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 can companies apply for the BAFF?
Companies based in Bocholt can apply through the Bündnis für Familie in Bocholt e.V. Details on participation and application procedures are available on the association's website. Taking part is worthwhile to showcase family friendliness as a key location factor.
As of: October 2013
What is the statutory basic notice period under § 622 Abs. 1 BGB?
The basic notice period is four weeks, effective either on the 15th or on the last day of a calendar month. This applies as long as the length of service does not trigger an extended notice period under § 622 Abs. 2 BGB.
As of: December 2014
How long does registration on the ELSTER online portal take?
The registration process on the ELSTER online portal can take up to 14 days. For this reason, registration should be initiated well before the first submission.
As of: October 2012
How long is the transition period to full taxation of pensions?
The transition from partial to full downstream taxation lasts 35 years. It began in 2005, so the taxable portion of the pension gradually increases depending on the year of retirement.
As of: November 2014
How long does the reduced VAT rate of 7% on restaurant meals apply?
The reduction of the VAT rate to 7% on food served in the hospitality sector is limited until 30 June 2021. From 1 July 2021, the regular tax rate will generally apply again. The time limit was deliberately chosen, as the measure is intended as a temporary stimulus following the coronavirus crisis.
As of: May 2020
How long does the increased commuter allowance apply?
The increase in the distance allowance from the 21st kilometer onwards is limited in time and applies until the end of 2026. After that, new legislation will be required if the increased allowance is to be continued.
As of: December 2020
How long does the reduced VAT rate of 7% on restaurant meals apply?
The reduced VAT rate of 7% on food served in the restaurant sector is limited to the period from 1 July 2020 to 30 June 2021. It is intended as start-up support for the post-crisis period, enabling restaurant businesses to quickly return to operating on their own again.
As of: May 2020
How long is the correction period for a voluntary self-disclosure under the planned tightening of the rules?
Previously, taxpayers only had to file corrected returns for the past 5 years in cases of simple tax evasion; the 10-year period applied only to particularly serious cases involving amounts of EUR 50,000 or more. Under the planned new rules, the correction obligation will be uniformly extended to 10 years in all cases. The taxpayer must therefore declare and pay the outstanding taxes for the past 10 years.
As of: July 2014
How long is the VAT reduction on food limited to?
The reduction to 7% applies for a period of one year, namely from 1 July 2020 to 30 June 2021. The time limit was politically debated, and a longer period was demanded in some quarters; however, only this one-year period was initially adopted.
As of: May 2020
What is the tax depreciation period for computer hardware and software?
The useful life for computer hardware and software has been reduced from three years to one year. This means the full acquisition cost can be deducted as an expense in the year of purchase. The change is based on an adjustment under § 7 EStG to reflect rapid technological progress.
As of: March 2021
How long is an ISO 9001 certificate valid?
An ISO 9001 certificate is generally valid for three years. During this period, annual surveillance audits are conducted to verify ongoing compliance with the standard. Before the three years expire, a full recertification audit is required.
As of: October 2016
How long is an exemption certificate (Freistellungsbescheinigung) valid, and how is it verified?
An exemption certificate is generally valid for three years from the date of issue; a follow-up certificate should be applied for at the Finanzamt in good time before expiry. The recipient of the service can verify its validity online via the Bundeszentralamt für Steuern or have it confirmed by phone with the contractor's Finanzamt. If no valid certificate is available, the tax deduction must be applied without exception.
As of: May 2023
Wie lange muss eine erste Berufsausbildung für das Kindergeld dauern?
Für den Kindergeldanspruch kommt es auf Dauer und Ausgestaltung der Erstausbildung an — die Kriterien finden Sie im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
How long must records on the use of Corona emergency aid be retained?
All records substantiating the use of the emergency aid must be retained for 10 years. The proof itself is provided via an official form, which recipients will receive in good time together with completion instructions.
As of: May 2020
How long must electronic bank statements be retained?
As accounting documents, electronic bank statements are subject to the statutory retention period of 10 years pursuant to § 147 AO. They must be retained in electronic form so that the data remain legible and analyzable at all times.
As of: September 2014
How long are Corona special payments of up to EUR 1,500 tax-free?
The tax exemption for Corona allowances and support payments of up to EUR 1,500 has been extended until 30 June 2021. However, this is merely an extension of the deadline – the maximum amount of EUR 1,500 cannot be paid out tax-free a second time; employers simply have more time to process the tax-privileged payment.
As of: January 2021
How long are electric vehicles exempt from motor vehicle tax?
Buyers of a new, fully electric vehicle are exempt from motor vehicle tax (Kfz-Steuer) for ten years from the date of initial registration. This rule is intended to create incentives for switching to electric mobility.
As of: May 2016
How long will the statute of limitations for prosecuting tax evasion be in the future?
According to the BMF's ministerial draft, the statute of limitations for prosecuting tax evasion is to be extended to ten years in all cases. This will therefore no longer apply only to particularly serious cases, but uniformly to all forms of tax evasion.
As of: November 2014
By how long has the filing deadline for the income tax return been extended?
The standard filing deadline has been extended by two months. Instead of the previous deadline of 31 May of the following year, income tax returns must now be submitted by 31 July of the following year.
As of: January 2019
How can depreciation options be secured when acquiring a contracted physician's practice?
Buyers should consider acquiring only the practice goodwill initially and relocating the practice seat at a later stage. This way, the economic benefit of the licensing approval flows into the depreciable practice goodwill instead of being lost as a non-depreciable item.
As of: May 2017
How can tax-free allowances be used multiple times through lifetime gifts?
Personal tax-free allowances can be claimed again every ten years. For substantial assets, it is therefore worthwhile to transfer portions of the estate early in order to use the allowance multiple times. An equal distribution of assets between spouses is also advisable so that both partners' allowances can be utilised optimally.
As of: January 2022
What is the official website of the Transparenzregister?
The official website of the Transparenzregister (transparency register) under the German Anti-Money Laundering Act is www.transparenzregister.de. It is operated by Bundesanzeiger Verlag GmbH as an entrusted body, with supervision provided by the Federal Office of Administration (Bundesverwaltungsamt).
As of: January 2020
How can commercial infection of a medical group practice be avoided?
Commercial infection can be avoided by establishing a sister partnership with identical ownership. This separate entity handles the commercial activities, such as the dispensing of medications and medical aids. The actual group practice then remains exclusively engaged in professional activities and retains its tax classification as a freelance practice.
As of: March 2017
How does the Focus Money Top Tax Advisor ranking work?
Focus Money invites around 100,000 tax advisory firms in Germany to participate, with just under 95,000 experts voluntarily taking part in the assessment. Participants must provide details on firm structure and continuing education, and answer technical examination questions. Each year, approximately 300 firms are recognized as Top Steuerberater (German Certified Tax Advisor).
As of: April 2018
How is a change of legal form treated for tax purposes?
The conversion qualifies as a disposal under §§ 20 ff. UmwStG: the partnership is contributed, and in return the partners receive shares in the corporation. A tax-neutral contribution is only possible if an entire business, a business unit, or a co-entrepreneur interest is transferred together with all functionally essential operating assets. Going forward, profits must also be determined via a balance sheet rather than by cash-basis accounting (Einnahmenüberschussrechnung).
As of: July 2021
How does the rating process work methodically?
The rating process is typically structured in several steps: classifying insolvency risks into risk categories, representing these risks through key performance indicators, linking the indicators into a coherent system, forming a risk assessment by evaluating the indicator values, and finally developing appropriate measures based on the outcome.
As of: August 2019
How is a coercive fine imposed in connection with the property tax assessment return?
A coercive fine is imposed in two stages: first, the tax authority threatens the fine and sets a deadline. Only after this deadline has expired without compliance is the fine actually imposed. If the return is filed after the threat but before the fine is imposed, the fine is waived entirely. The minimum amount is EUR 200.
As of: February 2023
How does KfW's risk assessment work depending on loan size?
For loans up to EUR 3 million, KfW's risk assessment is waived entirely and handled by the financing partner. For amounts above EUR 3 million up to EUR 10 million, a simplified fast-track review is performed, limited to a rating. For loans exceeding EUR 10 million, an extended risk assessment with more detailed documentation applies.
As of: March 2020
How does recertification under DIN ISO 9001:2015 work?
During recertification, an external auditor reviews the existing management system for compliance with the standard's requirements. The audit covers processes, documentation, responsibilities and continuous improvement. Only after successful completion is the certificate renewed for another three years.
As of: October 2016
How must the ECJ ruling be implemented into German law?
The German legislator is required to transpose the ECJ's requirements into national law. In doing so, the ECJ has expressly granted Member States discretion to define specific arrangements and to appropriately reflect the particularities of the relevant sector and company size.
As of: August 2019
How must rent be calculated for charitable (wohngemeinnützige) residential letting?
The rent must be permanently below the standard market rent. This is reviewed only at the start of the tenancy and upon rent increases. Alternatively, it is sufficient if the rent merely covers the actual expenses, including regular depreciation (AfA), without any profit margin.
As of: December 2024
How must the electronic wage tax certificate be transmitted technically?
The data transmission must be authenticated. The required certificate has to be requested once by the data transmitter via the ElsterOnline portal. Without prior authentication, electronic transmission is not possible.
As of: September 2014
How must hoteliers allocate the price for package offers?
Hoteliers must split the package price into an accommodation portion (7% VAT) and a breakfast portion (19% VAT). This allocation is required because the legislator has expressly excluded breakfast services from the reduced VAT rate.
As of: December 2013
How must maintenance payments be paid from 2025 onwards to be tax-deductible?
From assessment period 2025, cash contributions are only recognized as maintenance payments for tax purposes if they are made by bank transfer to the recipient's account. Other payment methods, such as cash handovers, result in the loss of the deduction.
As of: December 2024
How must electronic invoices be archived?
Electronic invoices must be documented, stored electronically, and protected against destruction. Storage must be on a medium that does not allow subsequent modification. Receipt, conversion, processing, and archiving must be logged, and the file must be retrievable at any time during a tax audit.
As of: November 2012
Wie nutze ich Investitionsabzugsbetrag und Sonderabschreibung?
Mit Investitionsabzugsbetrag und Sonderabschreibung lassen sich Investitionen steuerlich vorziehen. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Investitionsabzugsbetrag Sonderabschreibung". (Quelle: Deubner Verlag)
How often must entries in the transparency register be reviewed and updated?
Entries must be reviewed for completeness and accuracy on an ongoing basis, but at least once a year. Changes regarding the beneficial owners—such as altered shareholdings, changes of residence, or name changes—must be reported without delay. The review and identification of beneficial owners should be documented, and the documentation retained.
As of: August 2021
How often are medium-sized and large businesses audited on a statistical average?
On a statistical average, medium-sized businesses are subject to a tax audit only every 15.2 years. Large businesses, by contrast, are audited far more frequently, on a cycle of approximately 4.6 years. This frequency reflects the significantly higher tax revenue and risk potential associated with large enterprises.
As of: August 2013
How often will the interest rate under § 238 AO be reviewed in the future?
Going forward, the interest rate will be reviewed every three years with effect for subsequent interest periods. The benchmark is the base rate under § 247 BGB as of January 1 of a given year. An adjustment will be made if the base rate deviates by more than one percent from the applicable interest rate under § 238 Abs. 1 AO.
As of: May 2022
How often is the statutory minimum wage reviewed and adjusted?
The statutory minimum wage is reviewed and reset every two years by the Minimum Wage Commission (Mindestlohnkommission). The first adjustment after its introduction took effect on 01/01/2017.
As of: June 2016
Wie ordnet die Finanzverwaltung Kryptowährungen steuerlich ein?
Die Finanzverwaltung hat sich zur Besteuerung von Kryptowährungen geäußert — die Kernaussagen und Fundstelle finden Sie im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
How do the Netherlands regulate the reporting obligation, and where lies its pragmatic approach?
The Netherlands requires a general preliminary review by the intermediary: the intermediary independently assesses whether an arrangement constitutes a potentially aggressive tax arrangement within the meaning of the Directive. This prefilter allows for a pragmatic handling of the hallmarks and reflects the spirit and purpose of the Directive, without overburdening advisors and taxpayers with blanket reporting.
As of: July 2019
How should advance payments received net before 14 February 2014 be treated?
If the service is performed after 14 February 2014, the advance payments must generally be corrected in the month of completion – both for the supplier and the recipient. Alternatively, the entire VAT amount can be claimed in the final invoice. Under the non-objection rule, settlement under the previous legal framework remains possible; in that case, a corresponding note must be included on the final invoice.
As of: June 2014
How should legacy cases with service commencement before 14 February 2014 and completion thereafter be treated?
Since a service is only deemed rendered upon completion, the new case law would in principle apply. However, the BMF letter dated 08 May 2014 provides a non-objection rule: if both entrepreneurs have agreed to apply § 13b UStG under the previous legal framework, the invoice does not need to be corrected.
As of: June 2014
How are advance payment invoices treated for VAT purposes when the service is rendered after 31.12.2020?
If advance payments were invoiced between 01.07.2020 and 31.12.2020 at 16% or 5%, but the service was not rendered until after 31.12.2020, the increased rates of 19% or 7% apply to the entire service. The correction must be made no later than in the final invoice. Alternatively, the higher tax rate may already be shown in the advance payment invoice, eliminating the need for a subsequent correction.
As of: December 2020
How are bonus payments from health insurers treated for income tax purposes?
The decisive factor is whether the bonus relates to benefits of the basic health insurance. If so (e.g. preventive care, early detection), it qualifies as a contribution refund and reduces the deductible special expenses under § 10 Abs. 1 Nr. 3a EStG. Bonus payments for benefits outside basic coverage (e.g. alternative medicine, professional dental cleaning) or for health-conscious behaviour (e.g. gym membership) are not treated as contribution refunds, provided the insured person has borne the costs personally.
As of: March 2023
How are travel costs deductible for only occasional trips to a rental property?
If rental properties are visited only at intervals for inspection purposes, viewings, meter readings, or meetings with tradespeople, the property does not constitute the center of the rental activity. In these typical cases, travel costs may still be claimed at €0.30 per kilometer actually driven (round trip).
As of: April 2016
How are travel expenses to a rental property generally deductible as income-related expenses?
Travel expenses to a rental property are generally deductible as income-related expenses (Werbungskosten) under income from renting and leasing, based on the actual kilometres driven at €0.30 per kilometre. This applies to both directions (outbound and return trip). The requirement is that the trips serve the purpose of generating rental income.
As of: April 2016
How must tips be recorded in an open cash register?
With an open cash register and itemized records, tips must be documented on the original receipt. Without itemized records, the cash balance including tips is counted and documented in the cash report; individual tips should be noted separately.
As of: May 2021
How must current assets be written down in the event of impairment?
Under German commercial law, the strict lower-of-cost-or-market principle requires an extraordinary write-down on current assets in every case of impairment, regardless of whether it is permanent. For tax purposes, a write-down to going-concern value (Teilwertabschreibung) is only permissible in the event of a permanent impairment, and even then only as an option. Without a permanent impairment, no Teilwertabschreibung may be recognized for tax purposes.
As of: April 2021