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) […]
The German Federal Ministry of Finance (BMF) is extending the existing tax equity measures in their temporal scope due to the effects of the coronavirus. Selected contents of the BMF letter dated March 18, 2021 are presented below: Deferral of taxes Taxpayers who are directly and not insignificantly negatively affected by the pandemic can apply for a deferral of taxes […]
Taking advantage of tax benefits: e-bikes Background Over the last few years, electric bicycles (e-bikes or ebikes) in particular have become increasingly popular alongside classic bicycles. At the beginning of 2015, there were still electric bikes in 1.5 million households. At the beginning of 2020, 4.3 million households in Germany already owned at least one electric bike. This means that […]
From January 1, 2021, certain questionnaires for tax registration must be submitted electronically Taxpayers must provide the relevant tax office with further information on the legal and factual circumstances relevant to taxation within one month of opening an agricultural, forestry or commercial business or commencing a freelance activity. Regulation until December 31, 2020 Previously, when notifying the opening of a […]
Mandatory reporting on cross-border tax planning Background An EU-directive on mandatory disclosure rules (Council Directive on administrative cooperation in the field of taxation, so called “DAC6”) aimed at increasing transparency to detect potentially aggressive cross-border tax planning became effective in June 2018. DAC6 applies to cross-border tax arrangements, which meet one or more specified characteristics (hallmarks), and which concern either […]
Coronavirus: Employee allowances are tax-free up to EUR 1,500 during the corona pandemic In times of the corona pandemic, in Germany, special payments for employees up to an amount of EUR 1,500 will be made tax and social security free in 2020. Employers can now pay subsidies up to an amount of EUR 1,500 tax-free to their employees or grant […]
Home office during corona: Tax aspects Employees are currently being sent to the home office due to precautions in the context of the corona situation. It is questionable whether and to what extent expenditure during home office can be claimed against tax. Principle If the home office forms the center of all operational and professional activity, the full amount of […]
