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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How high may the costs per person be for an anniversary celebration?
In the case decided, the BFH considered costs of approximately EUR 17 per person with around 50 guests to be unobjectionable. There is no fixed upper limit, but expenses should remain within a reasonable range and not exceed what is customary in a professional context.
As of: November 2016
How much is the Baukindergeld (German subsidy for families building or buying a home) and over what period is it paid?
EUR 1,200 per child is paid annually for a maximum of ten years, but no longer than until the child reaches the age of 18. A family with three children can therefore receive a maximum subsidy of EUR 36,000, provided that none of the children come of age within the ten-year period.
As of: December 2018
What is the total budget of the electric vehicle subsidy and how long does it run?
The funding program has a total volume of EUR 600 million and runs until 2019. Once the funds are exhausted, no further premium will be paid out – applications are processed on a first-come, first-served basis.
As of: May 2016
How much is Kurzarbeitergeld (short-time work allowance) and what role do children play?
Kurzarbeitergeld generally amounts to around 60% of the lost net pay. If at least one child eligible for tax consideration within the meaning of § 32 Abs. 1, 3 to 5 EStG lives in the household, Kurzarbeitergeld increases to around 67%. As a rule, a registered child allowance (Kinderfreibetrag) on the income tax card is required.
As of: March 2020
What is the average total salary of German managing directors?
According to a Kienbaum study, the average total salary of German managing directors is approximately EUR 389,000 per year. This represents an increase of around 3.4 percent compared to the previous year 2013.
As of: November 2014
What is the contribution rate of the Künstlersozialabgabe and how is it calculated?
The contribution rate has remained constant at 4.2 % since 2018 and, thanks to government support, also applies unchanged in 2022. For the calculation, this percentage is applied to the total of reportable remuneration. The result is the amount the company must remit to the Künstlersozialkasse.
As of: January 2022
What is the contribution rate for the Künstlersozialabgabe (Artists' Social Security Levy) in 2020?
The contribution rate to the Künstlersozialversicherung (Artists' Social Security Insurance) remains unchanged at 4.2 percent in 2020. This marks the third consecutive year that the rate has remained stable. The assessment basis consists of all fees paid to self-employed artists and publicists within a calendar year.
As of: August 2019
What is the depreciation rate for declining-balance depreciation (degressive AfA)?
The depreciation rate is 2.5 times the straight-line depreciation rate, but capped at a maximum of 25%. It is applied each year to the residual book value at the end of the previous fiscal year (declining-balance depreciation on book value).
As of: October 2020
How much is the age relief amount (Altersentlastungsbetrag) for the 2022 assessment period?
For the 2022 assessment period, the rate is 14.4% of the assessment base, with a maximum amount of €684. The amount is rounded up to full euros. The rate and amount depend on the year following the completion of the taxpayer's 64th year of life (see table in § 24a sentence 5 EStG).
As of: February 2022
How much is the employer's pension insurance contribution for mini-jobs?
The employer pays a flat 15 percent of gross wages to the pension insurance. For mini-jobs in private households, the employer's share is only 5 percent. These flat-rate contributions are due regardless of whether the mini-jobber is subject to mandatory pension insurance or has opted out.
As of: September 2012
What is the amount of the training allowance for a child accommodated away from home?
The annual allowance is €924 (as referenced in the article). It is deducted, together with extraordinary expenses, from the total amount of income to the extent that the reasonable burden under § 33 Abs. 3 EStG is exceeded.
As of: December 2021
What is the amount of the BAV (occupational pension) subsidy from 2025?
From 2025, the BAV subsidy will be raised from a previous maximum of EUR 288 to a maximum of EUR 360 per year. This allows employers to make state-subsidised additional contributions to occupational pension schemes of up to EUR 1,200 per year (previously EUR 960). The subsidy is reimbursed to the employer by offsetting it against wage tax.
As of: December 2024
What is the disability lump-sum allowance from 2021 onwards?
Effective from the 2021 assessment period, the disability lump-sum allowances (Behinderten-Pauschbeträge) were doubled. They range from EUR 384 for a degree of disability (GdB) of 20 up to EUR 2,840 for a GdB of 100. The allowances are granted in increments of 10 GdB points.
As of: November 2021
How is the equity grant supplementing Bridging Aid III (Überbrückungshilfe III) staggered?
For the first and second month with a revenue decline of at least 50 percent, no supplement is granted. From the third month, the supplement amounts to 25 percent, from the fourth month 35 percent, and from the fifth month 40 percent. These rates are applied to the disbursed Bridging Aid III.
As of: April 2021
What is the relief amount for single parents in 2021?
The relief amount for single parents (Entlastungsbetrag für Alleinerziehende) remains in 2021 at the COVID-related increased level of 4,008 euros for the first child. For each additional child, an extra 240 euros is added.
As of: December 2020
What is the relief amount for single parents in 2020 and 2021?
For the years 2020 and 2021, the relief amount is EUR 4,008 per calendar year for the first child. An additional EUR 240 per calendar year applies for each further eligible child. Previously, the relief amount was only EUR 1,908 per calendar year.
As of: December 2021
What is the relief amount for single parents (Entlastungsbetrag für Alleinerziehende) for the assessment periods 2020 to 2022?
For the first child, the relief amount is EUR 4,008 per year in the assessment periods 2020 and 2021. Through the JStG 2022, it was raised to EUR 4,260 from the 2022 assessment period onwards. For each additional child, an extra EUR 240 per year is granted.
As of: February 2023
What is the lump-sum allowance for estate-related costs after the increase?
The lump-sum allowance for estate-related costs (Erbfallkostenpauschbetrag) has been raised from EUR 10,300 to EUR 15,000. Up to this amount, costs related to the inheritance, such as funeral expenses, are recognised as a lump sum without the need for individual proof.
As of: December 2024
What is the tax-free allowance for company events such as Christmas parties?
Since 01/01/2015, a tax-free allowance of 110 euros gross per participating employee applies. This allowance can be claimed for a maximum of two company events per year. Costs for accompanying persons are attributed to the respective employee.
As of: December 2019
What is the real estate transfer tax rate in Germany?
The real estate transfer tax rate is set by the federal states and ranges from 3.5% to 6.5%. In North Rhine-Westphalia, it currently stands at 6.5%. In the case of a unified contract structure, this rate also applies to the construction costs.
As of: January 2018
What is the basic tax-free allowance for 2022 under the Tax Relief Act?
For 2022, the basic tax-free allowance (Grundfreibetrag) is being increased a second time, from the originally planned €9,984 to €10,347. By comparison, it stood at €9,744 in 2021. The measure is intended in particular to relieve lower-income groups.
As of: March 2022
What is the level of property tax relief for rental income losses?
If rental losses exceed 50% of the gross income, 25% of the property tax is waived. In the event of a complete loss of income from the property, 50% of the property tax can be waived.
As of: March 2021
What is the maximum deductible amount for childcare costs from 2025 onwards?
Effective from the 2025 assessment period, the maximum deductible amount for childcare costs will be raised from EUR 4,000 to EUR 4,800 per child. This figure represents the upper limit for the special expenses deduction per child and year.
As of: December 2024
How much is the 2021 child bonus (Kinderbonus) and who receives it?
The 2021 Kinderbonus is a one-time payment of 150 euros per child, paid in addition to the regular child benefit (Kindergeld). Eligible recipients are those entitled to Kindergeld for the child in May 2021; alternatively, entitlement in any other month of 2021 is sufficient. Payment follows the Kindergeld rules, so only one parent receives the bonus. Under the family benefits equalization (Familienleistungsausgleich), the bonus is offset against the child allowance (Kinderfreibetrag).
As of: March 2021
What is the minimum contribution to voluntary health and long-term care insurance in 2018?
The minimum contribution to health and long-term care insurance in 2018 is EUR 377.85 per month, excluding sick pay entitlement and supplementary contribution. This minimum applies even at very low income levels and can only be reduced in cases of hardship.
As of: February 2018
What is the care lump-sum allowance by care level from 2021?
The care lump-sum allowance under § 33b Abs. 6 EStG is restructured: EUR 600 for care level 2, EUR 1,100 for care level 3, and EUR 1,800 (up from EUR 924) for care levels 4 or 5. In addition, the criterion 'helpless' for the person being cared for is no longer required.
As of: August 2020
What is the maximum special expenses deduction for initial training costs?
The maximum amount for the special expenses deduction (Sonderausgabenabzug) is currently EUR 6,000 per year. According to the Federal Constitutional Court, this limit does not violate the principle of tax exemption for the subsistence minimum. Unused amounts cannot be carried forward to later years.
As of: February 2020
How high is the tax deduction and by when must it be remitted?
The recipient of the service must withhold 15% of the consideration and remit it to the tax office. The basis of assessment is the fee including the applicable VAT. Remittance must be made by the 10th of the month following payment; otherwise, late-filing and late-payment surcharges may apply.
As of: May 2023
How high is the penalty surcharge for voluntary disclosure under the new rules?
Up to an evaded amount of EUR 25,000, no penalty surcharge applies. Above this threshold, a tiered system applies: 10 percent for EUR 25,000 to 100,000, 15 percent for more than EUR 100,000 up to EUR 1 million, and 20 percent from EUR 1 million. Previously, a flat surcharge of 5 percent applied only from EUR 50,000 upwards, in each case in addition to interest of 6 percent per year.
As of: July 2014
What is the VAT rate on food in the hospitality sector from 1 July 2020?
From 1 July 2020 to 30 June 2021, VAT on food served in the hospitality sector is temporarily reduced to the lower rate of 7%. The measure was introduced by the Corona-Steuerhilfegesetz (Corona Tax Assistance Act) of 6 May 2020 and is intended to provide economic relief to restaurants, cafés and similar businesses following the crisis. Beverages are not covered by this rule.
As of: May 2020
How high is the pension allowance (Versorgungsfreibetrag) for children in the case of an inheritance?
The pension allowance for children is staggered by age: up to 5 years 52,000 euros, up to 10 years 41,000 euros, up to 15 years 30,700 euros, up to 20 years 20,500 euros, and up to 27 years 10,300 euros. For a surviving spouse or registered civil partner, the pension allowance amounts to 256,000 euros.
As of: January 2022
How high is the late-filing surcharge for submitting a tax return too late?
The late-filing surcharge (Verspätungszuschlag) amounts to 0.25% of the assessed income tax, but at least €25 for each month or part thereof of delay. If the return reaches the tax office within the first 14 months after year-end, the office has discretion in setting the surcharge.
As of: July 2021
What is the average supplementary contribution rate for statutory health insurance funds in 2014?
The average supplementary contribution rate for 2014 is zero euros. The reason is that the projected expenses of the health insurance funds, totaling approximately EUR 199.6 billion, are on average fully covered by allocations from the central health fund (Gesundheitsfonds).
As of: December 2013
What is the reduced tax rate under § 34 Abs. 3 EStG?
The reduced tax rate amounts to 56% of the average tax rate applied to the total taxable income. However, the prevailing entry-level tax rate, currently 14%, serves as the lower limit. This ensures that the preferential rate does not fall below the general minimum level.
As of: June 2023
What is the income tax deduction rate for entertainment expenses?
Since 2004, entertainment expenses are only 70% deductible as business expenses. The remaining 30% are treated as non-deductible business expenses for income tax purposes. Prior to 2004, the deductible portion was 80%.
As of: March 2014
How much is the non-cash benefit for a gross list price of EUR 81,400?
For a gross list price of EUR 81,400, the 1% rule results in a monthly non-cash benefit of EUR 814 for private use. This amount must be taxed as employment income, regardless of the vehicle's actual value.
As of: February 2013
What is the statutory minimum wage from 2017?
The statutory minimum wage will be raised from EUR 8.50 to EUR 8.84 gross per hour effective 01.01.2017. This increase applies in principle to all employees in Germany.
As of: June 2016
What is the statutory minimum wage as of 01/01/2017?
As of 01/01/2017, the statutory minimum wage in Germany rises from EUR 8.50 to EUR 8.84 gross per hour. This increase applies in principle to all employees in Germany.
As of: July 2016
What was the statutory minimum wage in Germany at its introduction?
The statutory minimum wage was introduced at EUR 8.50 gross per hour and generally applies to all employees in Germany, unless a statutory exemption applies.
As of: June 2015
What is the statutory interest rate charged by the tax office on back taxes?
Pursuant to § 238 AO, the tax office charges interest of 0.5% per month, or 6% per year. This rate has remained unchanged for over 50 years and applies to both back payments and refunds.
As of: September 2016
What is the maximum deductible amount for a home office?
Provided the requirements are met, costs of up to EUR 1,250 per year can be claimed. However, if the home office is demonstrably the centre of all business or professional activity, the actual costs are fully deductible.
As of: August 2016
What is the maximum reimbursement amount under Neustarthilfe Plus?
The maximum reimbursement amount under Neustarthilfe Plus remains EUR 4,500 and corresponds to 50% of revenue compared to the reference period. Eligible applicants are, in particular, solo self-employed individuals and cooperatives.
As of: November 2021
What is the new allowance for the trade tax add-back of financing expenses?
The allowance for the add-back of financing expenses (e.g. interest, rent, lease payments) was doubled from EUR 100,000 to EUR 200,000 per year under the Second Corona Tax Relief Act. Financing expenses are generally added back at 25%, and at 50% for immovable property. Only expenses exceeding the allowance increase the trade income.
As of: December 2020
What is the new interest rate under Section 233a AO?
Under the new regulation, the interest rate on tax arrears and refunds has been reduced retroactively to 1 January 2019 to 0.15% per month, or 1.8% per year. Previously, it was 0.5% per month, or 6% per year. The rate applies to all taxes listed in § 233a Abs. 1 AO, namely income, corporate, wealth, value-added, and trade tax.
As of: May 2022
How high is the tax-free Corona bonus for nursing staff, and who is eligible?
The tax-free Corona bonus under § 3 No. 11 EStG was raised to €4,500. Eligible recipients include hospital staff as well as employees of outpatient surgical facilities, certain preventive and rehabilitation facilities, dialysis centers, medical and dental practices, and rescue services. Payment must be made between 18 November 2021 and 31 December 2022 and must be granted in addition to the wages already owed; voluntary employer payments are also covered.
As of: June 2022
How much is the annual home office flat rate and when is it reduced?
Instead of deducting actual costs, an annual flat rate of EUR 1,260 can be claimed without receipts (§ 4 Abs. 5 Satz 1 Nr. 6b Satz 3 EStG). If the activity begins or ends mid-year, the flat rate must be reduced by one-twelfth for each full month in which the home office requirements were not met. Both the flat rate and the full cost deduction require that the home office is the center of the professional activity.
As of: September 2023
What is the de minimis threshold for the commercial infection of a partnership?
Commercial infection only occurs if the commercial turnover exceeds 3% of the partnership's total net turnover and at the same time exceeds EUR 24,500 per calendar year. For smaller photovoltaic systems, this threshold was rarely exceeded in practice.
As of: October 2023
What is the contribution assessment ceiling in the statutory health insurance (GKV) for 2014?
The contribution assessment ceiling in the statutory health insurance will rise to EUR 48,600 per year as of 01.01.2014 (2013: EUR 47,250). Up to this amount, contributory income is used to calculate contributions in the GKV.
As of: December 2013
What is the flat-rate business expense allowance for childminders?
The flat-rate business expense allowance is 300 euros per child cared for, per month, based on a weekly care time of 40 hours. If the agreed care time is shorter, the allowance is calculated proportionally using the formula: 300 € × agreed care time / 40 hours. It is always required that the care takes place in the childminder's own household.
As of: July 2021
What is the lump-sum business expense allowance for full-time writers and journalists as of 2023?
Starting with the 2023 assessment period, full-time self-employed writers and journalists may deduct a flat 30% of their business income as business expenses, capped at EUR 3,600 per year. Until 2022, the cap was EUR 2,455. The basis is the BMF circular dated 06.04.2023.
As of: December 2023