BackgroundAccording to the legislator, the recently introduced one-time energy price allowance (“Energiepreispauschale”; hereinafter referred to as “EPP”) of EUR 300 is intended to relieve those groups of the population who typically incur travel costs in connection with their income generation and who are heavily burdened by the current energy price development. The EPP is generally taxable, so that the net relief is reduced in accordance with the personal tax burden.
Entitlement to the Energy Price AllowanceAll persons who reside or habitually reside in Germany during the year 2022 (if applicable, also for only part of the year) (unlimited income tax liability) and receive income from one of the following types of income in 2022 are entitled to the EPP:
- Agriculture and forestry,
- Business self-employment, or
- Income as an employee (e.g. blue-collar workers, white-collar workers, board members, managing directors, etc.) from active employment.