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 37 / 47
Who grants the 'Excellent Employer' award for Steuerberater (German Certified Tax Advisor) firms?
The award is jointly conferred by ten German Steuerberater associations. Technical support for the evaluation is provided by PAON GmbH, a consulting firm specialised in human resources management.
As of: January 2022
Who is eligible for funding under the NRW special programme for digitalisation in retail?
Brick-and-mortar retail businesses in North Rhine-Westphalia are eligible. The aim of the NRW state government's project call is to strengthen economic resilience in the retail sector and to support stationary retail through innovative and digital measures.
As of: July 2020
Are employers reimbursed for social security contributions during short-time work?
Yes, as part of the Corona relief packages, the employer's share of social security contributions for work hours lost due to short-time work is reimbursed. This provides additional relief to employers beyond the wage replacement benefits granted to employees.
As of: May 2021
Are investments in hygiene measures and digitalization subsidized?
Yes. Structural measures and renovations to comply with hygiene requirements are subsidized with up to 20,000 euros per month. Digitalization investments, such as setting up an online shop or costs for online sales platforms, are funded on a one-time basis with up to 20,000 euros and can be claimed retroactively from March 2020.
As of: March 2021
Are enforcement measures and late payment surcharges suspended during the coronavirus crisis?
Yes, the tax authorities are currently refraining from enforcement measures. In addition, late payment surcharges are being waived to provide relief for affected businesses and taxpayers.
As of: March 2020
Are allowances and bonuses credited against the statutory minimum wage?
This requires a differentiated view. According to the case law of the European Court of Justice and the BAG on posted workers, employer payments are only credited against the minimum wage if, by their intended purpose, they serve as consideration for the regular work performance owed. Payments serving a different purpose are not taken into account.
As of: June 2015
Are final tax assessments amended in the case of retroactive contribution refunds?
No. Since the revision of § 10 Abs. 4b EStG effective 01.01.2012, the assessments of the original payment years are no longer retroactively corrected. Instead, refunds are offset in the year of inflow or, where they exceed contributions, added as a refund surplus to the total amount of income. This avoids administrative effort.
As of: August 2023
Are electronically transmitted bank statements recognised by the tax office as accounting vouchers?
Yes, electronic bank statements are generally recognised as accounting vouchers. However, certain requirements must be met, particularly regarding retention, immutability, and traceability of the data. The relevant BMF circular is decisive in this respect.
As of: September 2014
Are household-related services performed outside the property recognised for tax purposes?
Yes. According to the BFH rulings of 20.03.2014 (VI R 55/12 and VI R 56/12), household-related services are also eligible for tax relief when performed beyond the property boundaries. The prerequisite is a spatial and functional connection to the household. The previously restrictive view of the tax authorities has thereby been rejected.
As of: November 2014
Are children born after the application considered for the Baukindergeld (German child construction subsidy)?
No, the Baukindergeld is not paid for children born after the application has been submitted. The decisive factor is the eligibility for Kindergeld (German child benefit) at the time the application is filed.
As of: December 2018
How does the OLG Schleswig-Holstein justify the indirect helmet obligation?
According to the OLG, it can be assumed today that a reasonable person wears a helmet when cycling in public road traffic to avoid personal injury. The particular risk of injury in road traffic justifies this expectation, even without an explicit statutory rule.
As of: September 2013
How does the BFH justify the constitutionality of the deduction prohibition?
The BFH refers to the reduction of the corporate income tax rate from 25% to 15% as part of the 2008 Corporate Tax Reform Act (Unternehmenssteuerreformgesetz). In the court's view, this rate cut provides sufficient relief for corporations and offsets the deduction prohibition.
As of: May 2014
How does the BFH justify treating furnishings and accommodation separately?
The BFH distinguishes between the use of the accommodation itself and the use of furnishings. Expenses for household items and furniture serve to acquire independent economic assets or – via depreciation (AfA) – to allocate these acquisition costs over time. The fact that these items are used in the secondary residence does not change their independent tax classification.
As of: June 2019
How has the tax office treated employer-paid parking fines so far?
The tax authorities generally add warning fines paid by the employer to the drivers' wages subject to wage tax. In the case at hand, this practice was corrected by the FG Düsseldorf in favor of the employer. However, a final clarification by the BFH is still pending.
As of: January 2017
How are employers reimbursed for the energy price allowance they have paid out?
The employer deducts the energy price allowances paid out from the total amount of wage tax to be withheld. If the total allowance granted exceeds the wage tax to be remitted, the excess amount is refunded by the tax office.
As of: July 2022
How does a single person calculate the laundry costs for 2 kg of work clothing per wash?
For a single-person household, applicable rates are, for example, 0.76 € per kg for coloured laundry at 60°C, 0.55 € per kg for condenser drying, and 0.07 € per kg for ironing. For 52 wash cycles of 2 kg each, this results in: 52 × 2 kg × (0.76 + 0.55 + 0.07) € = 143.52 € per year. The amounts per person are lower in larger households.
As of: December 2021
How is the additional tax payment calculated for Kurzarbeitergeld (short-time work allowance) under the Progressionsvorbehalt (progression clause)?
First, the income tax on the regular income excluding Kurzarbeitergeld is determined. Next, a hypothetical income including Kurzarbeitergeld is calculated, and the resulting higher average tax rate is applied to the actual taxable income. The difference between this amount and the wage tax already withheld constitutes the additional payment — for example, 672 euros on an income of 24,000 euros plus 5,573 euros of Kurzarbeitergeld.
As of: May 2021
How is declining-balance depreciation calculated using an example?
For a machine with acquisition costs of EUR 100,000 and a useful life of 6 years, the straight-line depreciation amounts to EUR 16,666 per year. The 2.5x multiple would be EUR 41,665, but declining-balance depreciation is capped at 25%, so a maximum of EUR 25,000 may be depreciated in the first year.
As of: October 2020
How does the IDW assess the risk of a revival of the so-called Cash-GmbH?
In the view of the IDW, there is no risk of reviving the Cash-GmbH through the financial assets test. Neither the 15% safe-harbor threshold, the upfront review of the 90% threshold for harmful administrative assets, nor the 10% threshold for non-harmful administrative assets would produce such an effect. The criticism voiced by the Bundesrat committees is therefore unfounded.
As of: August 2016
How does the BFH define a full-time educational measure?
According to the BFH definition, a full-time educational measure or full-time course of study only exists if the taxpayer must devote themselves to it entirely. If a course of study is specifically designed to be completed alongside gainful employment or with reduced effort, this requirement is not met.
As of: June 2022
How do the tax authorities define 'services rendered within the household' under § 35a EStG?
The BMF guidance letter dated 09.11.2016 expanded this definition: certain services performed outside the property may also qualify, provided they have a functional connection to the household. Examples include winter clearing services on adjacent public sidewalks or work on utility connections to supply and disposal networks. Pure disposal services such as waste removal and sewage disposal, however, do not qualify.
As of: January 2023
How are corporate insolvencies in Germany developing according to the Euler Hermes 2015 forecast?
Euler Hermes forecasts a roughly 2 percent rise in corporate insolvencies in Germany in 2015, to around 24,979 cases. This reverses the previous year's trend, when insolvencies had still declined by 6 percent.
As of: December 2014
How did insolvencies in the automotive trade develop in 2013?
In the automotive sector, the share of total insolvencies in the skilled trades rose from 9.4% in 2012 to 10.1% in 2013. This ran counter to the general decline in insolvencies across the skilled trades.
As of: August 2014
How is church tax withheld on investment income from 1 January 2015?
From 1 January 2015, church tax on investment income subject to the flat-rate withholding tax (Abgeltungsteuer) is automatically withheld as part of the tax deduction process. The entities required to withhold the tax — such as banks, insurance companies and corporations — submit an annual query to the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt) to determine the religious affiliation of the recipient. Based on this information, the church tax is calculated and remitted to the tax office (Finanzamt).
As of: August 2014
How is the distinction between fixed and current assets made for trade tax add-backs?
The decisive factor is the specific business purpose of the company. The operational circumstances of the taxpayer must be considered as closely as possible. Assets that are used only for a short period and serve ongoing business operations typically qualify as current assets.
As of: November 2019
How do I register for the OSS procedure?
Registration is completed online via the Federal Central Tax Office (Bundeszentralamt für Steuern, BZSt) using your VAT identification number. Businesses already enrolled in the Mini-One-Stop-Shop procedure are transferred to the OSS procedure automatically. Subsequent log-in to the BZSt online portal is possible for businesses or their Steuerberater (German Certified Tax Advisor) via Elster signature.
As of: June 2021
How is a photovoltaic system assigned to business assets in practice?
The assignment is typically documented by filing the VAT return claiming input VAT from the photovoltaic system with the tax office in due time. For systems installed in 2015, the 2015 VAT return should therefore be submitted no later than 31 May 2016.
As of: May 2016
How can employees in tax class V or VI obtain the increased short-time work allowance (Kurzarbeitergeld)?
In tax classes V and VI, no child allowance is normally entered on the tax card. The increased rate of 67% can still be granted if the child is verified by a certificate from the Agentur für Arbeit (Federal Employment Agency). Either the employer or the employee may file an informal application, attaching, for example, an extract of the spouse's tax card (for class V) or the employee's additional tax card (for class VI). A payment incorrectly settled at 60% cannot be corrected retroactively.
As of: March 2020
How can I identify a fraudulent email sent in the name of the Bundesfinanzhof?
The forgery often begins with the salutation 'Einen guten Tag, …' followed by the recipient's first and last name and prompts the download of a file. Faulty characters throughout the text are another red flag. The Bundesfinanzhof logo is not necessarily included, which makes identification more difficult.
As of: October 2016
How can you identify phishing emails sent in the name of the Federal Central Tax Office (Bundeszentralamt für Steuern)?
Typical indicators include references to an alleged tax refund, a request to complete a linked form, and queries for bank account or credit card details. Since the BZSt never requests such information by email, these messages are always fraudulent.
As of: January 2017
How can you identify fraudulent emails relating to the Transparenzregister (German Transparency Register)?
Fraudulent emails appear, among others, under the name 'Organisation Transparenzregister e.V.' and refer to websites such as www.TransparenzregisterDeutschland.de. They threaten fines and demand a fee-based registration – both claims are incorrect.
As of: January 2020
How can you identify a high-quality Steuerberater (German Certified Tax Advisor)?
Several indicators help: the quality certification of the Deutscher Steuerberaterverband e.V., certification under DIN EN ISO 9001 in quality management, and recognition in specialist publications such as the annual Focus-Money list of top Steuerberater. Personal recommendations from your network are also a common decision-making aid.
As of: January 2011
How is the Künstlersozialversicherung (artists' social insurance) financed?
Self-employed artists and publicists pay half of the contributions to health, long-term care, and pension insurance themselves, just like employees do. The remaining 50 percent is financed by a federal subsidy (20 percent) and by the Künstlersozialabgabe (artists' social security levy) paid by exploiting companies (30 percent). The Künstlersozialabgabe is levied as an apportionment.
As of: August 2019
How does the new flat-rate allowance for disability-related travel expenses work?
The new § 33 Abs. 2a EStG introduces a flat-rate allowance for travel expenses. Individuals with walking and standing disabilities with a degree of disability (GdB) of at least 80, or at least 70 with the mark "G," receive EUR 900; those with severe walking disabilities (mark "aG"), blind persons, and individuals with the mark "H" receive EUR 4,500. The flat-rate allowance only has a tax effect as an extraordinary expense to the extent it exceeds the reasonable personal contribution. Additional disability-related travel expenses cannot be deducted alongside it.
As of: August 2020
How does the simplified three-month proof of incidental travel expenses work?
The employee only needs to document the actually incurred and regularly recurring incidental travel expenses with individual receipts for a representative three-month period. Based on these expenses, a daily average amount is calculated, which may then be applied until the circumstances change significantly.
As of: December 2012
How does the one-fifth rule under § 34 Abs. 1 EStG work mathematically for overtime compensation?
First, the tax on the annual income without the compensation is calculated. Then, the tax on the annual income plus one-fifth of the overtime compensation is determined. The difference between these two amounts is multiplied by five, yielding the tax on the overtime compensation. This effectively spreads the progression effect over five years and reduces the tax burden.
As of: March 2022
How does the one-fifth rule under Sec. 34 (1) EStG work?
Under the one-fifth rule, the income tax is calculated twice: once without the capital gain and once including one-fifth of the capital gain. The difference between the two tax amounts is multiplied by five, resulting in the tax on the entire capital gain. This mitigates the progression effect of the one-time gain.
As of: June 2023
How does salary conversion work for company bike leasing?
The employer leases the bicycle and provides it to the employee. The leasing rate is deducted directly from the employee's gross salary (salary conversion), so the employer incurs no costs. The employee reduces their taxable income and thus benefits from a lower tax and social security burden.
As of: November 2012
How does the home office flat rate work and who is eligible?
The home office flat rate under § 4 Abs. 5 Nr. 6b sentence 4 EStG allows 5 € per home office day, capped at 120 days or 600 € per year. It is available to every taxpayer, even without a recognised home study. The condition is that no full or partial deduction under § 4 Abs. 5 Nr. 6b sentences 2 and 3 EStG has already been claimed.
As of: November 2021
Wie funktioniert die Homeoffice-Pauschale?
Für Arbeitstage im Homeoffice lässt sich eine Tagespauschale ansetzen. Die kompakte Infografik dazu finden Sie in unserem Merkblatt-Verzeichnis unter "Homeoffice-Pauschale". (Quelle: Deubner Verlag)
How does automatic document recognition work in DATEV systems?
Scanned documents are read using optical character recognition (OCR), and the software automatically generates initial posting suggestions. The system is self-learning: the more receipts processed, the more accurate the suggestions become. This significantly reduces manual data entry.
As of: March 2017
How large is the St. Martin's parade in Bocholt?
The Bocholt city-centre St. Martin's parade is one of the largest in Germany. Saint Martin rides on his horse through the city centre, accompanied by 16 Bocholt schools, the board of the local heritage association (Heimatverein), guests and musical groups.
As of: November 2018
How did the basic tax-free allowance, child tax allowance and child benefit change in 2018?
In 2018, the basic tax-free allowance (Grundfreibetrag) rose from EUR 8,820 to EUR 9,000, and the child tax allowance (Kinderfreibetrag) from EUR 4,716 to EUR 4,788. Child benefit (Kindergeld) increased by EUR 2 per month: EUR 194 for the 1st and 2nd child, EUR 200 for the 3rd child and EUR 225 for each additional child. The effects will only become apparent in the 2018 income tax return.
As of: November 2017
How did corporate insolvencies in Germany develop in 2013?
According to Creditreform, corporate insolvencies declined by a total of 8.4% in 2013. The skilled trades sector recorded a similar decrease of 7.7%. This continued the positive trend from the previous year.
As of: August 2014
How are dry cleaners liable for damaged garments under BGH case law?
According to the BGH ruling of 04.07.2013, the limitation of liability commonly used in standard terms and conditions to 15 times the cleaning price in cases of slight negligence is invalid. Dry cleaners must compensate the full damage in case of damage, as the cleaning price bears no relation to the actual amount of damage.
As of: July 2013
How did the Münster Tax Court rule on shorter depreciation periods for rental properties?
The Münster Tax Court ruled in favor of asset-managing GmbH & Co. KGs that claimed a shorter remaining useful life for buildings from the 1920s and 1950s than the statutory depreciation period of 40 or 50 years. The decision was based on independent market value appraisals prepared in accordance with the ImmoWertV (German Real Estate Valuation Ordinance), which confirmed the shorter useful life.
As of: March 2023
How did the BFH assess the acquisition of a panel doctor's practice for tax purposes?
In its rulings of 21 February 2017 (VII R 7/14 and VIII R 224/16), the BFH held that the acquisition of a panel doctor's practice does not entail the acquisition of a separate intangible asset representing the economic benefit of the panel doctor licence in addition to the practice goodwill. The benefit of the licence is therefore absorbed into the depreciable practice goodwill.
As of: May 2017
How did the BFH rule on deferred retirement?
The BFH clarified that the taxable portion of a pension is determined exclusively by the actual start of the pension. In the case at hand, deferring the pension start by three years (from 2009 to 2012) meant that 64% of the pension was taxable instead of 58%. Retroactive application to the year in which the pension could originally have been claimed is not permitted.
As of: April 2023
How did managing director compensation develop compared to the previous year?
Compared to 2013, average managing director salaries rose by 3.4 percent. This increase is significantly above the general inflation and collective wage trends during this period.
As of: November 2014
How had the tax office originally treated the costs of the conciliation proceedings?
The tax office classified the attorney and expert fees as non-deductible costs of private living and denied their recognition as extraordinary expenses (außergewöhnliche Belastung). Only the Düsseldorf Tax Court rejected this view and allowed the deduction.
As of: December 2013