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 does the development status of the property affect real estate transfer tax?
If the property is already developed at the time the purchase contract is concluded, only the developed property can be the subject of the contract, and the development costs are subject to real estate transfer tax. If it is not yet developed, civil law standards must be applied to determine whether the developed property is the subject of the transfer obligation.
As of: December 2022
How does the progression clause affect wage replacement benefits?
Under § 32b Abs. 1 Nr. 1a EStG, wage replacement benefits are themselves tax-free but increase the tax rate applied to other taxable income. A fictitious taxable income including the wage replacement benefits is calculated, and the resulting average tax rate is then applied only to the regular taxable income. This regularly leads to additional tax payments.
As of: May 2021
How does the 3-year period affect income-related expenses already deducted?
All repair and modernisation expenses within the 3-year period are added together. If the 15% threshold is only exceeded due to later measures, amounts previously deducted as income-related expenses must be reclassified retroactively and allocated via the building depreciation. This can result in amended tax assessments.
As of: June 2023
How does the EUR 44 tax-free threshold affect benefits in kind granted to employees?
Benefits in kind granted to employees remain tax-free only if their total monthly value does not exceed the EUR 44 threshold under § 8 Abs. 2 S. 11 EStG. If this threshold is exceeded — for example, due to multiple benefits within the same month — all benefits in kind must be subject to regular wage tax.
As of: August 2016
How does the Energiepreispauschale (energy price lump sum) affect business and professional income?
For taxpayers earning exclusively profit-based income under § 13, § 15 or § 18 EStG, the Energiepreispauschale reduces the income tax prepayment for Q3 2022 (due 10 September 2022). If the prepayment is less than €300, it is reduced to €0, and the remaining amount is offset or paid out as part of the 2022 income tax assessment.
As of: July 2022
How does the amount of the capital gain affect the tax allowance?
The allowance generally amounts to EUR 45,000, but is reduced by the amount by which the capital gain exceeds EUR 136,000. With a capital gain of EUR 125,000, the allowance is therefore available in full, provided the personal requirements are met.
As of: November 2022
How does the new regulation affect the BFH case law on company events?
The Bundesfinanzhof had ruled that costs for venue rentals, event agencies and similar overhead expenses are not to be included in the tax-free threshold. However, the ministerial draft bill expressly excludes this employee-friendly case law from 2015 onwards.
As of: October 2014
How does the object-related nature of the home office deduction cap affect taxpayers?
Object-relatedness means that the maximum amount of EUR 1,250 per taxpayer per year is granted only once, regardless of whether several home offices are used. However, it can also work in the taxpayer's favor: according to the BFH, the full, unreduced maximum amount applies even if the home office is used for only a few months of the year.
As of: April 2015
How does the reintroduction of declining-balance depreciation affect § 7a EStG?
§ 7a EStG, which governs special depreciation rules, has been adapted to the reintroduced declining-balance depreciation for buildings. This ensures that, after a special depreciation period ends, further depreciation can also be calculated based on the residual value and the applicable declining-balance rate.
As of: December 2024
How does the day-by-day rental of individual rooms affect the tax exemption when selling a home?
According to the BFH ruling of 19.07.2022 (IX R 20/21), the day-by-day rental of individual rooms to third parties excludes those rooms from being used for personal residential purposes. The capital gain must therefore be allocated: the portion attributable to the rented rooms is taxable as other income, while the remaining owner-occupied area remains tax-free.
As of: July 2023
How does a reservation of subsequent review in the tax assessment affect the home office deduction?
If the entire tax assessment is issued subject to subsequent review (§ 164 AO), it can be amended in the taxpayer's favor at any time. Expenses for a home office can therefore be claimed retroactively by requesting an amendment of the assessment. Procedurally, the taxpayer is on the safe side in this case.
As of: July 2010
How does a trustee shareholding affect identity of ownership?
A shareholding held as a trustee is generally harmful to the identity of ownership, even if the trustee is not a co-entrepreneur. An exception applies to zero-percent shareholdings, for example a general partner GmbH without a capital share.
As of: December 2024
How does a gratuitous transfer of a business affect the 6-year holding period?
In gratuitous transfers such as inheritance, anticipated succession, or gift, the predecessor's holding period is credited to the legal successor. In the case of inheritance (universal succession), this happens automatically. For individual succession, the prerequisite is that the legal successor continues the book values; if the fair market value is applied, the hidden reserves are disclosed and the § 6b claim ceases to apply.
As of: August 2022
How does anticipated succession affect the calculation of capital gains?
In the case of a gratuitous acquisition, pursuant to § 23 Abs. 1 S. 3 EStG, the acquisition or transfer into private assets by the predecessor is attributed to the individual legal successor. The heir or donee therefore steps into the tax position of the transferor. Accordingly, the predecessor's withdrawal date and withdrawal value are decisive.
As of: July 2022
How was short-time work allowance (Kurzarbeitergeld) increased in stages from 22 April 2020?
If working hours are reduced by at least 50 percent, the short-time work allowance for employees without children rises to 70 percent of the lost net wage from the 4th month of receipt and to 80 percent from the 7th month. For employees with children, the benefit increases to 77 percent from the 4th month and 87 percent from the 7th month. These increases applied until 31 December 2020 at the latest.
As of: March 2020
How was the tax loss carryback expanded in the economic stimulus package?
The tax loss carryback is statutorily expanded for 2020 and 2021 to a maximum of EUR 5 million, or EUR 10 million for joint assessment. In addition, a flat-rate loss carryback from 2020 to 2019 is permitted: 15% of the balance of the relevant business income or income from rental and leasing that formed the basis for the 2019 advance tax payments, capped at EUR 1 million (or EUR 2 million for joint assessment).
As of: June 2020
How was the EEG surcharge relieved by the stimulus package?
Starting in 2021, the EEG surcharge (renewable energy levy) was to be reduced through subsidies from the federal budget. This eased electricity costs for both consumers and businesses.
As of: June 2020
How did the Second Corona Tax Assistance Act improve the crediting of trade tax?
The reduction factor for crediting trade tax against income tax was increased from 3.8 to 4.0 times the trade tax base amount. As a result, sole proprietors and partners in partnerships can be fully relieved of trade tax up to a municipal multiplier (Hebesatz) of 400%. The rule applies from assessment period 2020 onward without time limit and only to natural persons.
As of: December 2020
How were the upholstery works on a seating group performed in the workshop assessed for tax purposes?
The costs of around EUR 2,600 for renewing the upholstery and cover of a seating group, which the interior decorator had picked up and restored in his workshop, were not recognised as a household-related tradesperson service. The decisive factor was that the work was carried out outside the household.
As of: August 2016
How were food items treated for VAT purposes before 1 July 2020?
Before 1 July 2020, food consumed on the premises – such as in a restaurant, café or bar – was subject to the standard VAT rate of 19%. Food for takeaway or home delivery, on the other hand, was generally taxed at the reduced rate of 7%.
As of: May 2020
How were municipalities supported under the 2020 stimulus package?
The federal government increased its share of housing costs for those in need and covered half of the municipalities' trade tax shortfalls. In addition, public transport and the healthcare sector received financial support.
As of: June 2020
How do shareholders' income types change after exercising the option?
Co-entrepreneurs become shareholders of the opting corporation. Special remuneration is then treated as wage-tax liable employment income, loan interest and profit distributions are subject to capital gains tax as investment income (§ 20 EStG), and the provision of assets to the company may result in rental and leasing income (§ 21 EStG).
As of: July 2021
How do the investment deduction allowances change under the 2020 Annual Tax Act?
The investment deduction allowance (Investitionsabzugsbetrag) is increased from 40% to 50% of the expected acquisition or production costs. In addition, a uniform profit threshold of EUR 200,000 now applies as a prerequisite across all categories of income. The new rules apply for the first time to investment deduction allowances and special depreciation in fiscal years ending after 31 December 2019.
As of: January 2021
How does the new Medical Licensing Regulation change the structure of the Medical Examination?
The written part of the former Second Section of the Medical Examination will be moved, with unchanged content, to before the Practical Year. The examination parts will be restructured into independent sections. After the Practical Year, students will complete the oral-practical part as the new Third Section of the Medical Examination.
As of: December 2013
How does the Third Corona Tax Relief Act change the tax loss carryback?
The maximum loss carryback is raised from EUR 1 million to EUR 10 million. For jointly assessed taxpayers, the limit increases from EUR 2 million to EUR 20 million. This is intended to create additional investment incentives for businesses that incurred substantial losses during the pandemic.
As of: March 2021
How is the total useful life for residential properties changing under the Bewertungsgesetz?
The total useful life is being increased from 70 to 80 years for certain types of buildings. This applies to single- and two-family homes, rental residential properties, apartment buildings, condominium ownership, as well as mixed-use properties and residential buildings with mixed use. The longer useful life increases the assessed value.
As of: November 2022
How will the commuter allowance change from 2021?
From 2021, the rate remains at 30 cents per kilometre for the first 20 kilometres of distance. From the 21st kilometre onwards, 35 cents per kilometre of one-way commute can be claimed as work-related expenses (Werbungskosten).
As of: December 2020
Is the BAFA Corona consulting cost subsidy still being granted?
No, the special Corona consulting cost subsidy was suspended as of 15 May 2020. BAFA has instructed the DIHK coordination office to stop issuing the preliminary approval statements required for engagement and billing. The reasons were the unexpectedly high volume of applications and increased susceptibility to fraud.
As of: March 2020
Is the relief amount for single parents granted in full if the requirements cease to apply during the year?
No, the relief amount is granted only on a pro rata basis. For each full calendar month in which the requirements of § 24b Abs. 1 EStG are not met, the amount is reduced by one twelfth. In addition, only one of the two parents can claim the relief amount.
As of: December 2021
Is the EUR 1,250 cap for a home office granted per person or per property?
Under the BFH rulings of 15 December 2016 (VI R 53/12 and VI R 86/13), the cap of EUR 1,250 is applied on a per-person basis. If several taxpayers (e.g. spouses) share a home office, each may claim the full cap. With this, the BFH revised its previous property-based case law in favor of taxpayers.
As of: March 2017
Is the child bonus offset against social benefits such as SGB II, child supplement, or housing benefit?
No, the 2021 child bonus is not counted as income for benefits under SGB II, the child supplement (Kinderzuschlag), or housing benefit (Wohngeld). As a result, it provides additional support, particularly for families on low incomes.
As of: March 2021
Wird der Körperschaftsteuersatz gesenkt?
Für Kapitalgesellschaften ist eine schrittweise Absenkung des Körperschaftsteuersatzes geplant — Zeitplan und Fundstelle im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Wird der Übungsleiterfreibetrag erhöht?
Der Übungsleiterfreibetrag wird angehoben — die neuen Beträge und die Fundstelle finden Sie im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Does the 6-year holding period continue in the case of a fully paid business acquisition?
No. In a fully paid business sale, the hidden reserves of the fixed assets are realized, and the prior holding period of the seller is not transferred to the buyer. The buyer must hold the assets in their business for at least 6 years again in order to claim the § 6b EStG benefit.
As of: August 2022
Is the BAFA consulting subsidy for businesses affected by Corona still available?
No, the special Corona consulting subsidy from BAFA was discontinued early. The funding pool was fully exhausted after less than two months of program runtime, and no further funds will be made available for this module.
As of: June 2020
Is the energy tax exemption also granted for retrofitted truck tanks?
This issue is currently unresolved under European law and is the subject of preliminary ruling proceedings before the ECJ (referral by FG Düsseldorf, Az. 4 K 3691/12 VE). The German customs administration denies the exemption for tanks not installed as standard equipment. However, FG Düsseldorf considers it justifiable to include tanks retrofitted by authorized dealers, since vehicle manufacturing often involves several companies.
As of: July 2013
Wird die Forschungszulage ausgeweitet?
Die Forschungszulage wird ausgeweitet — was konkret begünstigt wird, lesen Sie mit Fundstelle im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Is the obligation to file for insolvency suspended due to the coronavirus crisis?
Yes, the Federal Ministry of Justice and Consumer Protection is preparing legislation to suspend the obligation to file for insolvency until 30 September 2020. The aim is to protect companies that have run into financial difficulties as a result of the coronavirus pandemic.
As of: March 2020
Is a contractual purchase price allocation between real estate and furniture recognized for tax purposes?
A purchase price allocation made in the contract is generally also binding for tax purposes, provided it is not a sham transaction or an abusive arrangement. Problems mainly arise when the allocation reflects an increase in value of the furnishings, since furniture typically depreciates. The seller should be able to plausibly demonstrate why the allocation is economically justified.
As of: January 2021
Is a separate final statement prepared for each funding program?
Yes. Although the statements are submitted as a package, the review body issues a separate final statement for each funding program within a package. The package solution is used solely for joint recording and processing.
As of: May 2022
Is VAT wrongly shown in a credit note (Gutschrift) owed to the tax authorities?
Yes. Under the new rules, a person owes incorrectly shown VAT even when the tax is stated in a previously agreed credit note (Gutschrift). This closes a regulatory gap created by BFH case law, under which credit notes without an underlying supply did not previously trigger a tax liability. The change applies from the day after its promulgation.
As of: December 2024
Does an invoice correction have retroactive effect on the input VAT deduction?
Yes. According to the ECJ ruling of 15 September 2016 (C-518/14), a subsequently corrected invoice entitles the recipient to input VAT deduction already at the time the original invoice was issued. This eliminates the previously common input VAT reclaims for the audit period, provided that the formal defects of the invoice are subsequently remedied.
As of: April 2017
Does the child bonus affect the parents' tax assessment?
Yes, the child bonus is taken into account within the family benefits equalisation (Familienleistungsausgleich). It is included in the comparative assessment (Günstigerprüfung) between child benefit (Kindergeld) and the child tax allowance (Kinderfreibetrag), so the tax relief may be reduced proportionally depending on the parents' total income.
As of: March 2021
Does a delayed commissioning of a PV system affect the feed-in tariff?
No, the otherwise customary monthly degression of the feed-in tariff is suspended until early 2024. As a result, the new tariff rates remain stable until the end of 2023, ensuring that global supply shortages and related delays in system construction do not lead to a reduced tariff.
As of: September 2022
Where are vehicle registrations, re-registrations, and changes of ownership processed after the reform?
Vehicle registrations, re-registrations, changes of ownership, and decommissioning continue to be handled by the local vehicle registration authorities (Zulassungsbehörden). This function is not affected by the restructuring of motor vehicle tax administration. Only the tax-related processing has been transferred to the customs administration (Zollverwaltung).
As of: January 2014
Where can Bocholt-based companies find consolidated information on Corona-related economic aid?
The Wirtschaftsförderung Borken (WFG) provides detailed information on support measures and programs for businesses during the Corona crisis. In addition, the City of Bocholt offers a dedicated section on its website covering business topics during the Corona crisis.
As of: March 2020
Where can people in need of care find information on medical services in nursing homes?
Long-term care insurance funds are required to provide information on medical care, cooperation agreements, and pharmacy arrangements in a clear, well-structured, and comparable manner. This information is published free of charge online and in other suitable formats, enabling a direct comparison between facilities.
As of: December 2013
What is the de minimis threshold for commercial infection in joint medical practices?
Commercial infection occurs only if commercial net revenues exceed both 3 percent of total net revenues and the absolute amount of EUR 24,500 per year. Both thresholds must be exceeded cumulatively. Below this de minimis limit, the joint practice retains its classification as a freelance partnership.
As of: March 2017
Where is the primary place of work for pilots and flight attendants?
Flight crew members who are permanently assigned to an airport under their employment contract and perform a small portion of their contractual duties there (e.g., pre- and post-flight preparation) have their primary place of work at that airport. The fact that they are predominantly deployed in international air traffic is irrelevant. Even a large area such as an airport can qualify as a primary place of work.
As of: July 2019
Where is the VAT place of supply for streaming services located as of 2025?
For streaming services provided to non-taxable persons, the place of supply is where the recipient is established or has their domicile or habitual residence. For admission rights granted to taxable persons for their business with virtual participation, the place of supply is the registered office of the receiving company. The new rules apply from 1 January 2025 and replace the previous link to the event location.
As of: December 2024