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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2304 questions · Page 5 / 47
Does the bank transfer requirement also apply to a Minijob employee acting as a childcare provider?
Yes. The law makes no distinction in the documentation of childcare costs based on whether the services are provided under a marginal employment relationship (Minijob) or on another basis. Even for a Minijob, the remuneration must be transferred to the caregiver's bank account for the deduction to be allowed.
As of: June 2015
Does the German Protection Against Unfair Dismissal Act apply to dental practices with fewer than 10 employees?
The German Protection Against Unfair Dismissal Act (Kündigungsschutzgesetz, KSchG) generally does not apply to small businesses with up to ten employees. However, case law establishes a minimum level of dismissal protection derived from general principles of civil law. Employees are therefore not entirely without protection, even if the business falls below this threshold.
As of: March 2016
Does the ruling on the real estate tax also apply to the new German federal states?
Formally, the ruling initially applies only to the western federal states, as the court was presented exclusively with cases from these states. However, since the situation in the new federal states is fundamentally comparable, it can be assumed that all German property owners will ultimately be affected.
As of: April 2018
Does the €3,000 tax-free allowance apply per employment relationship or per employee?
The €3,000 allowance can generally be claimed separately for each employment relationship, including multiple concurrent jobs with different employers. The employer is not required to verify whether the employee has already received the IAP from a previous employment relationship. However, for consecutive employment relationships with the same employer, the maximum amount applies only once.
As of: January 2023
Does the EUR 1,250 cap also apply in the case of relocation or a second household for work?
Yes, the cap is granted only once per year, even in cases of relocation or a second household for work (doppelte Haushaltsführung). The legislator lifted the deduction limit solely where the home office constitutes the centre of the entire professional activity. Other constellations neither increase the deductible amount nor allow it to be claimed multiple times.
As of: April 2015
Does the standard VAT rate apply to hotel parking spaces even without a separate charge?
Yes. According to the BFH, providing parking spaces is subject to 19% VAT even if no separate fee is charged to the guest. In this case, a calculated portion must be extracted from the overnight rate and taxed at the standard rate.
As of: July 2016
Does the special expense deduction also apply to contributions withheld directly from the child's wages?
Generally yes, provided the parents have a maintenance obligation and actually reimburse the child for the withheld contributions. If the contributions are not refunded to the child in cash, only the child may claim the deduction in their own tax return.
As of: September 2019
Does the special protection against dismissal for severely disabled employees also apply after a transfer of business?
Yes, the special protection against dismissal under SGB IX transfers to the acquirer in the event of a transfer of business pursuant to § 613a BGB. The new employer assumes all rights and obligations of the employment relationship, including the special protection against dismissal for severely disabled employees.
As of: June 2009
Does the heirs' claim to compensation for unused leave also apply against private employers?
Yes. The ECJ clarified that heirs may rely directly on EU law, regardless of whether the employer is a public or private one. If national law excludes such compensation, EU law takes precedence.
As of: November 2018
Does insurance coverage also apply to the journey to and from the company party?
Yes, the employee's journey to and from the company Christmas party is generally covered by statutory accident insurance. The prerequisite is that the event qualifies as an official company function.
As of: December 2016
Does the elimination of the apportionment requirement also apply outside of agriculture?
Yes, the principles can be transferred to other letting and leasing arrangements, for example to buildings with freight elevators or similar operating equipment. VAT-exempt letting is therefore possible even when operating equipment is leased along with the property, provided it qualifies as an ancillary service to the provision of the building.
As of: September 2023
Does the reduced VAT rate also apply to beverages in the hospitality sector?
No, the temporary reduction to 7% applies exclusively to food. Beverages remain subject to the standard VAT rate of 19%. Restaurant operators must therefore clearly separate food and beverage sales when issuing invoices.
As of: May 2020
Does the reduced VAT rate apply to a 'bed and breakfast' package?
No. Even with a 'bed and breakfast' package, the breakfast portion must be taxed at 19%. The BFH ruled on 24.04.2013 (XI R 3/11) that breakfast services do not directly serve the accommodation and are therefore not subject to the reduced VAT rate.
As of: December 2013
Will the reduced VAT rate apply to works of art again from 2025?
Yes, as of 1 January 2025, the supply, intra-Community acquisition, and importation of works of art and collectors' items will once again be subject to the reduced VAT rate. This was made possible by an amendment to EU law. However, the leasing of works of art and collectors' items remains excluded from the reduced rate.
As of: December 2024
Does provisional legal protection automatically apply to all inheritance tax assessments?
No, provisional legal protection is not granted automatically. The taxpayer must file a corresponding application and demonstrate a legitimate interest, for example that the inheritance tax cannot be paid from the estate itself. Without such a particular hardship situation, the payment obligation remains in force.
As of: December 2013
Does the 1% rule apply to a VW van with two seats and a windowless cargo area?
No. In its ruling of 17 February 2016 (Az. X R 32/11), the BFH held that no private-use share under the 1% rule must be taxed for a VW van with only two seats, a separated driver's cab and a windowless cargo area. Based on their objective design, such vehicles qualify as pure commercial vehicles for the transport of goods.
As of: September 2016
Does the EUR 1,000 cap on double household management also apply abroad?
No. The monthly cap of EUR 1,000 under § 9 Abs. 1 S. 3 Nr. 5 S. 4 EStG applies exclusively to accommodations within Germany. For a double household maintained abroad, the actually necessary accommodation costs are deductible as income-related expenses.
As of: November 2023
Does the EUR 35 gift limit also apply to promotional calendars featuring a company logo?
Yes, the gift limit per recipient and year must also be observed for promotional calendars. In the case decided, the unit price was around EUR 12 and thus below the threshold. However, staying within the value limit alone does not safeguard the business expense deduction – the record-keeping requirements must also be met.
As of: July 2016
Does the so-called Abfärberegelung (commercial infection rule) also apply to the supply of factor preparations to haemophiliacs?
Yes. The supply of so-called factor preparations within the meaning of the German Medicinal Products Act by joint medical practices to haemophiliacs for self-administration at home also constitutes a commercial activity. It can therefore likewise trigger a commercial infection of the entire income of the joint practice, provided the de minimis threshold is exceeded.
As of: March 2017
Does the reporting obligation for electronic cash registers under § 146a Abs. 4 AO already apply?
No, the reporting obligation under § 146a Abs. 4 AO does not apply until an electronic transmission option is made available. The date on which this option will become available will be announced separately by the tax authorities.
As of: November 2019
Does the exemption for emergency physicians also apply to anesthesiologists in hospital operating rooms?
No. The exemption under which emergency physicians working on a rescue team are not subject to social security contributions cannot be transferred to anesthesiologists in a hospital's operating room. These professionals are regularly considered dependent employees and are therefore subject to mandatory social security contributions.
As of: August 2017
Does the BSG case law also apply to typical exploiters under Section 24 (1) KSVG?
No. For the typical exploiter companies expressly listed in Section 24 (1) KSVG, it is irrelevant whether commissions are only awarded occasionally. For these companies, the obligation to pay contributions exists regardless of the frequency of commissions.
As of: August 2022
Is the Cash-GmbH structure still valid under current law?
The draft legislation restricting the Cash-GmbH was initially withdrawn, so existing law continues to apply unchanged. New rules under the 2013 Annual Tax Act remain possible but unresolved. Anyone planning an anticipated succession should monitor developments closely, as existing structuring opportunities could be eliminated at short notice.
As of: November 2012
Does the withdrawal of real estate from business assets qualify as an acquisition within the meaning of § 23 EStG?
Yes. Under § 23 Abs. 1 S. 2 EStG, the transfer of an asset from business assets to private assets is treated as an acquisition. If the property is sold within 10 years of the withdrawal, this constitutes a taxable private sale transaction. The date of withdrawal is decisive for the start of the 10-year period.
As of: July 2022
Does the reduction also apply to liquidation losses of a foreign subsidiary partnership?
Yes. The exclusion from the trade income covers not only current income from the participation but also losses arising from the liquidation of a foreign subsidiary partnership, including any related currency losses.
As of: April 2016
Does the ODR information obligation also apply to sellers on Amazon, eBay, or DaWanda?
Yes, the information obligation also extends to merchants selling through external online platforms such as Amazon, eBay, or DaWanda. The reference to the EU Commission's ODR platform must therefore also be included on these seller profiles, and as a clickable link where technically feasible.
As of: January 2016
Does the gift tax liability also apply to joint accounts held by spouses?
No, the BFH ruling exclusively concerns individual accounts and individual securities accounts. Joint accounts held by spouses are not covered by this case law and are assessed differently for gift tax purposes.
As of: September 2016
Does the tax exemption for restructuring gains also apply in cases of discharge of residual debt?
Yes, the tax exemption for restructuring gains also applies in cases of discharge of residual debt (Restschuldbefreiung). A statutory clarification ensures that the rules on restructuring gains apply accordingly.
As of: December 2024
Does the repeal of Section 8c (1) KStG also apply to trade tax?
Yes, the repeal is mirrored for trade tax purposes via Section 36 (2d) GewStG. Consequently, the trade tax loss carryforward is also preserved in cases of proportional share transfers. This ensures parallel treatment of corporate income tax and trade tax.
As of: November 2018
Does the reduced VAT rate of 7% also apply to beverages in the hospitality sector?
No, the temporary reduction of the VAT rate to 7% applies exclusively to food in the hospitality sector. Beverages remain subject to the standard VAT rate of 19%. Hospitality businesses must therefore record food and beverages separately for VAT purposes.
As of: May 2020
Does the EUR 40 late payment fee also apply to delayed installment payments?
Yes, the flat fee of EUR 40.00 under § 288 Abs. 5 BGB is also payable for delayed installment payments. The only decisive factor is that the employer is in default with the payment.
As of: July 2016
Does providing a dwelling to one's own children qualify as use for personal residential purposes under § 23 EStG?
Yes, the rent-free provision of a dwelling to one's own children is generally recognized as use for personal residential purposes within the meaning of § 23 Abs. 1 Nr. 1 Satz 3 EStG. However, this requires that the children qualify for income tax consideration under § 32 EStG, since the taxpayer is thereby fulfilling their maintenance obligation. Only under this condition can a capital gain from the sale remain tax-free.
As of: October 2023
Does the three-month child benefit waiting period also apply to EU nationals who have recently moved to Germany?
According to the ruling of the FG Münster dated 10 December 2020, the three-month waiting period for non-employed EU nationals does not apply if an entitlement to child benefit in Germany already existed before the establishment of domestic residence. In such cases, the Familienkasse may not refuse child benefit for the first three months. An appeal to the BFH was admitted due to the fundamental significance of the matter.
As of: February 2021
Does the electronic filing obligation also apply to part-time self-employment?
Yes. Anyone working on a part-time self-employed basis – for example as a photographer, author, or diving instructor – must submit their income tax return electronically, provided the profit exceeds the threshold of 410 euros. The amount of primary income from other income categories is irrelevant in this regard.
As of: September 2015
Does the increased flat rate apply from the first kilometre of the commute?
No, the increase only applies from the 21st distance kilometre onwards. For the first 20 kilometres of the one-way distance between home and primary place of work, the rate remains at EUR 0.30 per kilometre.
As of: March 2020
Gilt die geplante Neuregelung der Verlustverrechnung nur für Start-ups?
Nein, die Neuregelung ist nicht auf Start-ups oder innovative Unternehmen beschränkt. Sie soll grundsätzlich allen Körperschaften zugutekommen, auch wenn ein wichtiger Anwendungsbereich die Verbesserung der finanziellen Situation junger Unternehmen ist.
As of: September 2016
Does the new BFH case law on company events also apply retroactively?
Yes, the revised case law applies to all cases that are still open and therefore also benefits employers for past periods. It may thus be worthwhile to review company events previously treated as taxable.
As of: October 2013
Does the new calculation method also apply to accident vehicles that have actually been repaired?
No, the cap based on the notional book value applies only if the repair is not carried out. If the actual repair costs are incurred, they are deductible as work-related expenses (Werbungskosten) in the amount proven, to the extent not reimbursed by insurance. The limitation therefore only concerns the notional loss in substance.
As of: August 2013
Does the shortened useful life also apply to software?
Yes, the one-year useful life also applies to operating and application software used for data entry and processing. The acquisition costs for software can therefore likewise be deducted in full as a business expense in the year of acquisition.
As of: March 2021
Does the ten-year speculation period also apply to the sale of owner-occupied holiday properties?
According to a ruling by the Fiscal Court of Cologne dated 16 October 2016 (Az. 8 K 3825/11), the ten-year disposal period also applies to owner-occupied holiday properties held as private assets. The court thus deviates from the previous practice of the tax authorities, which had treated such sales as tax-free regardless of the holding period, in line with owner-occupied primary residences. An appeal on points of law is currently pending before the BFH (Az. IX R 37/16).
As of: July 2017
Does letting a property to one's own child qualify as personal use within the meaning of § 23 EStG?
Providing a property rent-free to a dependent child can qualify as indirect use for personal residential purposes and trigger the tax exemption. This requires that the property is used exclusively by the child. If another person, such as a divorced spouse, also lives there, the exemption does not apply, as this person is considered an unrelated third party.
As of: August 2023
Is a shareholder loan classified as equity or debt on the balance sheet?
On the balance sheet, it is classified as debt. However, due to the shareholder's deeper insight and influence, it is often viewed as a hybrid form. In the event of insolvency, the Insolvenzordnung (German Insolvency Code) treats shareholder loans like equity, automatically ranking the shareholder as a subordinated creditor of the lowest rank.
As of: December 2020
Does a taxi qualify as public transport within the meaning of § 9 Abs. 2 S. 2 EStG?
No. In its ruling of 9 June 2022 (VI R 26/20), the BFH held that a taxi does not constitute public transport within the meaning of § 9 Abs. 2 S. 2 EStG. When privileging public transport, the legislator had scheduled-line services in mind, not licence-required occasional transport by taxi.
As of: December 2022
Does a non-compete obligation also apply to non-commercial employees and trainees?
Yes, even though no statutory provision comparable to § 60 HGB exists for this group. In these cases, the non-compete obligation derives from the employee's general duty of loyalty under the employment contract toward the employer.
As of: March 2013
Does an educational institution qualify as a first place of work even for short full-time courses?
Yes. According to the BFH ruling of 14 May 2020, the duration of a full-time educational program is irrelevant for classification as a first place of work. § 9 Abs. 4 Satz 8 EStG does not require a minimum duration. It is sufficient that the educational institution is attended continuously, and not merely occasionally, during the fixed-term program.
As of: October 2020
Gilt für Restaurantumsätze wieder der ermäßigte Umsatzsteuersatz?
Für Speisen in der Gastronomie ist die Rückkehr zum ermäßigten Steuersatz vorgesehen — ab wann genau, steht mit Fundstelle im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Does the one-year or ten-year speculation period apply to co-rented furniture?
For furniture and furnishings used to generate income (e.g., through rental), the speculation period is extended from one to ten years. According to the FG Münster, this applies even if the items were rented out in at least one calendar year. In practice, however, this extension is only relevant if the items are not everyday objects.
As of: January 2021
Does the reduced tax rate apply to overtime compensation paid out in a lump sum?
Yes. In its ruling of 2 December 2021 (VI R 23/19), the BFH held that overtime compensation paid retroactively in a lump sum within a single assessment period qualifies as extraordinary income under § 34 Abs. 1 EStG and is therefore taxed at the reduced rate (one-fifth rule). This mitigates the additional tax burden resulting from the progressive tariff.
As of: March 2022
Does the sponsoring decree of 18 February 1998 apply to expenses for golf tournaments?
No, the sponsoring decree does not apply to expenses for organising your own golf tournaments. The sponsoring rationale is not the primary purpose here, since the taxpayer acts as the organiser and selects the participants. Such expenses are therefore subject to the deduction prohibition under § 4 Abs. 5 S. 1 Nr. 4 EStG.
As of: August 2016
Does the deduction prohibition for dietary food also apply to chronic metabolic diseases?
For pure dietary foods, the deduction prohibition under § 33 Abs. 2 Satz 3 EStG applies regardless of the underlying illness. However, medically prescribed pharmaceuticals used to treat the chronic condition are excluded from this prohibition and remain deductible as extraordinary expenses (außergewöhnliche Belastungen).
As of: August 2015