In a ruling, the Federal Fiscal Court (Bundesfinanzhof, BFH) has clarified that a contractual allocation of the purchase price may not be replaced by a calculation in accordance with the Excel tool of the Federal Ministry of Finance (Bundesministerium für Finanzen, BMF). Background The BMF’s Excel tool is used to determine the assessment basis for the depreciation of buildings pursuant […]
The Annual Tax Act of 2022 (JStG 2022) is a typical omnibus bill comprising over 100 individual provisions spanning the entire spectrum of tax law. It also includes key initiatives by the “traffic light” coalition aimed at reducing the tax burden on citizens. In doing so, it also responds to court rulings and EU requirements. The law was passed by […]
A RULING BY THE FISCAL COURT MAKES LENDING AMONG RELATIVES MORE ATTRACTIVE Borrowing money, but from whom? – Not everyone gets the loan they want from the bank. Borrowing from a relative is therefore an alternative that many people use. However, even with such loans the state also collects, because interest by relatives is taxable. However not in principle, as […]
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 The United Kingdom (UK) withdrew from the European Union (EU) on February 1, 2020, with a transition period during which EU law generally continues to apply within and in relation to the UK. The transition period set forth in the Withdrawal Agreement ends on December 31, 2020. Consequently, as of January 1, 2021, the United Kingdom is a “third […]
Cryptocurrencies and the Tax Implications for Individual Investors Trading in cryptocurrencies (e.g., Bitcoin, Ether) is considered a private sale by individual investors (Section 23 of the Income Tax Act (EStG)): The one-year speculation period applies to each individual transaction. If the period between the purchase and sale is longer than one year, this transaction is exempt from income tax. Profits […]
