Background The 2022 Annual Tax Act provides for extensive tax breaks for small photovoltaic systems in order to accelerate the further expansion of this renewable energy source. Previous Taxation Operators of photovoltaic systems have generally generated income from business operations. This involves determining profits using the income-surplus method, which typically entails a significant administrative burden for what is often a […]
Background Given the increasing risks that companies currently face as a result of sharply rising energy and commodity prices, combined with rising interest rates and declining customer demand, the risk of corporate insolvencies in Germany has increased significantly compared to previous years. So far, this is not yet reflected in the historical trend in the number of bankruptcies. Creditreform reports […]
Background The one-time energy price allowance (hereinafter referred to simply as“EPP”) in the amount of EUR 300 is intended, according to the legislature, to provide relief to those segments of the population who typically incur travel expenses in connection with earning their income and who are facing a significant financial burden in this regard due to current […]
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 […]
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) […]
Background On May 19, 2022, the Bundestag passed the Fourth Act on the Implementation of Tax Relief Measures to Address the COVID-19 Crisis (“Fourth COVID-19 Tax Relief Act” or “Fourth Corona Tax Relief Act”) to minimize the economic consequences of the ongoing COVID-19-related restrictions and to provide additional investment incentives. Important: The Bundesrat’s approval is required (scheduled for June 10, […]
Background In a letter dated October 29, 2021, the Federal Ministry of Finance introduced a revised simplification rule for small photovoltaic systems (“PV systems”). Under this regulation, the tax authorities will assume, without further review , that the operation is a hobby activity not subject to income tax if the operator declares within a specified period that they wish to […]
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 […]
Overview Corona Emergency Aid (“Corona Soforthilfe”) could be applied for by companies and solo self-employed persons in the period from March 27, 2020 to May 31, 2020. Starting in mid-June 2021, all Corona Emergency Aid recipients who have not yet submitted a response will receive an email inviting them to submit a response and containing the information and links for […]
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 […]
