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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What is the social insurance reference value for 2014?
Effective 2014, the reference value (Bezugsgröße) rises to EUR 2,765 per month (2013: EUR 2,695). It serves as the calculation basis for numerous social insurance figures, such as the minimum contribution assessment basis for voluntary members of the statutory health insurance (GKV), and also applies to the statutory long-term care insurance.
As of: December 2013
How much is the Corona emergency aid based on number of employees?
Solo self-employed individuals and micro-enterprises with up to 5 employees (full-time equivalents) receive a one-time payment of €9,000 for three months. For up to 10 employees, the subsidy is €15,000. NRW additionally supplements the federal funding with €25,000 for companies with 10 to 50 employees.
As of: March 2020
What is the feed-in tariff for new PV systems with full feed-in?
Under full feed-in, new systems receive 13.0 cents/kWh for the first 10 kWp and 10.9 cents/kWh for any capacity exceeding that. A 13-kWp system thus achieves an average of 12.5 cents/kWh. This requires commissioning on or after 30 July 2022 and is still subject to approval by the EU Commission.
As of: September 2022
How much is the commuter allowance per kilometre?
For the one-way distance between your home and your primary place of work, you may claim €0.30 per kilometre as income-related expenses. From 2021 onward, the rate increases from the 21st kilometre to €0.35 (2021–2023) and €0.38 (2024–2026). The allowance applies regardless of the means of transport used.
As of: January 2022
What is the amount of compensation under § 56 IfSG?
For occupational bans or quarantine measures under § 56 Abs. 1 IfSG, the full loss of earnings is reimbursed initially; from the seventh week onward, the benefit is reduced to the level of sick pay under § 47 Abs. 1 SGB V. In the case of school or daycare closures, compensation amounts to 67% of net income, capped at €2,016 per month, and is paid for up to 10 weeks per working parent (up to 20 weeks for single parents).
As of: November 2020
How is the fixed cost reimbursement structured under Überbrückungshilfe III?
Reimbursement is tiered according to the decline in revenue: up to 90% of eligible fixed costs for a revenue drop of more than 70%, up to 60% for a decline between 50% and 70%, and up to 40% for a decline of more than 30%. This tiered structure mirrors the approach used under Überbrückungshilfe II.
As of: March 2021
What is the current exemption limit for company events?
Employer expenses for up to two company events per year remain free of tax and social security contributions up to EUR 110 (including VAT) per event and employee. This is an exemption limit (Freigrenze), not an allowance (Freibetrag) — meaning the entire amount becomes taxable if the threshold is exceeded.
As of: October 2014
What is the level of fixed-cost funding under Überbrückungshilfe IV?
For revenue losses of more than 70%, up to 90% of eligible fixed costs are reimbursed. For losses between 50% and 70%, up to 60% are reimbursed, and for losses of more than 30%, up to 40%. This tiered structure is identical to Überbrückungshilfe III Plus.
As of: December 2021
How much is the November Aid (Novemberhilfe) and how is it calculated?
The Novemberhilfe amounts to 75% of the November 2019 revenue, prorated by day for the duration of the lockdown. Solo self-employed individuals may alternatively use their average monthly revenue from 2019. For businesses founded after October 31, 2019, the monthly revenue from October 2020 or the average monthly revenue since founding may be applied.
As of: November 2020
How much funding is available under the NRW program for digital retail?
The funding rate is 90% of eligible expenses. The maximum grant is capped at EUR 12,000.
As of: July 2020
What is the low-value asset (GWG) threshold from 2018 onwards?
As of 2018, the threshold for low-value assets (geringwertige Wirtschaftsgüter, GWG) was raised from EUR 410 to EUR 800 net. Taxpayers — whether entrepreneurs, freelancers, or employees — may deduct business-related assets up to this net amount in full as business expenses or income-related expenses in the year of acquisition or production. The new rule applies to assets acquired or produced from 2018 onwards.
As of: August 2017
What is the regular additional earnings limit for early old-age pensions?
Recipients of an early old-age pension may regularly earn up to EUR 6,300 per year in addition without any reduction of their statutory pension. If this threshold is exceeded, the excess amount is partially offset against the pension.
As of: March 2020
How much is the home office flat rate for 2020 and 2021?
For the years 2020 and 2021, taxpayers can claim a flat rate of EUR 5 per calendar day as income-related expenses for each day worked exclusively from home. The annual maximum is EUR 600, equivalent to 120 home office days. This flat rate also applies when the strict requirements for a dedicated home office room are not met.
As of: January 2021
What is the annual income threshold for statutory health insurance (GKV) from 2014?
As of January 1, 2014, the general annual income threshold (compulsory insurance limit) in the statutory health insurance system rises to EUR 53,550 per year. In 2013, it was still EUR 52,200. Employees whose income exceeds this threshold may opt out of the statutory health insurance.
As of: December 2013
How much is the purchase premium for electric cars and plug-in hybrids?
For the purchase of a pure electric car, a premium of EUR 4,000 is granted; for plug-in hybrids, the premium amounts to EUR 3,000. The federal government and industry each cover half of the subsidy. The Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA) is responsible for disbursement, and applications can also be submitted online.
As of: May 2016
How much is the Künstlersozialabgabe (artists' social security contribution) in 2017?
The contribution rate for the Künstlersozialversicherung (artists' social security) is 4.8% in 2017. This represents a reduction from the previous year's rate of 5.2%. The reduction was published in the Bundesgesetzblatt (Federal Law Gazette).
As of: August 2016
What is the distance selling threshold for mail order to France?
The distance selling threshold for dispatch and transport supplies from other EU Member States to private customers in France was reduced from EUR 100,000 to EUR 35,000 net as of 1 January 2016. If this threshold is exceeded, the place of supply shifts to France.
As of: April 2016
What is the minijob earnings threshold from 2025?
Due to the increase of the statutory minimum wage to EUR 12.82 per hour, the monthly earnings threshold for minijob employees will rise from EUR 538 to EUR 556 as of 1 January 2025. This allows for roughly 43 working hours per month; with a higher hourly wage, the permitted working time is reduced accordingly.
As of: December 2024
How much is the Neustarthilfe Plus in the extended 2022 period?
The Neustarthilfe Plus has been extended through the end of March 2022. The funding amount remains unchanged at EUR 1,500 per month, or a maximum of EUR 4,500 for the entire extended funding period.
As of: December 2021
How much is the Neustarthilfe (restart aid) and how is it calculated?
The Neustarthilfe amounts to 50% of the six-month reference turnover and is capped at a maximum advance of EUR 7,500. The reference turnover is generally derived from the 2019 annual turnover: (2019 annual turnover / 12) × 6. Applicants who started their business activity between 01/01/2019 and 01/05/2020 may choose between three alternative calculation methods.
As of: March 2021
What is the commuter allowance from 2021 onwards?
From 2021, the distance allowance is 30 cents for the first 20 kilometres of the one-way commute. From the 21st kilometre onwards, it was increased from 30 cents to 35 cents. This increase was adopted as part of the Act Implementing the 2030 Climate Protection Programme.
As of: December 2020
What is the commuter allowance from 2021 onwards?
From 2021, the distance allowance remains unchanged at EUR 0.30 per kilometer for the first 20 kilometers. From the 21st kilometer onwards, it increases to EUR 0.35 for the years 2021 to 2023 and to EUR 0.38 for the years 2024 to 2026.
As of: March 2020
What share of the credit risk does KfW assume under the Corona aid programme for SMEs?
For small and medium-sized enterprises (SMEs), KfW assumes 90% of the credit risk; for larger companies and in syndicated financing, 80%. This is backed by a federal government guarantee. The remaining 10% or 20% is borne by the applicant's house bank, which is intended to facilitate lending.
As of: March 2020
What is the rate of the special depreciation under Section 7b EStG, and over what period does it apply?
The special depreciation amounts to up to 5% per year and may be claimed in the year of acquisition/production and in the three following years, totaling up to 20% over four years. It is granted in addition to the straight-line depreciation under Section 7 (4) EStG. After the benefit period ends, further depreciation continues on a straight-line basis from the remaining book value.
As of: March 2023
How much is the tax reduction for energy-efficient refurbishments?
Over a three-year period, a total of 20% of the expenses, capped at EUR 40,000 per property, can be deducted from income tax. In the first and second years, 7% each (max. EUR 14,000) is deductible, and in the third year 6% (max. EUR 12,000). Fees for energy consultants or energy efficiency experts are immediately deductible at 50% in the year of payment.
As of: April 2024
How high is the tax reduction for household-related services under § 35a Abs. 2 EStG?
Upon application, the income tax due is reduced by 20% of the expenses incurred, but by no more than €4,000 per year. The prerequisite is that the services qualify as household-related services not already covered by § 35a Abs. 3 EStG (tradesperson services), and that they are performed within the taxpayer's household.
As of: May 2023
How much is the tax reduction for household-related services?
Upon application, the income tax liability is reduced by 20% of the expenses for household-related services. The maximum deductible amount is €4,000 per year. Only labor costs are taken into account, not material costs.
As of: April 2015
What is the tax reduction under § 35a Abs. 2 and Abs. 3 EStG?
For household-related services under § 35a Abs. 2 EStG, the income tax is reduced by 20% of the expenses, capped at EUR 4,000. For tradesperson services under § 35a Abs. 3 EStG, the reduction is likewise 20% of the expenses, but limited to a maximum of EUR 1,200 per year.
As of: August 2023
How high is the tax reduction under § 35c EStG, and over what period is it granted?
The reduction is spread over three years: in the year the measure is completed and in the following year, 7% of the expenses each (max. EUR 14,000 per year); in the third year, 6% (max. EUR 12,000). In total, 20% of the expenses, up to EUR 40,000 per property, are eligible. This means that a maximum of EUR 200,000 in expenses per property can be taken into account.
As of: September 2020
What is the relocation expense allowance for miscellaneous costs from April 2022?
Effective 01.04.2022, the flat-rate allowance for miscellaneous relocation expenses is EUR 886 for the person relocating and an additional EUR 590 for each further household member (spouse, civil partner, children). This flat rate can be claimed without itemised proof. Alternatively, actual costs may be substantiated by invoices.
As of: August 2021
What is the earnings threshold for mini-jobs from 2013 onwards?
From 2013, the monthly earnings threshold for mini-jobs will be raised from EUR 400 to EUR 450. The adjustment reflects general price and wage developments. Mini-jobbers can therefore earn up to EUR 450 per month free of tax and social security contributions (subject to flat-rate contributions paid by the employer).
As of: September 2012
What is the level of relief for business assets under inheritance tax?
Even after the reform, business assets can be exempted from inheritance and gift tax at 85% (standard relief) or 100% (optional relief under section 13a (10) ErbStG, new version). The prerequisites are that the business is continued for five or seven years, respectively, and that the payroll requirement is met.
As of: October 2016
How much relief from inheritance tax is available for business successions?
Heirs of a business can be exempted from inheritance tax by 85% or up to 100%. The prerequisite is that the business is continued for five or seven years respectively and that jobs are preserved.
As of: September 2016
How much is the housing construction premium (Wohnungsbauprämie) from 2021 onwards?
From 2021, the Wohnungsbauprämie amounts to 10 percent (previously 8.8 percent) of the building society contributions paid in. The maximum eligible amount is 700 euros per year for single individuals and 1,400 euros for couples, corresponding to a maximum premium of 70 or 140 euros respectively.
As of: December 2020
What is Germany's tax-to-GDP ratio according to the OECD study?
Germany's tax revenue amounts to 36.7 % of gross domestic product. This represents an increase of 0.2 percentage points over the previous year and marks a historic high, previously reached only in 1977 and 1978.
As of: December 2014
How high is the simple trade tax deduction for business real estate?
The simple deduction amounts to 1.2% of the assessed value (Einheitswert, until 31/12/2024) or the property tax value (Grundsteuerwert, from 01/01/2025) of the real estate belonging to the business assets that is not exempt from property tax. The relevant date is the beginning of the calendar year. Only the portion of a property that actually belongs to the business assets qualifies for the deduction.
As of: March 2023
What is the new mini-job threshold as of October 2022?
The marginal earnings threshold is being raised from the previous EUR 450 to EUR 520 per month. This is intended to prevent mini-job employees from having to permanently reduce their working hours due to rising minimum wages in order to stay below the threshold.
As of: March 2022
What is the new threshold for the immediate write-off of low-value assets (GwG)?
The threshold for low-value assets (geringwertige Wirtschaftsgüter) has been raised from the previous EUR 410 to EUR 800. As a result, acquisitions with a net value of up to EUR 800 can be fully written off in the year of acquisition. The new rule takes effect on 01/01/2018.
As of: March 2017
What is the flat-rate wage tax for a company event costing 140 euros per participant?
At 140 euros per participant, the employer may apply a flat-rate tax of 25 percent on the benefit. This results in a flat-rate wage tax of 35 euros per employee. In addition, the solidarity surcharge and, where applicable, church tax also apply.
As of: October 2012
What is the reasonable personal contribution for married couples with two children?
For married taxpayers with two children and a total income between EUR 15,341 and EUR 51,130, the reasonable personal contribution amounts to 3 percent. With an income of EUR 50,000, self-paid medical expenses must therefore exceed approximately EUR 1,500 before the excess amount becomes tax-deductible.
As of: September 2013
How much is the bridging aid (Überbrückungshilfe) and what evidence is required?
For a revenue decline of at least 50%, up to 50% of fixed operating costs are reimbursed; for declines exceeding 70%, up to 80%. The maximum reimbursement is €150,000 over three months; for companies with up to 5 employees generally max. €9,000, and up to 10 employees €15,000. Revenue declines and fixed operating costs must be reviewed and confirmed by a Steuerberater (German Certified Tax Advisor) or Wirtschaftsprüfer (German Statutory Auditor); overpayments must be refunded.
As of: June 2020
What are the basic tax-free allowance and child allowance for 2021?
The basic tax-free allowance (Grundfreibetrag) will rise in 2021 from EUR 9,408 to EUR 9,696. The child allowance (Kinderfreibetrag) will be increased per parent from EUR 2,586 to EUR 2,730, and the childcare allowance (Betreuungsfreibetrag) from EUR 1,320 to EUR 1,464 per parent. In total, this results in an allowance of EUR 8,388 per child (previously EUR 7,812).
As of: December 2020
What are the maximum funding amount and advance payments?
The monthly maximum funding amount has been raised from 50,000 euros to 1.5 million euros. Advance payments can be up to 100,000 euros per funding month and are granted equally to all eligible companies.
As of: March 2021
What are the lump-sum allowances for persons with disabilities from 2021?
The lump-sum allowances for persons with disabilities under § 33b Abs. 3 EStG are doubled from 2021 onwards. For persons classified as helpless within the meaning of § 33b Abs. 6 EStG and for the blind, the allowance increases from EUR 3,700 to EUR 7,400. The remaining allowances, graduated according to the degree of disability, are also doubled accordingly.
As of: August 2020
What are the social security contribution assessment ceilings in 2025?
As of 1 January 2025, uniform nationwide values apply. The contribution assessment ceiling (BBG) for pension and unemployment insurance is EUR 8,050 per month (EUR 96,600 per year), and EUR 9,900 per month for the miners' pension insurance. For statutory health and long-term care insurance, the BBG is EUR 5,512.50 per month (EUR 66,150 per year), with the general annual income threshold set at EUR 73,800.
As of: December 2024
What are the inheritance tax rates by tax class and asset value?
In tax class I, rates range from 7% (up to EUR 75,000) to 30% (over EUR 26 million). In tax class II, they range from 15% to 43%, and in tax class III from 30% to 50%. The applicable rate is applied to the assets exceeding the personal allowance.
As of: January 2022
How much can be saved with the EU Unitary Patent?
Through centralized patent registration via the European Patent Office, costs drop from around EUR 36,000 to roughly EUR 6,500 per patent. This represents a cost reduction of up to 80 percent. The savings result from eliminating the previously required country-specific validations in each EU member state.
As of: August 2013
How much interest does the tax office charge on back taxes?
Interest on back taxes under § 233a AO has remained unchanged for over 35 years at 0.5% per month, i.e. 6% per year. The same rate also applies to refund interest paid by the tax office to taxpayers.
As of: February 2014
How high are the fixed-cost subsidies under Überbrückungshilfe II (Bridging Assistance II)?
Up to EUR 50,000 per month is reimbursed, staggered by revenue decline: 90% of fixed costs for a revenue decline of more than 70%, 60% for a decline between 50% and 70%, and 40% for a decline of more than 30%. The flat-rate allowance for personnel costs has been increased from 10% to 20% of eligible costs. The former caps for micro-enterprises with up to 5 or 10 employees have been abolished.
As of: November 2020
What are the 2024 domestic per-diem meal allowances in Germany?
For absences of more than 8 hours from home and the primary place of work, €14 per calendar day may be claimed. For a full 24-hour absence, the rate is €28 per day. For arrival and departure days on multi-day trips, a flat €14 applies regardless of the length of absence.
As of: July 2022