Tax and social contribution free corona payments in Germany
No taxes are levied on bonus payments and benefits in kind.
According to the German Federal Ministry of Finance, no taxes are levied on bonus payments and benefits in kind up to EUR 1,500 to employees. This should reward those who are at the front line of the coronavirus (COVID-19) crisis.
The press release of the Federal Ministry of Finance of 3.4.2020 points out that employers can now pay out allowances and benefits to their employees up to an amount of EUR 1,500 tax-free or grant them as benefits in kind. This covers payments between 1 March 2020 and 31 December 2020.
The prerequisite is that the payments are made in addition to the salary which is already owed.
According to a statement of the Ministry of Finance Baden-Würtemberg, the tax exemption applies to all employees since it is not possible to differentiate by occupation.
Find out more here.
See our Coronavirus (COVID-19) feature for more information generally on the possible legal implications of COVID-19.
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