Tax relief packages in Germany 2022

[scook17 163]

First Relief Package:

• EEG Surcharge on Electricity to be abolished June 1, 2022. Electricity Taxation is therefore 3.7ct less.
• Lump Sum allowance for employees increased from 1000 to 1200.
• Income tax personal tax free allowance increased from 9984 to 10347.
• Commuting allowance for use of own car increased to 38c per km.
• Social Security Recipients to get 100 Euros.
• 20 Euros per month for children in poverty until child allowance kicks in.
• Increase in minimum wage to 12 Euros per hour.
• Home office flat rate of 600 Euros claimable extended by one year
• One off heating bill subsidy for those on housing benefit, 135 single, 175 couple, 115 students.
• Care workers can received one off 3000 Euro bonus tax free.

 

Second Relief Package:

• 300 Euros for Employees
• 300 Reduction in pre-payments for Self Employed
• For 3 months, diesel and petrol tax will be reduced
• For 90 days, public transport tickets will cost just 9 Euros
• Social Security Recipients get 200 Euros instead of 100 Euros promised in first package.
• Families get 100 Euros per child.
• Energy 55 Mandatory in new buildings from 2023.
• From 2024, heating systems must use 65% Renewable energy.
• BEG scheme to replace 20+ year old gas boilers with alternatives such as heat pumps.

 

Employers:

• Losses can be carried back 2022/2023 to the previous 2 years.
• 2022/23 investments can be depreciated using declining balance method
• Short term work benefits extended from March 2022 to end June 2022.

[scook17 163]

Does anyone know if the declining balance method of depreciation (in other words depreciate more at the beginning) also applies to vehicles? Currently they are depreciated to zero over six years, and then there is a balancing charge on residual value once replaced.

 

[scook17 163]

3 hours ago, scook17 said:

Does anyone know if the declining balance method of depreciation (in other words depreciate more at the beginning) also applies to vehicles? Currently they are depreciated to zero over six years, and then there is a balancing charge on residual value once replaced.

 

Actually I found the answer here

https://taxfoundation.org/new-accelerated-depreciation-policies-to-spur-investment-australia-austria-germany-new-zealand/

 

Answer is yes, and depreciation rate increases from 16.6% to 25% on vehicles.

[sumguy 105]

Thanks for the info. Btw., the 300 euro energy-cost reduction in pre-payments for self-employed/freelancers can't be claimed until September. The income tax pre-payment will have to be paid as usual for June 10th. There still seem to be some questions about how it all will work...

 

https://www.vgsd.de/viele-offene-fragen-300-euro-energiepauschale-profitieren-auch-selbststaendige/

[Krieg 14,542]

On 4/5/2022, 8:36:33, scook17 said:

 

• For 3 months, diesel and petrol tax will be reduced

 

 

It seems the reduction of the taxes on fuel didn't have the expected effect.  Yes, the price went down a bit, but not to the full extension it should have been.  I assume someone is pocketing the benefits.  Damn free markets.

[Dai 16]

Did anybody actually expect anything different? 
The interest rate for loans from my bank has gone up 12 times so far this year, the internet rate for savers is still negative. How much of the MwSt reduction was passed on? I didn’t lower my prices. 
For a 30c Tax reduction there was only ever going to be a few token cents passed on.