Tax law: What’s new in tax law besides home office?

Two days after the Bundestag, the Bundesrat also approved numerous new rules in tax law on 18.12.2020.
The law can now be forwarded to the Federal President for signature.

Key Facts

The Federal Council has approved new tax law rules, which will be submitted to the Federal President for signature.
Home office tax relief: Five euros per calendar day possible for 2020 and 2021, maximum 600 euros.
The lump sum for trainers will rise to 3,000 euros and the lump sum for voluntary work to 840 euros from 2021.
Tax-free employer subsidies for short-time working allowances will remain in place until the end of 2021.
The relief for single parents of 4,008 euros will be extended until 2022.
Tax improvements for rental income - limit for income-related expenses falls from 60% to 50%.
In future, losses from forward transactions can be offset up to EUR 20,000.

But what is new?
For example, the Bundestag decided to make it easier to work from home: taxpayers can claim an amount of five euros for each calendar day in 2020 and 2021 on which they work exclusively at home – up to a maximum of 600 euros. This applies even if the usual requirements for deducting costs for a home office are not met.
Associations and volunteers will be strengthened – another long-standing demand of the Federal Council: the so-called “Übungsleiterpauschale” (lump sum for exercise leaders) will increase from 2,400 to 3,000 euros from 2021, and the lump sum for volunteers from 720 to 840 euros. Simplified proof of donations is possible up to an amount of 300 euros.
Employer subsidies for short-time working allowances will remain tax-free until the end of 2021. There are also improvements for other allowances and support received by employees as a result of the Corona crisis, e.g. the care bonus: The tax exemption for payments of up to 1,500 euros, which is limited until the end of the year, will be extended until June 2021. This gives employers more time to process the coronavirus benefits in a tax-privileged manner.
The relief for single parents in the amount of EUR 4,008, which was introduced for a limited period in the Second Coronavirus Tax Assistance Act, has also been extended. The time limit will be lifted so that the increase will continue to apply from 2022.

The list of purposes in the tax code for non-profit organizations will be expanded to include climate protection, free radio and local beautification.
The tax-free non-cash benefit limit for all employees will also increase from 44 to 50 euros from 2022. For so-called non-cash remuneration cards, a clarification follows in a letter from the Federal Ministry of Finance.

With regard to the taxation of rental income, the regulation for residential space rented at particularly favorable rates is improving: Up to now, income-related expenses can only be claimed by the landlord in these cases if the rent is at least 60% of the local comparative rent. This limit decreases to 50%. This is intended to prevent landlords from increasing the rent for purely tax reasons.
Losses from forward transactions, in particular from the expiry of options, can in future be offset against profits and so-called option writer premiums up to 20,000 euros in the current calendar year – previously the maximum was 10,000 euros. Losses that have not been offset can be carried forward to subsequent years and offset against profits in the amount of EUR 20,000.
Losses from the derecognition of worthless assets or the so-called irrecoverability of a capital claim can be offset against income from capital assets up to EUR 20,000 per year. Here, too, it is possible to carry forward and offset unrecognized losses to subsequent years.

Other new regulations relate to the modernization of the VAT system and the fight against fraud in cross-border online trade, adjustments to current tax case law and the implementation of EU requirements.

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.