All posts by s&w

Straight-line depreciation: new rules from 2023 onwards

New depreciation rules will make the construction of rental properties more attractive Depreciation (“AfA”) plays an important role in the decision pro or contra construction of rental housing. In order to make new construction of rental properties more attractive, the German Federal Government has adopted new provisions as part of the 2022 Annual Tax Act. The most important thing that […]

Shorted depreciation period of a building: tax saving opportunities for landlords

BACKGROUND Landlords can depreciate rented buildings more quickly and thus save income taxes if they can prove a shorter useful life. This no longer requires an expert appraisal of the building’s substance; an online appraisal is sufficient. The Cologne Fiscal Court thus follows the opinion of the German Federal Fiscal Court. Owners of rented commercially used real estate can benefit […]

Energy Price Allowance (Energiepreispauschale): important rules, also for entrepreneurs and foreigners living in Germany

Background According 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 […]

Fourth Corona Tax Relief Act: important changes

Background On May 19, 2022, the German Bundestag passed the Fourth Act on the Implementation of Tax Relief Measures to Address the Corona Crisis (“Fourth Corona Tax Relief Act” or “Fourth Corona StHG”) to minimize the economic impact of the ongoing Corona-related restrictions and to provide additional investment incentives. Importantly, Federal Council approval is required (scheduled for June 10, 2022) […]

Borderless working in Germany: Is this possible?

Background To be attractive especially for sought-after specialists, employers increasingly offer the possibility to work abroad temporarily or even permanently, i.e. to work literally “borderless”. This applies not only to German but also to foreign employers. In our consulting practice, we have received an increasing number of inquiries on this topic, especially since the start of the Corona pandemic. In […]

Extension of Corona Überbrückungshilfe III and Neustarthilfe until end of September 2021

The German Federal Government extends Überbrückungshilfe III (Bridging Assistance III) until end of September 2021. According to a press release issued by the Federal Ministry for Economic Affairs and Energy on June 9, 2021, the German government is therefore extending Überbrückungshilfe III for affected companies and solo self-employed persons until September 30, 2021 as Überbrückungshilfe III Plus. Funding conditions will […]

R&D allowance: Application possible since April 1, 2021

Background The Act on Tax Subsidies for Research and Development (R&D) (Forschungszulagengesetz – FZulG) of December 14, 2019, introduced a new tax-based research and development subsidy in the form of a R&D allowance. The tax incentive thereby joins the well-developed project funding landscape and is intended to strengthen Germany as an investment location and to stimulate the research activities of […]

One-Stop-Shop from July 1, 2021: What will change for B2C sellers?

Background The so called One-Stop-Shop procedure (OSS) recently adopted as part of the German Annual Tax Act 2020 will replace the current VAT Mini-One-Stop-Shop (MOSS) procedure as of July 1, 2021. The current MOSS procedure is a special procedure that allows an entrepreneur to centrally pay VAT amounts due in other EU countries. In this way, registration in several member […]

GDPR Cookie Consent with Real Cookie Banner