News at a glance

Company bicycle for private use – what taxation rules apply?

Every employer can provide its employees with a company bicycle for private use free of charge or at a reduced price. The resulting benefit in money’s worth is then part of the taxable wages.

So-called pedelecs are operated with a max. 250 watt motor and are limited to a speed of 25 km/h. These bicycles do not have to be registered or insured and are classified as bicycles under traffic law. Therefore, the same conditions apply under payroll tax law as for a normal bicycle without motorization.

The S-pedelecs can reach speeds above 25 km/h (up to 45 km/h, motorization 250 watts +) due to assisted motorization. For this reason, these bicycles are treated as motor vehicles and the taxation is based on the regulations of company car taxation. Therefore, the surcharge of 0.03% of the list price per distance kilometer for the trips between home and the first place of work must also be taken into account as a non-cash benefit.

Read more

Überbrückungshilfen / Bridging Assistance II and III: Proactive Design and Use of Opportunities

The current decisions of the federal government to extend the closures of restaurants and hotels, as well as the restrictions on retail trade, are causing enormous frustration among the entrepreneurs affected. Many hopes have vanished and major (financial) worries are becoming even greater.

It is all the more important now to really make use of all the options offered by the state’s Bridging Assistance in a proactive and goal-oriented manner!

In particular, the Bridging Assistance II and III are not mutually exclusive, but intertwine. Even when Bridging Assistance II has already been applied for, costs and expenses for digitization and hygiene measures, for example, which have already been incurred in the past period from March 2020, can be taken into account via Bridging Assistance III.

Find an overview of how and which costs can be taken into account under the time aspect:

Read more

Casual landlords – Airbnb & rental portals targeted by tax authorities!

INSIDER online event on March 24, 2021 on the topic.

Due to the greater response to the article “Airbnb – The tax office knows who you rented to last summer!” – we are once again expanding our comments to include the following points:

After we have so far dealt in particular with the issues surrounding the investigative measures of the German tax authorities and the resulting tax obligations or consequences under criminal tax law, this time we will address the more unknown secondary consequences.

  • What is the city tax?
  • What is residential misappropriation?
  • What will I face should there be a residential misappropriation?
  • Am I also affected if I have rented out on portals other than Airbnb (Fewo-Direkt, Booking, Naturhäuschen, 9flats, BestFewo)?
Read more

Introduction of short-time work by instant notice of dismissal pending a change of contract ?

Especially in the Corona pandemic, many employers have discovered short-time work as an effective means of bridging this difficult phase. Nevertheless, short-time work cannot simply be imposed by the employer.

Rather, a legal basis is required. This can result from a collective agreement, a works agreement or the employment contract. In case none of these apply, the employer must reach an agreement with each individual employee on the introduction of short-time work.

However, if the employee refuses to conclude a corresponding agreement, the employer faces difficulties.

Read more

Überbrückungshilfe III / Bridging Assistance III – Background Information & Overview

Überbrückungshilfe/ Bridging assistance –
improved, expanded and topped up!

We have summarized the most important points for you in the following text.

A term sheet and annex have been published for Überbrückungshilfe/ Bridging Assistance III, as well as an overview of the planned simplifications and increases to Bridging Assistance III.

The application is to be made via the same portal as Überbrückungshilfe I & II/ Bridging Assistance I and II and will be possible in the course of February 2021. Applications open Feb. 10 and close Aug. 31, 2021.

Read more

VAT change & adjustments: Return to 19% or 7% from 01.01.2021!

On 31.12.2020 the low tax phase of the VAT ended. For all transactions carried out from 01.01.2021, the former VAT rates of 19% or 7% will apply again.

However, the reduced rate of 7% will be applied to restaurant and catering services (excluding beverages) in the period from 01.01.2021 to 31.12.2022.

In addition to practical implementation difficulties, the temporary tax rate reduction has given rise to numerous issues in terms of substantive law.

We have summarized all questions and answers on the changes and adjustments to VAT for you!

Read more