News and perspectives.

Mixed-Use Ancillary Rooms Connected to a Home Office Not Tax-Deductible

In its ruling of 17 February 2016 (Az. X R 26/13), the Bundesfinanzhof (BFH) held that expenses for rooms of the household which are also used to a significant extent for private purposes cannot be deducted, even if

Expenses for Organizing Golf Tournaments Are Non-Deductible Business Expenses

Facts of the case: An authorized automobile dealer organized an amateur golf tournament series, acting as host and being responsible for selecting and inviting the participants. The host covered the costs

The Institut der Wirtschaftsprüfer (IDW) Issues Critical Comments on, Among Other Things, the Current Status of Business Asset Relief Under the Inheritance Tax Act

On 08 September 2016, the Mediation Committee will deliberate on the legislative resolution of the German Bundestag (BR-Drs. 344/16) and the points of criticism raised by the committees of the Bundesrat (BR-Drs. 344/1/16) concerning the act implementing the requirements of the judgment

Congratulations… Ms Thiems is now Ms Fuchs

Another name change… we were delighted that Rita finally married her long-time partner Fuchs, and we all celebrated a wonderful event. Everything was just right:

Household-Related Services Only Within Your Own Home

Household-related services are not eligible when craftsman work is carried out in an external workshop. This has now also been ruled by the Finanzgericht Rheinland-Pfalz in its judgment of 6 July 2016 (6.7.16, 1 K 1252/16). The case at hand involved

"Work Corner" – BFH Denies Tax Benefit

The home office is playing an increasingly important role in Germany's working environment. However, there is not always room for a complete office space within one's own household. Often, a corner in the living room, for example, has to do

Social Security: Artists' Social Security Contribution Reduced in 2017

The Federal Law Gazette has announced that the artists' social security contribution will be reduced to 4.8% in 2017, down from 5.2%. Source: Bundesanzeiger Verlag

Congratulations on 25 Years with the Firm!

We are delighted that Katharina Kolhep has been part of our firm for 25 years and would like to take this opportunity to thank her once again for the excellent collaboration

Our Summer 2016: Hard Shell, Soft Core

Provision of parking facilities to hotel guests is subject to the standard VAT rate of 19%; this also applies where no separate charge is levied.

In its ruling of 1 March 2016 (Az. XI-R-11/14), the BFH held that, for hotel accommodation, only those services of the hotelier that directly serve the letting (lodging) are subject to the reduced VAT rate of

At last: our "Sommerzeit" can begin!

The time has come: our magazine is finally in print, we made it! Not quite in time for the start of the holidays, but almost… because our Sommerzeit 2016 should reach you later this week

Increase of the Statutory Minimum Wage as of 1 January 2017

On 28 June 2016, the Minimum Wage Commission, composed of employer and employee representatives, unanimously decided that the statutory minimum wage will be raised from the current €8.50 to €8.84 at the beginning of 2017. Increase to €8.84

Damages for Late Wage Payments

Until now, employees had little recourse against employers in cases of late wage payments. Claims for damages from default could only be asserted if the damage could be specifically identified (e.g., reminder fees or

Calendars with Advertising Imprints – Gift or Not?

"Where high-quality advertising calendars are given to identifiable recipients, this does not constitute an advertising measure but a gratuitous benefit subject to record-keeping obligations." (FG Baden-Württemberg 12 April 2016, 6 K 2005/11)

Minimum Wage Increase to €8.84

On 28 June 2016, the Minimum Wage Commission, composed of employer and employee representatives, unanimously resolved to raise the statutory minimum wage from the current €8.50 to €8.84 at the beginning of 2017. Minimum wage increase After

Agreement Reached on Inheritance Tax Reform: Law to Take Retroactive Effect from 1 July 2016 After Adoption

On 20 June 2016, the CDU, CSU and SPD finally reached an agreement on revising the inheritance and gift tax reform. A vote in the Bundesrat is scheduled for 8 July 2016; how the Greens will vote remains to be seen

Künstlersozialversicherung (Artists' Social Insurance): Federal Labour Minister Nahles proposes reducing the contribution rate from 5.2% to 4.8%

Federal Labour Minister Andrea Nahles invited numerous representatives from the cultural sector, associations, politics and other fields to the "Future Workshop on the Künstlersozialversicherung" at the sculpture workshop of the Kulturwerk of the Berufsverband Bildender Künstler in Berlin. On 14 June 2016, around

Recent BFH Ruling on Home Offices: Ancillary Rooms Also Used Privately Cannot Be Considered

A home office that qualifies for tax recognition but for which additional ancillary rooms such as a bathroom, kitchen, or hallway are also used — rooms that are part of the private sphere and therefore used privately to a not insignificant extent — cannot

Lease Instalments Withheld by the Employer for the Use of an Employee's Car = No Income-Related Expenses for the Employee

According to a recent ruling by the Tax Court of Berlin-Brandenburg, a deduction of car lease instalments as income-related expenses is not possible in cases of salary conversion. Background: The employer had leased a car for three years and made it available to the employee

Our Company Outing This Year: Clear Skies and Endless Sunshine…

Once again, our social committee made sure we all enjoyed a wonderful day together… … this year we set off on bicycles out of town. After a