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 is the maximum financing volume of the KfW Corona aid determined?
The eligible funding or financing volume is based on the highest of the following three criteria: a maximum of 25% of 2019 annual turnover, twice the 2019 payroll costs, or the current financing requirement for the next 18 months at most. The highest of these figures forms the upper limit of the loan.
As of: March 2020
How is the age relief amount (Altersentlastungsbetrag) calculated for spouses under joint assessment?
Under joint assessment, the Altersentlastungsbetrag is determined separately for each spouse. Each spouse must individually meet the personal requirements, in particular the age threshold. Any unused amount cannot be transferred to the other spouse.
As of: February 2022
How is the application for Q4 2021 submitted?
Companies that have already applied for Überbrückungshilfe III Plus for July to September 2021 can submit an amendment application for Q4. Companies without a prior application can file an initial application and will receive subsidies for the full funding period from July to December 2021.
As of: October 2021
How is the training allowance (Ausbildungsfreibetrag) calculated for accommodation away from home during part of the year?
The annual amount of €924 is reduced on a pro rata basis: for each month in which the requirements are not met, 1/12 is deducted. Example: if the child moves into a student dormitory on 1 September, four months are eligible, resulting in €924 × 4/12 = €308.
As of: December 2021
How is the term 'occasionally' interpreted within the meaning of Section 24 (2) KSVG?
According to case law, 'occasionally' means 'sometimes', 'here and there' or 'from time to time'. A one-time commission does not meet this definition and therefore does not trigger any liability to pay the artists' social security contribution. Exceeding the EUR 450 threshold is of secondary importance in this context.
As of: August 2022
How will the disability lump-sum allowance be transmitted electronically from 2026?
From 1 January 2026, the authorities that determine or modify a disability assessment must transmit the relevant information electronically to the tax office. Only on this basis will the tax office grant the disability lump-sum allowance (Behinderten-Pauschbetrag). If the allowance is not granted, the cause may lie in missing or incorrect data transmission by the assessing authority.
As of: December 2024
How exactly is the equity subsidy calculated?
The percentage rate of the equity subsidy is multiplied by the monthly Überbrückungshilfe III (Bridging Aid III). Example: With bridging aid of EUR 6,000 per month and a surcharge rate of 35 percent (four months with revenue declines exceeding 50 percent), the equity subsidy amounts to EUR 2,100.
As of: April 2021
How do I apply for or claim the relief amount for single parents (Entlastungsbetrag für Alleinerziehende)?
For employees, the basic amount is automatically applied through wage tax class II (Lohnsteuerklasse II). The increased amount of EUR 240 per additional child requires a separate application to the tax office (Finanzamt). Self-employed individuals and business owners claim the relief amount in the 'Anlage Kind' annex to their income tax return.
As of: February 2023
How is the relief amount for single parents accounted for in subsequent years?
In the years following the separation, the relief amount for single parents is accounted for exclusively through tax class II. A separate entry as a wage tax allowance is then no longer required.
As of: December 2024
How is profit determined for eBay sales from private collections?
If proper records are not kept, the tax office may estimate the profit. In the case before the Cologne Tax Court (FG Köln), an estimate of 20% of revenue was upheld as appropriate. The increase in value of items intended for sale accrues within the business assets once they are contributed to the commercial enterprise upon commencement of sales activity.
As of: May 2015
How is the capitalization factor adjusted under the simplified capitalized earnings method?
Due to the prolonged low-interest-rate environment, the capitalization factor is being reduced from the previous 17.86 to a value between 10 and a maximum of 12.5. This aims to prevent overvaluation of companies for inheritance tax purposes. The factor is multiplied by the sustainable annual earnings to determine the enterprise value.
As of: June 2016
How is the substance damage calculated for an unrepaired vehicle according to the BFH ruling of 21 August 2012?
According to BFH ruling VIII R 33/09, when the repair is not carried out, the decisive value is no longer the vehicle's market value before the accident but the fictitious book value. This is calculated from the original acquisition costs less fictitious depreciation (AfA). The difference between this fictitious book value and the sale proceeds is deductible as Werbungskosten (income-related expenses).
As of: August 2013
How is the deductible portion of estate liabilities calculated under limited tax liability?
The deduction is granted on a pro rata basis, in the ratio of the asset acquisition subject to German inheritance tax to the total asset acquisition. Only this portion of the estate liabilities reduces the tax base.
As of: December 2024
How is the taxable benefit from private use of a company car generally determined?
If an employee also uses a company car for private purposes, the resulting taxable benefit is subject to wage tax. It is calculated either via a properly maintained logbook or, on a flat-rate basis, under the 1% rule, applying 1% of the gross domestic list price per month.
As of: March 2014
How is the relevant degree of disability determined for the tax year?
The degree of disability (Grad der Behinderung, GdB) is determined at the beginning of the calendar year by a medical assessment and applies for the entire year. Even if the GdB changes during the year based on a new assessment, the value established at the start of the year remains decisive for the amount of the lump-sum allowance.
As of: November 2021
How is the tax-free portion of the pension calculated?
The tax-free portion is the difference between the full annual pension amount and the taxable share determined by the table in § 22 Nr. 1 S. 3 a) aa) EStG. The calculation is performed in the calendar year following the start of the pension (§ 22 Nr. 1 S. 4 f. EStG). The resulting tax-free allowance generally remains unchanged for subsequent years.
As of: April 2023
How is the daily average for incidental travel expenses calculated?
The total of documented expenses from the three-month period is divided by the number of days of business travel. Example: 180 euros in expenses over 60 travel days results in a daily average of 3 euros, which can be claimed per travel day as income-related expenses or as a tax-free employer reimbursement.
As of: December 2012
How is the 100 kW (peak) threshold tested per taxpayer?
The test is two-tiered: first on a property-related basis, checking whether the building-related capacity limits are met, then on a person-related basis, checking whether the 100 kW (peak) threshold per taxpayer is observed. Only systems that already fall within the scope of § 3 Nr. 72 EStG are included in the 100 kW threshold; ground-mounted systems and systems exceeding the property-related limits are not counted. The 100 kW threshold is an absolute exemption limit: if it is exceeded, the tax exemption is lost for all systems.
As of: August 2023
How is the 6-year holding period treated in a partially gratuitous business transfer?
Under the unified theory (Einheitstheorie) of the BFH, the following applies: If the partial consideration does not exceed the book value, the transaction is treated as a gratuitous transfer under § 6 Abs. 3 EStG, and the holding period is carried over. If the partial consideration exceeds the book value but remains below the fair market value (gemeiner Wert), hidden reserves are partially realized; the treatment of the prior holding period is disputed.
As of: August 2022
How is the 'Top Steuerberater' award by Focus Money granted?
The award cannot be purchased; it is based on complex professional and organizational assessments that are evaluated scientifically. Each year, Focus Money issues an extensive questionnaire that systematically reviews the capabilities of the firms. The evaluation follows uniform criteria for comparable firm segments.
As of: June 2020
How is the assessment basis for the Altersentlastungsbetrag (old-age relief amount) determined?
The assessment basis comprises gross employment income plus the positive sum of other income (excluding § 19 EStG income and the income types excluded under § 24a sentence 2 nos. 1-5 EStG). Both components are calculated separately: employment income is taken into account in full even if the sum of other income is negative. Income-related expenses or the standard allowance under § 9a no. 1a EStG do not reduce the employment income.
As of: February 2022
How is the lump-sum business expense deduction calculated for midwives and childminders?
Self-employed midwives may deduct a flat rate of up to 25% of their business income as business expenses, capped at EUR 1,535 per year. Self-employed childminders providing full-time care (40 hours/week) may claim EUR 400 per month per child (as of April 2024).
As of: December 2023
How is the energy price allowance paid out to employees?
Employees in an active employment relationship on 01.09.2022 receive the 300 € from their employer together with their wages. The payment is reported on the income tax statement (Lohnsteuerbescheinigung) with the capital letter E. For organizational reasons, the payment may also be made later in 2022. If there was no active employment relationship on 01.09.2022, or in the case of short-term employees, the allowance is only granted via the 2022 income tax return.
As of: July 2022
How is the commuter allowance (Entfernungspauschale) calculated from 2021 onwards?
The first 20 kilometers of the one-way distance are calculated at 30 cents per working day, and 35 cents from the 21st kilometer onwards. Example: With a one-way distance of 30 km and 210 working days, the calculation is 20 km x 210 x €0.30 = €1,260 plus 10 km x 210 x €0.35 = €735, totaling €1,995.
As of: December 2020
How is property tax calculated under the new value-based model?
The value-based federal model considers three factors: the building's year of construction, the standard land value (Bodenrichtwert), and flat-rate net rents. These yield a property value, which is then multiplied by the assessment rate (Steuermesszahl) and the municipal multiplier (Hebesatz).
As of: August 2019
How is the Künstlersozialabgabe (artists' social security contribution) calculated?
The contribution is applied to the total fees paid to self-employed artists and publicists. In 2017, the contribution is calculated by multiplying this fee total by 4.8%. The amounts must be remitted to the Künstlersozialkasse (Artists' Social Security Fund).
As of: August 2016
How is the Künstlersozialversicherung (German Artists' Social Insurance) funded?
Self-employed artists and publicists pay half of their social insurance contributions themselves. The other half is funded by a 20 percent federal subsidy and a 30 percent Künstlersozialabgabe (artists' social security levy) paid by the companies that commercially use their work. The scheme covers statutory health, long-term care, and pension insurance for currently around 180,000 mandatory members.
As of: June 2016
How do I apply for an income tax allowance (Lohnsteuerermäßigung)?
The income tax allowance is applied for using the official form "Antrag auf Lohnsteuerermäßigung," which must be completed and submitted to the competent Finanzamt (tax office). The form is available online via the Form Management System (FMS) of the German Federal Tax Administration. Without such an application, no individual allowances are recorded in the electronic wage tax card (ELStAM).
As of: February 2014
How is the mobility premium calculated?
The basis of assessment is the increased commuter allowance from the 21st kilometer onwards (2021: €0.35/km; 2022: expected €0.38/km), multiplied by the kilometers exceeding this threshold and the number of working days. This product is compared with the difference between the basic tax-free allowance and the taxable income; the lower of the two values forms the basis of assessment. A premium of 14% (corresponding to the entry-level tax rate) is granted on this amount.
As of: March 2022
How is the November aid calculated and what special rule applies to restaurants?
The November aid provides 75% of the average weekly turnover from November 2019 per week of closure, capped at EUR 1 million (higher amounts require EU approval). For restaurants, reimbursement is limited to turnover at the full VAT rate (dine-in); in return, take-away sales are not counted against the subsidy. Other state benefits such as Überbrückungshilfe (bridging aid) or Kurzarbeitergeld (short-time work allowance) are offset against the aid.
As of: November 2020
How is private use calculated under the 1% rule?
Under the flat-rate method, 1% of the vehicle's gross list price is treated as a taxable benefit per month. In addition, for trips between home and the primary place of work, 0.03% of the gross list price per kilometer of distance is applied each month.
As of: December 2023
How do I claim the tax reduction for energy-efficient building renovations?
The relief is claimed through your income tax return by reporting the expenses for the energy-efficient measures to the Finanzamt (tax office). Required documents include a proper invoice from the specialist contractor and the official certificate from the contractor (Fachunternehmerbescheinigung). Payment must be made by non-cash means (e.g., bank transfer).
As of: April 2024
How does the tax office verify the tax-exempt status of a scholarship?
The review is initiated upon application by the scholarship recipient, either at the tax office responsible for the corporate income tax assessment of the scholarship provider or at the recipient's local tax office. The recipient receives a binding certificate confirming the taxable or tax-exempt status. A subsequent re-examination by the tax office is then precluded. However, this procedure is only available for domestic scholarship providers.
As of: July 2022
Wie wird die Umsatzsteuer bei Spar- und Kombimenüs aufgeteilt?
Bei Menüs aus Speisen und Getränken stellt sich die Frage der Entgeltaufteilung für die Umsatzsteuer — die Einordnung und Fundstelle finden Sie im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
How is remuneration determined in childminding?
Remuneration can either be agreed privately with the parents or paid by public bodies (the municipality). With public funding, the public body sets the amount under § 23 SGB VIII. Parents contribute to the costs on a flat-rate, staggered basis pursuant to § 90 Abs. 1 Nr. 3 SGB VIII – depending on income, the number of children eligible for child benefit, and weekly care hours.
As of: July 2021
How is the W-IdNr. assigned?
The W-IdNr. is assigned by the Bundeszentralamt für Steuern (BZSt, Federal Central Tax Office) upon request of the competent tax authority. The tax authority transmits the required identification details to the BZSt. Multiple assignments of the same W-IdNr. are not permitted.
As of: September 2024
How is a leased asset's classification as deemed fixed assets assessed?
Since the asset is not owned by the company, the assessment is made under the fiction that the company were the owner. The decisive factor is the actual operational use, in particular whether the asset permanently serves the business. Classification as fixed assets is especially likely where similar assets are repeatedly leased for ongoing use.
As of: July 2022
How is the appropriate amount of a tax-free scholarship determined?
According to the BFH ruling of 24 February 2015 (VIII R 43/12), the decisive factor is not the BAföG rates but the individual circumstances of the scholarship recipient. Relevant aspects include age, academic background, and typical living expenses. The salary earned immediately before the scholarship may also serve as a reference point.
As of: July 2022
How is the withheld construction withholding tax offset for the service provider?
The remitted construction withholding tax is offset on the service provider's side in a fixed order: first against the wage tax to be withheld, then against prepayments on income or corporate income tax, and finally against corresponding back payments. Any remaining amount that cannot be offset under § 226 AO is refunded to the service provider by the tax office.
As of: May 2023
How has the first place of work been determined since 2014?
Since 2014, the decisive factor is the employer's assignment of the employee under employment or service law (§ 9 Abs. 4 EStG). Unlike under the previous rules in force until 2013, the qualitative focus of the activity is no longer relevant. It is sufficient that the employee performs at least a minor portion of the contractually owed duties at the assigned location.
As of: July 2019
How is the reasonable burden for extraordinary expenses determined under individual assessment?
Under individual assessment (Einzelveranlagung), the reasonable burden is calculated separately for each spouse based on their own total income. This differs from the former separate assessment, where the reasonable burden was determined using the combined total income of both partners.
As of: June 2014
How is the transfer of a charging device from employer to employee taxed?
Non-cash benefits arising from the free or discounted transfer of a charging device for electric or hybrid vehicles may be taxed at a flat rate of 25% by the employee. This regulation applies for a limited period from 01/01/2017 to 12/31/2020.
As of: May 2016
How is a collective item (Sammelposten) depreciated for tax purposes?
Several assets are combined into a Sammelposten and depreciated uniformly over a fixed period, regardless of the actual useful life of each individual asset. To date, this period is five years; it is set to be shortened to three years.
As of: December 2023
How is a home office shared by spouses treated for tax purposes?
The requirements for a home office must be examined separately for each user. If both meet them, each spouse may deduct the expenses they have economically borne. For payments from a joint account, the respective debtor can claim the costs – for example, if the electricity bill is in the wife's name, she may deduct those expenses.
As of: September 2023
Wie wird eine Photovoltaikanlage einkommensteuerlich behandelt?
Kleine Photovoltaikanlagen sind einkommensteuerlich begünstigt. Die Infografik finden Sie im Merkblatt-Verzeichnis unter "Photovoltaikanlagen Einkommensteuer". (Quelle: Deubner Verlag)
How is December rent paid on 09.01. allocated for tax purposes?
Since rent qualifies as a recurring income item and the payment is made within the 10-day window after year-end, the exception to the cash-in/cash-out principle applies. A further requirement is that the rent was due in the prior year. The rental income is therefore allocated to the assessment period of its economic origin, i.e. the prior year (December).
As of: February 2022
How do depreciation deductions affect a speculative gain?
A speculative gain is increased by the depreciation (AfA) previously claimed. As a result, a taxable gain can arise even if the sale price merely equals the original acquisition costs. This effect is particularly important for rented properties sold within the ten-year speculation period.
As of: January 2021
How do down payments or advance payments affect the applicable VAT rate?
Down payments and advance payments are irrelevant for determining the correct VAT rate. The decisive factor is always the time at which the service is actually rendered. If a down payment was invoiced at the previous VAT rate but the service is performed during a period subject to a different rate, the final invoice must apply the VAT rate valid at the time the service is rendered.
As of: December 2020
How do employer subsidies affect the commuter allowance (Entfernungspauschale)?
Tax-free commuting subsidies from the employer reduce the deductible Entfernungspauschale. As work-related expenses (Werbungskosten), the employee can only claim the remaining amount after deducting the reimbursement.
As of: January 2022
How do loss carryforwards of a spouse affect restructuring income in the case of joint assessment?
For jointly assessed spouses, the current amounts and loss carryforwards of the other spouse must be included in the reduction. This rule applies analogously in cases of discharge of residual debt.
As of: December 2024