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- 2 min readRecommended
Important: From autumn 2024, entrepreneurs and freelancers will receive the newly introduced Business Identification Number — have you heard about it?
The Business Identification Number (Wirtschafts-Identifikationsnummer, W-IdNr.) under § 139c AO is being introduced as a uniform federal business identifier. It serves as the primary key in the new Business Base Data Register established under the Unternehmensbasisdatenregistergesetz (UBRegG). The act introducing the
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
No Trade Tax Reduction in Cases of Reverse Operational Split
The Bundesfinanzhof has ruled that real estate companies may claim the extended trade tax reduction under § 9 No. 1 Sentence 2 GewStG upon request, even in cases of a reverse operational split (umgekehrte Betriebsaufspaltung). The extended
Tax AdvisoryAuditSource: Deubner Verlag - 1 min readRecommended
Benefit Period for the Tax Reduction under Section 35b EStG
The Bundesfinanzhof has ruled that the benefit period for the income tax reduction under § 35b EStG begins when the inheritance tax arises, typically upon the death of the decedent. This means that the
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Tax Incentives for Energy-Efficient Building Renovations
As climate protection plays an increasingly important role in our lives, the state has long sought to provide tax incentives for climate-friendly building renovations. To this end, the legislator passed the Act Implementing the 2030 Climate Protection Programme in Tax Law, which
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
Payments to a School Support Association as School Fees
Legal framework: Parents may deduct 30% of the fees paid for their children to attend a school operated by a private body (e.g. a foundation) or a predominantly privately financed school
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Chain Transactions – Intra-Community Triangular Transactions
Where several entrepreneurs enter into a supply transaction concerning the same item and the item passes directly from the first entrepreneur to the final customer, this constitutes a chain transaction within the meaning of the German VAT Code (§
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
Prepayment Penalty as Income-Related Expense for the Sold Rental Property
A prepayment penalty (Vorfälligkeitsentschädigung) is the fee that must be paid to the lender (e.g. the bank) when a loan is repaid early. The question arises how such a fee should be treated for tax purposes
Tax AdvisoryAuditSource: Deubner Verlag - 1 min readRecommended
Standard Business Expense Allowance for Freelancers
For certain freelance activities, the tax authorities permit a flat-rate deduction of business expenses (H 18.2 EStH). The allowance can be deducted without providing supporting documents. For the following freelance
Tax AdvisoryAuditSource: Deubner Verlag - 6 min readRecommended
Outlook: Mandatory Electronic Invoicing
Note: The new electronic invoicing format creates the initial conditions for a reporting system for electronic invoices to the tax authorities. This will enable real-time invoice verification
Year-EndTax AdvisorySource: Eigene Recherche - 3 min readRecommended
BFH ruling: Accommodation costs for a second household abroad
For employees in the service of the Federal Republic of Germany (e.g. ambassadors), field staff, employees on secondment, etc., it is quite common to work for several days, weeks or months at the location of their foreign place of employment.
Tax AdvisoryAuditSource: Deubner Verlag - 1 min readRecommended
BFH ruling: VAT exemption for operating a cafeteria in a retirement home
Case in dispute: The plaintiff operates a retirement home. In addition to breakfast, lunch, and dinner, residents were also provided with a dining room on their respective ward. Furthermore
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
Preparing an Inventory List and Conducting a Stocktake
Every merchant within the meaning of the German Commercial Code (HGB) must prepare a list of inventory at year-end. All assets (e.g. land, goods, receivables, liabilities, etc.) are measured by quantity and value
Tax AdvisoryAuditSource: Deubner Verlag - 4 min readRecommended
BFH Ruling: Child Benefit for Children Studying in EU/Non-EU Countries
More and more young adults want to study internationally. Countries such as the USA, the United Kingdom and Australia (non-EU countries) are quite popular. This raises the question for parents of
Tax AdvisoryAuditSource: Deubner Verlag - 1 min readRecommended
No Anticipatory Deduction of Income-Related Expenses Where a Usufruct Is Reserved
Income-related expenses are expenditures incurred to acquire, secure and maintain income (§ 9 Abs. 1 S. 1 EStG). Accordingly, such expenses are also deductible in advance to acquire income (e.g. application photos, etc.)
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Photovoltaic Systems – Co-Entrepreneurship and Commercial Infection
Following the expansion of the income tax exemption under Section 3 No. 72 EStG, the thresholds for tax-exempt operation of photovoltaic systems have been broadened. For asset-managing partnerships that were previously deemed commercially infected through the operation
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
BFH ruling: income taxes as estate liabilities upon cessation of an agricultural and forestry business
Case at issue: The plaintiffs are heirs of the testator who died in 2016. At the time of death, he owned a leased agricultural and forestry (LuF) business. Following the death of the testator
Tax AdvisoryAuditSource: Deubner Verlag - 2 min readRecommended
Rent-Free Provision of an Apartment to Children Not Considered Under § 32 – Sale Transaction
During studies or to provide their own living space, it is quite common for parents to let their children use apartments or rooms free of charge to support their living costs. In the context
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
VAT Exemption – Letting and Leasing Including Operating Equipment
Statutory background: As a rule, income from the letting and leasing of land and buildings is exempt from VAT under § 4 No. 12 S. 1 lit. a UStG. This rule
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
Self-Employed or Commercial Activity by Pensioners – Recognition of a Home Office
Due to the time freed up after their main occupation and often for financial reasons, pensioners are increasingly taking up self-employed or commercial work after the end of their main career (e.g. as writers, craftsmen,
Tax AdvisoryAuditSource: Deubner Verlag - 3 min readRecommended
BFH Ruling: Private Disposal Transaction in the Course of Divorce
Case at issue: Sale of co-ownership share after separation. The now-divorced spouses acquired a single-family home in 2008, each holding a 50% share. They lived in it together with their son until
Tax AdvisoryAuditSource: Deubner Verlag