English News

Update Special benefits to employees up to EUR 1500 shall be free of tax and social security

The attached BMF letter of 26 October 2020 (IV C 5 - S 2342/20/10012 :003) replaces the first BMF letter of 9 April 2020.

Due to the Corona crisis, employers can grant their employees tax-free allowances and support up to an amount of EUR 1,500 in the form of grants and benefits in kind in the period from 1 March to 31 December 2020 in accordance with § 3 no. 11a EStG:

• This is subject to the condition that the aid and support to mitigate the additional burdens arising from the Corona crisis

         and

• be paid in addition to the salary that is owed in any case.

The tax-free benefits must be recorded in the wage account. 

For further details, please refer to the attached Federal Ministry of Finance decree dated October 26, 2020 (German language).

Please contact us for any questions.

Björn Christian Gerow

b.c.gerow@egsz.de

  Download

 Zur Übersicht