As the New Year has come, changes in tax laws are enforced. We keep you informed about the most important changes: The income tax implications of pension insurance and pension continues to change by a step by step apprioach to deferred taxation.
The target is, by 2040, to have pension by 100% taxable. In parallel the deductible special expenses for pension insurance is increasing. So 80% of the employee's share of pension cost are deductabke special expenses in 2015.The maximum is € 20,000 for a
single person and € 40,000 for married couple. Who goes into retirement in 2015, pays taxes on 70% of the pension.
The kindergarten grants are now actually paid up to children's schooling. The finding of compulsory education has now become irrelevant.
In the evaluation of non-cash benefits now, beside the 96% method, the true and fair marekt value can applied. Of course, here is a clear documentation inevitable.
The tax threshold for such non cash benefits as well as for working lunch will be increased from 40 € to 60 €. The tax threshold for company parties rises to 150 €, the value of gifts should be included.
The BMF in its letter 30.09.2014 has brought some clarification of the travel expenses. Provision of meals on a business trips and temporary external assignment reamin evergreens. Accordingly, meals provided by the employer are NOT tax-exempted.. Tax-free are only the lump sums paid. This means in practice: If an employer is entitled to a lump sum a meal provided by the employer, value <60 €, the lump sum shall be reduced accordingly. The meal hereby is tax free. If the employer is, however, NOT entitled to a lump sum the fixed reference value, or, if meal has a value of from than 60 €, the full price is taxable.
The absence of more than 8 hours, even added together by repeated absences over the day, entitles to lump sum allowance. Does the absence go over midnight, the time can be added together and be transferred to the day ot the longest absence. Also regarding the return of clarity is given now. On a one-day official trip over midnight, the hours can be added to the previous day. On returning after midnight from multi-day mission, the after midneight hours can be counted as the day of departure.
When meals are provided shall be subtracted for breakfast € 4.80 and 9.60 for a lunch or dinner from the lump sum allowance. Under the new travel policy has also meals served in trains, ships or planes have to be counted as employer provided meals, which is deducted from the lump sum allowances.
