangements, intermediaries and taxpayers may therefore need to observe up to 27 different national rules with vague legal terms in parallel. This causes significant legal uncertainty, high coordination and resource costs, and the risk of diverging sanction regimes.
As of: July 2019
What is the legal significance of Article 72(2) of the Basic Law (Grundgesetz) in connection with the childcare allowance (Betreuungsgeld)?
Article 72(2) of the Basic Law limits the federal government's concurrent legislative competence: a nationwide regulation is only permissible if it is necessary to establish equivalent living conditions or to preserve legal or economic unity. The Federal Constitutional Court (Bundesverfassungsgericht) found that these requirements were not met in the case of the Betreuungsgeld.
As of: August 2015
What is the legal basis for mediation in Germany?
The legal basis for mediation in Germany is the Mediationsgesetz (Mediation Act), which came into force in 2012. It governs, among other things, the duties and obligations of the mediator as well as the confidentiality of the proceedings. This established mediation as a recognized, independent method of conflict resolution under German law.
As of: January 2013
What legal steps is the Verbraucherzentrale NRW planning against Amazon?
The Verbraucherzentrale NRW (North Rhine-Westphalia Consumer Advice Centre) has announced that it will seek a court ruling on whether the Dash Button, in its current form, complies with German consumer protection law. If Amazon does not amend its terms, particularly regarding price transparency and button labelling, a lawsuit will be filed. The aim is to obtain a fundamental decision on the admissibility of this ordering process.
As of: September 2016
What is the tax impact of the new BFH case law for taxpayers?
The new calculation method regularly results in a lower deductible income-related expense amount than the previous fair-value method, since the notional book value is typically below the actual market value. For a purchase price of EUR 24,000 and four years of use, the difference can amount to several thousand euros. At a tax rate of 30%, this translates into a noticeably higher tax burden compared with the previous legal framework.
As of: August 2013
What is the tax significance of distinguishing between initial and secondary vocational training?
Expenses for an initial vocational training (Erstausbildung) are only deductible as special expenses (Sonderausgaben) up to EUR 6,000 per year and only have a tax effect in the year in which income is earned. Costs for a secondary vocational training (Zweitausbildung), by contrast, qualify as income-related expenses (Werbungskosten) or business expenses (Betriebsausgaben) and are fully deductible. They can also be carried forward as a loss to later years in which income is earned for the first time.
As of: October 2014
What tax treatment applies when retrofitting a battery storage system?
Depreciation and an input VAT deduction for the battery storage system are only possible if more than 10% of the generated solar power is used for business purposes. Up to 90% of the electricity may be consumed privately without forfeiting the input VAT deduction.
As of: June 2021
What are the tax consequences if heirs declare the cessation of a leased agricultural and forestry business?
If the heirs declare the cessation of business retroactively to the date of death pursuant to § 16 Abs. 3b S. 3 EStG, a taxable cessation gain arises under § 16 Abs. 3 EStG in conjunction with § 14 S. 2 EStG. The resulting income tax, solidarity surcharge, and church tax are borne by the heirs but do not reduce the enrichment subject to inheritance tax.
As of: October 2023
What are the tax consequences if an employee uses the company car privately despite a prohibition?
According to the BFH, private use in breach of an explicit prohibition does not constitute wages. The benefit is therefore not classified as employment income and is not subject to wage tax. The prerequisite, however, is that the prohibition on private use was issued in earnest.
As of: March 2014