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 are the new per diem meal allowances from 2020?
The per diem meal allowances for business trips or double household management have been increased. For a 24-hour absence, the allowance rises from EUR 24 to EUR 28; for arrival and departure days or absences exceeding 8 hours, it increases from EUR 12 to EUR 14.
As of: August 2019
What are the projected expenditures of the statutory health insurance funds for 2014?
The German federal government projects expenditures of the statutory health insurance funds of approximately EUR 199.6 billion in 2014. On average, these expenditures are expected to be fully covered by allocations from the health fund (Gesundheitsfonds).
As of: December 2013
What are the trainer's allowance and volunteer allowance from 2021 onwards?
From 2021, the trainer's allowance (Übungsleiterpauschale) increases from EUR 2,400 to EUR 3,000 per year. At the same time, the volunteer allowance (Ehrenamtspauschale) is raised from EUR 720 to EUR 840. This provides stronger tax incentives for voluntary work.
As of: January 2021
What are the trainer's allowance and honorary office allowance amounts since 2021?
Since 01/01/2021, the tax-free trainer's allowance (Übungsleiterfreibetrag) has been EUR 3,000 per year (previously EUR 2,400), and the honorary office allowance (Ehrenamtspauschale) is EUR 840 per year (previously EUR 720). Income up to these amounts remains exempt from tax and social security contributions.
As of: August 2021
What will the Künstlersozialabgabe (artists' social security contribution) rate be in 2017?
According to the proposal of the Federal Minister of Labour, the contribution rate to the Künstlersozialversicherung (artists' social insurance) is to be reduced from the current 5.2 percent to 4.8 percent in 2017. The corresponding draft of the 2017 Künstlersozialabgabe-Verordnung (Ordinance on the Artists' Social Security Contribution) will shortly be submitted for interdepartmental coordination.
As of: June 2016
How high will the new low-value asset (GWG) threshold for immediate write-off be in the future?
The threshold for low-value assets (geringwertige Wirtschaftsgüter, GWG) is set to be raised from the current €800 to €1,000 (net, excluding VAT) per asset. Up to this amount, the acquisition or production costs can be fully deducted as business expenses immediately.
As of: December 2023
How high was the Corona consulting subsidy and who was eligible to apply?
SMEs and freelancers affected by the Corona crisis were able to receive a subsidy covering 100% of the invoiced consulting costs, capped at EUR 4,000, with no own contribution required. The subsidy was paid directly into the consultant's account.
As of: March 2020
What were the VAT rates under the 2020 economic stimulus package?
Under the 2020 economic stimulus package, the standard VAT rate was reduced from 19 percent to 16 percent from 1 July to 31 December 2020. During the same period, the reduced rate was lowered from 7 percent to 5 percent. The aim was to boost consumption and revive the economy following the coronavirus restrictions.
As of: June 2020
Wie hoch wird der gesetzliche Mindestlohn?
Der gesetzliche Mindestlohn steigt in den nächsten Stufen — die Beträge und Termine finden Sie mit Fundstelle im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
How much in additional tax revenue did tax audits generate in 2012?
In 2012, approximately 13,271 tax auditors in Germany generated around EUR 19 billion in additional taxes and interest. Samples were drawn from approximately 8.5 million businesses. The largest results came from corporate income tax (EUR 5.13 billion) and trade tax (EUR 4.03 billion), while VAT contributed comparatively little at EUR 1.9 billion.
As of: August 2013
How are insolvency forecasts and gross domestic product linked?
Euler Hermes expects weaker growth in German gross domestic product and views this as a key driver of rising insolvency figures. Slower economic growth means fewer orders and reduced liquidity for companies, which encourages payment defaults and insolvencies.
As of: December 2014
How should mixed businesses (property developers and general contractors) proceed?
For companies operating both as property developers and as general contractors, a case-by-case review is required. The decisive factor is the actual use of the construction service received: if it serves a tax-exempt property transfer in the role of property developer, § 13b UStG does not apply. If it is used for the company's own taxable construction service as general contractor, the reverse charge mechanism applies.
As of: December 2013
How should the term "own real estate" be interpreted when there is a participation in an asset-managing partnership?
In the view of the Fourth Senate, the term is to be interpreted under tax law. The civil-law ownership of an asset-managing partnership is attributed pro rata to its partners for tax purposes, so that the property qualifies on a pro rata basis as own real estate of the participating company. The First Senate of the BFH (judgment of 19 October 2010, I R 67/09), by contrast, takes a purely civil-law view and attributes the real estate solely to the partnership.
As of: November 2016
How will the surcharge under Section 398a AO be tiered in the future?
The surcharge is to be tiered based on the amount of tax evaded: 10% for amounts exceeding €25,000 up to €100,000, 15% for amounts exceeding €100,000 up to €1,000,000, and 20% for amounts exceeding €1,000,000. This significantly increases the financial burden of a voluntary disclosure.
As of: November 2014
How must the ordering of laboratory tests by therapists be documented?
The laboratory operator must sufficiently document the therapeutic order. In the disputed case, the plaintiff had recorded the orders in writing; for verification, several therapists were selected at random, and their written confirmations substantiated the orders.
As of: September 2016
How is working time recording currently regulated under German law?
Under § 16 Abs. 2 Satz 1 ArbZG, employers have so far only been required to record working hours exceeding the standard daily working time, i.e. overtime as well as work on Sundays and public holidays. A comprehensive recording obligation currently exists under German law only for the industries listed in § 17 MiLoG.
As of: August 2019
How is the Corona emergency aid treated for tax purposes?
The Corona emergency aid must be reported as operating income for income tax purposes in your 2020 tax return. No VAT is due, as there is no exchange of services and the subsidy is therefore not subject to VAT.
As of: May 2020
How is the final accounting of the Corona aid programs divided into packages?
Package 1 covers Überbrückungshilfen I through III as well as the November and December aid. Überbrückungshilfe III Plus and Überbrückungshilfe IV are accounted for in separate packages. Submissions must be made in chronological order of the funding programs.
As of: May 2022
How is the Wirtschafts-Identifikationsnummer structured?
The W-IdNr. consists of a base number to which a five-digit distinguishing feature is added. This allows different economic activities and business locations of a company to be uniquely identified. Group structures can also be reflected more accurately in this way.
As of: September 2024
How is the new Dutch VAT identification number for sole proprietors structured?
The new VAT ID starts with the country code 'NL', followed by 12 characters. These may consist of any sequence of digits, uppercase letters, and the special characters '+' and '*'. Positions 11 and 12 are always digits.
As of: January 2020
How is a chain transaction with more than three parties treated?
If more than three businesses are involved in the supply chain, the simplification rule for intra-Community triangular transactions cannot be applied to the entire chain. The provisions of Sec. 25b UStG then only apply to the last three businesses in the supply chain, provided that the remaining requirements are met at that point.
As of: February 2024
How is a World Cup bonus paid by the DFB to national team players treated for tax purposes?
According to the prevailing view, a World Cup bonus paid by the DFB to the players qualifies as wages from a third party. It is therefore part of income from employment and subject to wage tax withholding, as the payment accrues within the scope of the existing employment relationship with the club.
As of: July 2014
How is Section 12 (2) No. 10 UStG to be interpreted in car-free municipalities?
The provision is based on the assumption that passenger car traffic is generally permitted within municipalities. Where this is not the case, such as on car-free islands, it must not be concluded that tax-privileged passenger transport is impossible. Instead, comparable non-motorised forms of transport must be taken into account.
As of: January 2020
How can the share of revenue attributable to parking spaces be determined?
If no separate fee is charged for the parking space, the relevant share must be estimated from the total price. In the decided case, the tax office applied a calculated value of €1.50 per hotel guest and subjected it to the standard VAT rate of 19%.
As of: July 2016
How can BEW Bocholt be contacted to apply for a reduction in advance payments?
Bocholt Energie- und Wasserversorgung can be reached by phone at 0800 9549540 or by email at info@bew-bocholt.de. Further information is available at www.bew-bocholt.de. Applications submitted after 25 March should be coordinated directly with BEW.
As of: March 2020
How can the receipt issuance obligation be fulfilled electronically?
Since 01.01.2020, a receipt must be issued for every business transaction, regardless of whether the customer takes it. With the customer's implied consent, electronic provision (e.g., PDF, JPG, or QR code) is also permitted, for instance via a notice at the till. The key requirement is that the customer can receive or download the receipt; a paper receipt must still be printed on request.
As of: September 2020
How can parental leave be split and transferred under the new rules?
Parental leave can be split into up to three blocks. In addition, parents can transfer up to 24 months of parental leave to the period between the child's 3rd and 8th birthday. Previously, only two blocks and a transfer of a maximum of 12 months were permitted.
As of: January 2015
How can a spouse prove that parts of the assets already belonged to them prior to the transfer?
The recipient spouse must demonstrate, through documentation and verifiable circumstances, that the balance was attributable in whole or in part to them in the internal relationship—for example, by providing proof of origin for their own deposits or clear agreements. Without such evidence, the tax office will presume a full gratuitous transfer.
As of: September 2016
How can a minority shareholder-managing director be exempted from social security contributions?
By including a special provision in the articles of association that grants sufficient freedom from instructions. A common arrangement is that changes to the employment contract or the removal of the managing director require their own consent. This enables them to block resolutions made to their detriment.
As of: January 2017
How can an entrepreneur gradually scale back their patriarchal role?
One way is to develop personal hobbies or take on honorary positions, thereby progressively reducing professional commitments. This creates room for the successor to make their own decisions and assume responsibility. A gradual withdrawal has a positive effect on the handover process.
As of: April 2015
Wie kann ich Kinderbetreuungskosten absetzen?
Kinderbetreuungskosten sind unter bestimmten Voraussetzungen als Sonderausgaben abziehbar. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Kinderbetreuungskosten". (Quelle: Deubner Verlag)
How can taxation on a property sale be avoided in the event of divorce?
From a tax perspective, a sale after expiry of the 10-year speculation period is advantageous. Within this period, a tax-free sale is possible if it takes place immediately before or upon a spouse moving out, or while the marriage is still intact. In the latter case, use by the spouse is not deemed harmful, as the spouse is not yet regarded as an unrelated third party.
As of: August 2023
How can the risk of bogus self-employment be mitigated?
Self-employed individuals should avoid working for a single client on a permanent basis and should not derive more than 5/6 of their revenue from one customer. Being subject to instructions—for example, through participation in internal meetings—should be avoided. For legal certainty, a status determination procedure (Statusfeststellungsverfahren) can be filed with the Deutsche Rentenversicherung within one month of starting the engagement.
As of: September 2016
How can taxpayers challenge high interest charges on tax arrears?
Taxpayers should file an appeal against the interest assessment within the one-month appeal period. In the appeal, they should request a stay of proceedings, citing the pending case before the BFH, in order to benefit from a possible ruling in favor of taxpayers.
As of: February 2014
How can taxpayers challenge excessive interest on back taxes in their tax assessment?
Affected taxpayers should file an objection (Einspruch) against the interest assessment within the objection period and refer to the pending model proceedings at the FG Münster (10 K 2472/16E) and at the BFH (I R 77/15 and III R 10/16). This keeps the assessment open on this point.
As of: September 2016
How can employees with tax class V or VI obtain the increased benefit rate?
They need a certificate from the Agentur für Arbeit, which can be requested informally by either the employer or the employee. For tax class V, an extract from the spouse's electronic Lohnsteuerkarte showing the child allowance must be attached; for tax class VI, an extract showing tax class I, II, III, or IV is required. If short-time work compensation is mistakenly calculated at only 60 percent, this cannot be corrected retroactively.
As of: March 2020
How can employers avoid the risk of losing reimbursement?
Employers should review their employment contracts to check whether § 616 BGB has been expressly excluded. If the provision is not excluded, contracts should be amended accordingly so that the reimbursement claim under § 56 IfSG remains intact in the event of quarantine or closure. This helps avoid the financial burden of continued wage payments without reimbursement.
As of: November 2020
How can employees verify their wage tax deduction details (Lohnsteuerabzugsmerkmale)?
The verification can be carried out online via the portal www.elsteronline.de. Alternatively, employees can contact their local tax office directly to review the stored data and have it corrected if necessary.
As of: December 2012
How can receipts be transferred to accounting via smartphone in the future?
Starting in mid-2017, a scanning app will be available that allows clients to transfer receipt images directly from their smartphone to their Steuerberater's (German Certified Tax Advisor) accounting system. This eliminates the need to physically deliver receipts and enables prompt processing. A connection to a digital accounting system such as DATEV is required.
As of: March 2017
How can EC card transactions be properly corrected after the fact?
If EC card transactions were initially recorded in the cash book, they can subsequently be flagged separately or transferred to a separate account. Although the formal deficiency remains, this preserves the ability to perform a cash count reconciliation (Kassensturzfähigkeit).
As of: July 2018
How can retailers in Bocholt reduce their energy advance payments during the coronavirus crisis?
Bocholt Energie- und Wasserversorgung (BEW) allowed retailers to lower their monthly advance payments for business premises by 50% starting 1 April 2020. This required a formal application submitted to BEW. To reduce the April installment, the application had to be received by 25 March.
As of: March 2020
How can single-purpose vouchers be used to lock in the reduced VAT rate?
With a single-purpose voucher, the place of supply and the applicable VAT rate are already determined at the time of issue, so VAT becomes chargeable upon issuance. If such a voucher is issued by 31 December 2020, 16% VAT applies—even if the underlying service is rendered in 2021. For single-purpose vouchers issued before 1 July 2020 at 19%, a reversal with cash refund is recommended.
As of: July 2020
How can annual bonuses for 2020 be settled in a simplified manner under the VAT rate reduction?
For simplification, an annual rebate for 2020 may be allocated on a flat-rate basis: 50% at 19% or 7% (January to June) and 50% at 16% or 5% (July to December), irrespective of the actual time of turnover. Alternatively, the entrepreneur may apply 19% to the entire annual bonus without exception.
As of: July 2020
How can clients approach the switch to digital accounting?
The transition takes place step by step, ideally together with the firm, which deploys IT/practice management and financial accounting specialists. Typical steps include introducing digital document processing (e.g., via DATEV Unternehmen online), connecting the bank, and integrating existing systems such as merchandise management or dunning.
As of: July 2019
How do clients benefit from a well-digitalized tax firm in times of crisis?
A digitally equipped firm remains operational even during lockdowns and can promptly support clients with short-time work, VAT changes, or applications for bridging aid. Digital communication channels and rapid information flow enable quick answers to questions. Clients and the firm work through new topics together.
As of: December 2020
How can support payments to relatives be claimed for tax purposes?
Support payments to dependent relatives and children can be claimed as extraordinary expenses in the income tax return pursuant to § 33a EStG. For payments to divorced spouses, there is an option to choose between extraordinary expenses and the special expense deduction (Realsplitting). A prerequisite is that the recipient is unable to provide for their own maintenance.
As of: April 2021
How can companies continuously improve or stabilize their rating?
Key factors are tailored reporting, structured and regular communication with financing banks, and timely provision of relevant business information. This creates transparency, which has a positive impact on the rating assessment. Professional guidance by rating experts can support the process.
As of: April 2005
How can adverse consequences of the mandatory book value approach be avoided for prior transfers?
If the mandatory book value approach has an adverse effect on the co-entrepreneurs, the co-entrepreneurs holding interests in both co-entrepreneurships may jointly apply for § 6 Abs. 5 Satz 3 Nr. 4 EStG not to be applied to transfers made before 12 January 2024.
As of: December 2024
How can employees apply for exemption from compulsory insurance?
Affected employees can apply for exemption from compulsory health, long-term care and unemployment insurance by submitting a written request directly to their employer. No application to the insurance providers is required. The employer processes the exemption internally.
As of: September 2022
How can mini-jobbers be exempted from compulsory pension insurance?
Marginally employed workers can submit a written exemption request to their employer at any time during the mini-job. A corresponding template is available on the Minijob-Zentrale website. The employer must then report the exemption to the Minijob-Zentrale via the DEÜV reporting procedure using pension insurance contribution group 5.
As of: September 2022