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FAQ - Taxes
Legal background
With the Act on the Reduction of the Solidarity Surcharge 1995 of 10.12.2019, BGBI I p. 2115, the solidarity surcharge was reduced in a first step for low and medium incomes from the 2021 assessment period. Due to the significant increase in the exemption limit for the solidarity surcharge, the solidarity surcharge will no longer apply for the majority of wage and income tax payers from 2021. This applies to all cases in which the income tax or wage tax defined in more detail in the Solidarity Surcharge Act 1995 does not exceed the amount of EUR 16,956 (single assessment) or EUR 33,912 (joint assessment).
Mitigation zone
To avoid a jump in the tax burden, a mitigation zone follows the exemption limit in which the solidarity surcharge is not levied immediately at the full rate of 5.5 percent. This affects cases in which the income tax or wage tax defined in more detail in the Solidarity Surcharge Act 1995 amounts to between EUR 16,957 and EUR 31,527 (individual assessment) or between EUR 33,913 and EUR 63,055 (joint assessment).
Inaccurate assessments
In a large number of cases, the technical implementation of this change in the law has resulted in the advance payments for the solidarity surcharge continuing to be updated in the unchanged and therefore incorrect amount.
Reduction of advance payments
In view of the short period remaining until the next due date for advance payments for income tax, 10.03.2021, it was decided at state level to reduce the advance payments previously set up to an amount of EUR 433.54 (single assessment) or EUR 867.08 (joint assessment) to EUR 0.00.
Adjustment of advance payments
In the cases of the so-called mitigation zone, in which a solidarity surcharge of between EUR 233.16 and EUR 433.54 (individual assessment) or between EUR 466.32 and EUR 867.08 (joint assessment) was previously assessed, you will receive a new assessment of advance payments for the solidarity surcharge for the first due date on 10.06.2021 and the subsequent due dates (10.09.2021, 10.12.2021).
Flat-rate withholding tax - How can the need for declarations in the KAP investment account be reduced?
The Federal Ministry of Finance provides information on the options available to taxpayers. More
Technical information from the BMF on withholding tax
Frequently asked questions on withholding tax (this link will take you to the portal of the tax offices). In the FAQ you will find answers to the most frequently asked questions, e.g. under the search terms "flat-rate withholding tax" or "non-assessment certificate".
On January 1, 2021, changes to income tax for people with disabilities came into force:
- the doubling of l ump sums for people with disabilities and, for the first time, the granting of a lump sum for people with disabilities with a degree of disability of at least 20,
- the waiver of additional eligibility requirements for the granting of a lump sum for people with disabilities with a degree of disability of less than 50
In addition, the lump sum for care was increased from 924 euros to 1,800 euros. In the case of home care for people who are classified in care grades 2 and 3, the carer is also granted a lump-sum care allowance of €600 and €1,100 respectively.
These changes to the Income Tax Act will save many people with disabilities the time-consuming task of providing individual proof of their disability-related additional expenses. In addition, the services of family carers will be more highly valued and personally recognized.
The tax offices will automatically take into account the doubled lump sums for people with disabilities in the wage tax deduction procedure for employees. If a lump sum for people with disabilities has already been taken into account as an allowance in the wage tax deduction procedure, no new application for wage tax reduction needs to be submitted to the tax office of residence. The tax authorities incorporate the doubled lump sums for people with disabilities into the electronic wage tax deduction features (ELStAM) as quickly as possible. In most cases, employers will then be able to take the higher tax allowances into account from March 2021.
Employees who wish to have a lump sum for people with disabilities taken into account for the first time for the monthly wage tax deduction must notify the tax office responsible for their place of residence by submitting a one-off application for a wage tax reduction (please enclose the relevant evidence). This application can be printed out from the Federal Tax Administration's forms management system(https://www.formulare-bfinv.de) under "Steuerformulare / Lohnsteuer (Arbeitnehmer)" and can be submitted by post or electronically to the tax office of residence.
This also applies in cases in which a lump sum for people with disabilities could not previously be granted because the legal requirements for this were not met (e.g. cases with a degree of disability of 20 or cases with a degree of disability of less than 50 without the previously necessary additional eligibility requirements).
A new electronic data transmission procedure for tax-free allowances and reimbursements in the context of pension expenses has been introduced for assessment periods from 2016.
The certification procedure in accordance with Section 10 (4b) sentences 4 - 6 EStG (PDF)
Information from the Baden-Württemberg Ministry of Finance
Important information on the flat-rate energy allowance for pensioners in the 2022 income tax return
If you are a pensioner and have applied for the flat-rate energy allowance for pensioners in December 2022 through
- the Pension Service of Deutsche Post AG or
- the German pension insurance Knappschaft-Bahn-See or
- the agricultural pension fund,
the amount paid out does not have to be declared in the income tax return for 2022 as an exception. Your tax office will automatically receive an electronic notification of the payment and will automatically take this energy price lump sum into account when determining your income tax for 2022.
Information sheet from the Baden-Württemberg Regional Tax Office (PDF) on proving the lower common value (market value)
Here (PDF) you will find information on the most frequently asked questions on the subject of "non-profit status".
BMF letter dated 27.07.2016 (PDF) on pension schemes under the second pillar of the Swiss pension system (occupational pension scheme); income tax treatment of contributions and benefits.
Legal changes to the tax treatment of contributions to the Swiss pension fund from 2016.
The notification forms to be used from January 1, 2018 can be found on the websites of the Baden-Württemberg tax offices under "Services" - "Forms" - "Real Estate Transfer Tax".
Household-related employment relationships and household-related services, care and craftsmen's services
Information from the Baden-Württemberg Ministry of Finance - as at: October 2017
BMF letter dated November 9, 2016 (PDF)
Who can claim which costs for tax purposes?
Information from the Federal Ministry of Finance
The OFD is the competent authority for the notification procedure regarding calamity uses in accordance with Section 34b EStG. Forms and further information on applying for tax relief for calamity use can be found here.
- Leaflet from the Chief Finance Directorate on the subject of "Proper cash bookkeeping (PDF)
- Leaflet from the Chief Finance Directorate on the obligation to issue receipts (PDF)
- Leaflet from the Chief Finance Directorate on cash management in the cab and hire car sector (PDF)
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Notification of the use of electronic recording systems in accordance with Section 146a (4) AO:
There is an obligation to notify the responsible tax office of the use of an electronic recording system in accordance with Section 146a (4) AO.From 01.01.2025, the electronic transmission option via the "My ELSTER" program and ERiC interface will be available for this purpose. Alternatively, the notification can be made by uploading an XML file to elster.de.
Further information can be found in the BMF letter dated 28.06.2024.
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Use of a certified technical security device:
Section 146a of the German Fiscal Code (AO) was introduced with the Act on Protection against Manipulation of Digital Basic Records of December 22, 2016 (BGBl. I p. 3152). Accordingly, from January 1, 2020, there is an obligation to protect every electronic recording system used within the meaning of Section 146a (1) sentence 1 AO in conjunction with Section 1 sentence 1 Kassensicherungsverordnung and the digital records to be kept with it with a certified technical security device (TSE).
Income tax treatment of child day care (PDF)
Information from the Federal Ministry of Finance dated November 11, 2016
Deduction of health and long-term care insurance contributions from 2010
Information from the Baden-Württemberg Ministry of Finance
Main features of the taxation of musicians and singers (PDF)
Information from the Baden-Württemberg Regional Tax Office from May 2024
Information on the maternity pension
Information sheet (PDF) (from the Baden-Württemberg Regional Tax Office) on the tax assistance obligations of notaries - in the areas of real estate transfer tax, inheritance tax (gift tax) and income tax - as at: February 2022
Pension taxation from 2005
Taxation of retirement income - current tip from the Federal Ministry of Finance
Tax tips for senior citizens - current tip from the Baden-Württemberg Ministry of Finance; as at: July 2017
Retirement income calculator - income tax calculation for senior citizens from the Bavarian State Tax Office
In order to recognize the tireless efforts of employees in hospitals, nursing homes and outpatient care services during the coronavirus pandemic, the German government has presented a draft for a Fourth Coronavirus Tax Relief Act. According to the bill, certain special payments to nursing staff, which were granted on the basis of federal or state regulations, are to be tax-free up to a total amount of EUR 3,000. You can also find more information in our fact sheet (PDF)
Application letter and sample (PDF) for donation receipts
Information sheet (PDF) (from the Baden-Württemberg Chief Finance Directorate) for executors of wills and estate administrators in the field of inheritance tax