Questions & Answers
Answers to common questions.
Curated from our articles on tax advisory, statutory audit and legal services — alphabetical, filtered by audience or topic.
For you as…
Topics
2304 questions · Page 8 / 47
Ist ein Kaufpreisdarlehen eine Alternative zur Immobilienschenkung?
Statt einer Schenkung kann ein Kaufpreisdarlehen ein Gestaltungsmittel bei der Immobilienübertragung sein — Chancen und Grenzen im Beitrag. (Quelle: Deubner Recht & Steuern)
As of: December 2025
Can donations for disaster relief be deducted without a formal donation receipt?
Yes, in the event of a disaster, a simplified payment record such as a bank statement or cash deposit slip is sufficient for claiming the donation deduction. A formal donation receipt (Zuwendungsbestätigung) is not required. However, this relief applies only for a limited period – in the case of the July 2021 flood, for donations made up to 31 October 2021.
As of: October 2021
Is input VAT deduction possible from the per diem meal allowance?
No, the per diem meal allowance itself does not allow input VAT deduction (BFH ruling of 7 July 2005, V R 4/03). However, businesses entitled to input VAT deduction may claim the VAT from actual meal invoices, even if the costs are not deductible as business expenses for income tax purposes (Section 15.6 (1) UStAE).
As of: July 2022
Is it possible to switch from declining-balance to straight-line depreciation?
Yes, a switch from declining-balance to straight-line depreciation is permitted at any time under § 7 Abs. 3 Satz 1 EStG. From the date of the switch, the remaining book value and the remaining useful life of the asset serve as the basis for straight-line depreciation.
As of: October 2020
Is a home office considered business assets in the case of self-employed activity?
When used for self-employed or commercial purposes, a home office generally must be capitalized as required business assets, provided the value thresholds of § 8 EStDV are exceeded. This has consequences for the later disclosure of hidden reserves, particularly upon cessation of the activity or sale of the property.
As of: September 2023
Is a mid-year switch between the 1% rule and the logbook method permitted?
No. The BFH rejects a mid-year switch between the 1% rule and the logbook method. This is justified by the legislative principle of simplification and standardization, as well as the increased risk of manipulation when changing methods within a single assessment period.
As of: July 2014
Is a work corner in the living room tax-deductible?
No. The BFH has clarified that costs for mixed-use rooms such as a work corner in the living room cannot be claimed for tax purposes. A home office must be spatially separated and used almost exclusively for professional purposes.
As of: August 2016
Is it possible to split mixed-purpose sports expenses into private and professional portions?
In the professional footballer case, the FG Rheinland-Pfalz rejected any allocation of the costs between private and professional use. A prerequisite for such a split would be an objective allocation criterion, which was not available for the sports channel subscription, personal trainer, and sportswear.
As of: November 2014
Is a dismissal without the integration office's consent valid if the acquirer was unaware of the severe disability?
No. According to BAG case law, such a dismissal is invalid. What matters is the seller's knowledge at the time of hiring; this knowledge is attributed to the acquirer. A dismissal without prior consent of the integration office is therefore invalid, even if there are operational reasons.
As of: June 2009
Is flat-rate wage tax of 2% under Section 40a (2) EStG permissible in this scenario?
No. The 2% flat rate requires that marginal employment exists within the meaning of social security law. Since a single, unified employment relationship with the same employer is not recognized as marginal employment, flat-rate taxation is likewise excluded. The remuneration must be taxed as unified wages under Section 19 EStG.
As of: February 2023
Is a care level (Pflegestufe) required to deduct renovation costs as an extraordinary burden?
No, having an assigned care level is not a mandatory requirement for the tax deduction. Even if the long-term care insurance fund refuses to cover the costs, disability-related renovation measures can be recognized as an extraordinary burden, provided they are necessary due to illness or disability.
As of: May 2015
Is an early repayment penalty deductible as income-related expenses when selling a rented property?
No. According to the ruling of the Cologne Tax Court dated 19 October 2023 (11 K 1802/22), an early repayment penalty incurred upon the sale of a rental property is not deductible as ongoing income-related expenses under income from letting and leasing. Economically, the payment is no longer attributable to the ongoing rental activity but rather to the disposal. The required causal link with rental income is therefore missing.
As of: February 2024
Is joint tax assessment possible despite spouses living in separate residences?
Yes, joint assessment for income tax purposes is possible even if spouses live in physically separate residences. The decisive factor is that the personal and intellectual partnership between the spouses continues to exist and that they are not permanently separated within the meaning of § 26 EStG. The Fiscal Court of Münster confirmed this in its judgment of 22 February 2017 (Az. 7 K 2441/15 E).
As of: March 2017
Is a digital signature still required for electronic invoices?
Since 01.07.2011, a digital signature is no longer mandatory for electronic invoices. Invoices may be sent as a PDF file or by e-mail without an electronic signature. However, other requirements must be met to secure the input VAT deduction.
As of: November 2012
Is summary dismissal permissible in cases of unauthorized competing activity by an employee?
Yes. In its judgment of 28 January 2013 (Az. 16 Sa 593/12), the Hessisches Landesarbeitsgericht (Hesse Higher Labor Court) ruled that summary dismissal is justified if an employee engages in unauthorized competing activities. Such a breach of duty can terminate the employment relationship immediately upon receipt of the notice of dismissal.
As of: March 2013
Is retroactive funding under the Baukindergeld (Germany's child-related home ownership subsidy) possible?
Yes, retroactive funding back to 1 January 2018 is possible if the date of the notarised purchase agreement or the building permit falls within 2018. The application must still be submitted within three months after moving in.
As of: December 2018
Is it a tax disadvantage to care for a relative yourself instead of hiring a professional care service?
From a tax perspective, this can be disadvantageous, as only actual payments to a care service qualify as extraordinary expenses under § 33 EStG. The Münster Tax Court has confirmed that this cannot be offset by applying fictitious hourly rates for your own care services.
As of: May 2015
Is fresh fruit provided to employees considered taxable wages?
No, providing fresh fruit at the workplace does not constitute taxable wages. It is treated for tax purposes in the same way as providing unfilled baked goods and hot beverages, and qualifies as a courtesy gesture by the employer.
As of: October 2019
Has an appeal been filed against the ruling of the FG Baden-Württemberg on the deduction of income-related expenses?
Yes, the appeal was allowed due to the fundamental significance of the legal issue. The case is pending before the BFH under file number VIII R 13/13, so a final ruling by the highest court is still outstanding.
As of: February 2013
Is an appeal possible against the ruling on the dual-occasion celebration?
Yes, the Finanzgericht Baden-Württemberg (Tax Court) allowed an appeal to the Bundesfinanzhof (Federal Fiscal Court), which was pending there under case no. VI R 46/14. Until a decision by the highest court is issued, comparable cases should be kept open.
As of: April 2015
Is a reduction of the statutory interest rate for tax purposes to be expected in the future?
The BFH ruling expressly only covers the period up to March 2011. Whether the legislator will adjust and lower the interest rate going forward in line with the changed market interest level was left open in the decision and is a political matter.
As of: September 2014
Can passenger transport by horse-drawn carriage qualify for the reduced VAT rate?
Yes. In its ruling of 13 November 2019, the BFH held that transport by horse-drawn carriage may qualify as tax-privileged taxi service under § 12 Abs. 2 Nr. 10 UStG. The prerequisite is that motor vehicle traffic is generally prohibited within the municipal area and that the other characteristics of a taxi service are met in a comparable manner.
As of: January 2020
Can sportswear be deducted as work-related expenses?
In the case decided, the Tax Court of Rhineland-Palatinate denied the deduction of sportswear as work-related expenses because an objective allocation to professional activity was not possible. Sportswear can generally also be used privately and therefore does not qualify as typical professional clothing.
As of: November 2014
Can a Christmas bonus or a contractually agreed special payment be converted into an inflation compensation bonus?
A conversion of Christmas bonuses or special payments based on contractual agreements or legal obligations into an inflation compensation bonus (IAP) is not possible, as the required link to inflation is missing. Only voluntary special payments without a contractual or legal basis – such as gratuities – can be converted into a tax-free IAP. The payment must be shown on the payslip as „Inflationsausgleichsprämie“.
As of: January 2023
Can an emergency managing director be appointed for a GbR?
No. By order dated 23 September 2014 (Az. II ZB 4/14), the BGH ruled that the appointment of an emergency managing director is not possible for a Gesellschaft bürgerlichen Rechts (GbR). § 29 BGB is tailored to associations and cannot be applied to the GbR, as there is no unintended regulatory gap.
As of: January 2015
Can a lower market value be proven for the property tax value (Grundsteuerwert)?
Yes, under the new statutory rules, taxpayers may prove a lower fair market value (gemeiner Wert) of their property, which must then be applied. A purchase price agreed in ordinary business dealings within one year before or after the main valuation date can also serve as proof. The assessed Grundsteuerwert must not exceed the proven value by 40 % or more.
As of: December 2024
Can inheritance tax already paid be provisionally refunded due to the constitutional proceedings?
Yes, in the case decided, the BFH allowed the suspension of enforcement even for inheritance tax already paid, making a provisional refund possible. Tax offices and tax courts had initially rejected this, but the BFH clarified that, where a legitimate interest exists, a suspension of enforcement may also be considered.
As of: December 2013
Can the employer reimburse relocation expenses tax-free?
Yes. If the move is in the employer's particular business interest, the employer may reimburse tax-deductible relocation expenses free of wage tax and social security contributions. Such reimbursement is an alternative to claiming the costs as work-related expenses in your own tax return. We recommend raising this point during contract negotiations with the new employer.
As of: July 2019
Can the child bonus be garnished?
In principle, the child bonus is not subject to garnishment. The sole exception applies to garnishments based on statutory maintenance claims of the child concerned.
As of: March 2021
Can the lower used-vehicle value be applied instead of the gross list price?
No, applying the actual used-vehicle value instead of the gross list price when new is not permitted. In the disputed case, the employee filed such a request without success – the BFH insisted on the standardized application of the list price when new.
As of: February 2013
Can the suspension of the obligation to file for insolvency be extended beyond 30 September 2020?
Yes, a regulatory authorization for the BMJV is planned, allowing the measure to be extended until 31 March 2021 at the latest.
As of: March 2020
Can the one-fifth rule still be applied to wage tax withholding in 2025?
No. From the 2025 wage tax withholding onwards, employers can no longer apply the one-fifth rule (Fünftelungsregelung) for severance payments or remuneration for multi-year activities within the wage tax withholding procedure, as the process was considered too complex for employers. However, employees can still claim the tax relief as part of their income tax return.
As of: December 2024
Can the inflation compensation bonus be paid in installments or as a benefit in kind?
Yes, staggered payment – for example on a monthly basis – is permissible under tax law, provided the total amount of EUR 3,000 is not exceeded. Pursuant to § 3 No. 11 c) EStG, both cash and in-kind benefits are permitted.
As of: January 2023
Can repaying other rental property loans with the sale proceeds qualify as anticipated income-related expenses?
In principle, redirecting the remaining sale proceeds to repay other rental property loans may be possible, but it requires demonstrable intent and actual prompt use of the funds. In the case at hand, the Tax Court of Cologne denied the deduction because there was no concrete evidence and no immediate intent to repay. Taxpayers should therefore allocate the funds promptly and document the process.
As of: February 2024
Can input VAT from hospitality invoices be fully deducted?
Yes, for VAT purposes, input VAT on hospitality expenses is 100% deductible, even though only 70% of the costs are recognized as business expenses for income tax purposes. The reduction therefore applies exclusively to income tax.
As of: March 2014
Can the chosen assessment type still be changed retroactively from 2013 onwards?
From 2013 onwards, the assessment type generally becomes binding upon submission of the tax return. A subsequent change is only possible within the scope of specific correction and amendment provisions. Previously, the chosen option could be changed any number of times until the tax assessment became final.
As of: June 2014
Can a professional footballer deduct the cost of a Sky subscription as work-related expenses?
No. According to the ruling of the Finanzgericht Münster of 24 March 2015 (Az. 2 K 3027/12 E), the cost of the Sky football package is not deductible as work-related expenses, even for a licensed professional footballer. Such expenses are attributed to private lifestyle, as the service is aimed at the general public rather than a specialist audience.
As of: April 2015
Can a tradesperson claim compensation for services rendered under an undeclared cash agreement?
No. Since the entire contract for work and services is void due to the undeclared cash arrangement, the tradesperson is entitled to neither further remuneration nor compensation for the value of services already rendered. This applies even if only part of the fee was agreed to be paid off the books.
As of: August 2013
Can a mini-jobber be exempted from compulsory pension insurance?
Yes, mini-jobbers can apply to be exempted from compulsory pension insurance. A written application for insurance exemption must be submitted to the employer. Without such an application, the employee's contribution share is automatically withheld from the wages.
As of: September 2012
Can a pensioner deduct home office costs multiple times when pursuing several self-employed activities?
No. The annual flat rate of EUR 1,260 or the full deduction of actual costs is person-related and can only be claimed once in total. If several self-employed or commercial activities are carried out in the same home office, the costs or the flat rate must be allocated to the respective activities according to their share of use.
As of: September 2023
Can a professional footballer deduct a sports channel subscription for tax purposes?
No. The Tax Court of Rhineland-Palatinate ruled on 18.07.2014 (Az. 1 K 1490/12) that even a professional footballer cannot claim the costs of a sports channel subscription as work-related expenses (Werbungskosten). Reasoning: A football TV subscription is typically used predominantly for private purposes, driven by a general interest in football.
As of: November 2014
Can an organizer charge admission to manage visitor numbers at a Christmas market?
Even for the purpose of managing visitor flows, no admission fee may be charged on public green spaces. In an expedited proceeding, the Verwaltungsgericht Berlin confirmed that even a time-limited admission charge (e.g., only on Saturdays from 4:30 p.m.) is impermissible if it takes place on a public green space.
As of: December 2014
Can a rental property be depreciated over a shorter period than the AfA table provides?
Yes. Under § 7 Abs. 4 Satz 2 EStG, a landlord may apply a shorter actual useful life than the standard 40 or 50 years. The prerequisite is that the shorter useful life is conclusively substantiated, typically by an expert appraisal from an independent surveyor.
As of: March 2023
Can a home office be deducted for tax purposes on health grounds?
Yes. The Fiscal Court of Berlin-Brandenburg (judgment of 29 September 2022, 5 K 5138/21) ruled that employees may deduct the costs of a home office as income-related expenses if its use is required for health reasons. This applies even where the employer generally provides a workplace. In the case decided, the deduction was capped at the maximum amount of EUR 1,250 per year.
As of: January 2023
Can a tax reduction under § 35a EStG be claimed when offset via the shareholder clearing account?
No. The BFH ruled in its decision of 09 June 2022 (VI R 23/20) that offsetting a GmbH's craftsman invoice via the shareholder clearing account does not meet the requirements of § 35a Abs. 5 sentence 3 EStG. The shareholder clearing account is not an account of the service provider (the GmbH), but an account of the shareholder held with the GmbH.
As of: December 2022
Can a childminder choose between actual business expenses and a lump-sum deduction?
Yes, for income from self-employment there is a right to choose between deducting the actual operating costs and applying a lump-sum business expense allowance. However, the lump sum may only be applied if the care takes place in the childminder's own household. If the care is provided on third-party premises, only the actual costs are deductible.
As of: July 2021
Can a forced auction be tax-free?
Yes, a forced auction can be tax-free if more than ten years have passed between the acquisition of the property and the submission of the highest bid. In this case, the speculation period under § 23 Abs. 1 Nr. 1 EStG has expired and any capital gain is not subject to income tax.
As of: May 2022
Can an opting company revert to partnership taxation?
Yes, the KöMoG does not stipulate a minimum holding period. By filing a reversion application, the company can return to the original transparent taxation regime. The application must likewise be submitted to the tax office at least one month before the start of the fiscal year.
As of: July 2021
Can declining-balance depreciation be used for assets acquired in 2022?
Yes, declining-balance depreciation under § 7 Abs. 2 S. 1 EStG has been extended to movable fixed assets acquired or produced during the 2022 calendar year. It may be chosen as an alternative to straight-line depreciation and is capped at 2.5 times the straight-line rate, but no more than 25%.
As of: June 2022
Can Kindergeld continue to be received for a child with a long-term illness?
Yes, but on a different legal basis. Instead of § 32 Abs. 4 S. 1 Nr. 2 a EStG, eligibility may arise on grounds of disability under § 32 Abs. 4 S. 1 Nr. 3 EStG, provided the child is unable to support themselves as a result of the illness. The key requirement is the inability to self-support due to the illness.
As of: May 2022