In Germany, there are always numerous reforms and regulations. Accounting, too, has to deal with new developments time and again – especially at the turn of the year. It’s not that easy to keep track of everything.
There are hardly any countries with as many regulations as Germany. This is the conclusion of a study by the
Companies have to implement new rules
For companies, however, this also means that new measures have to be implemented time and again. For example, the VAT rate (both the standard rate and the reduced rate) was temporarily reduced in 2020. This involved considerable effort for companies. That was not the only challenge: Dozens of regulations were passed through various relief packages.
Many new regulations have come into force
Numerous new regulations also came into force with the turn of the year 2022/2023. And many of the changes directly affect the finance department of companies. Here are a few examples:
- For the formation of accruals and deferrals, an option was introduced (even retroactively) in Section 5 (5) of the Income Tax Act. This gives companies new possibilities in accounting.
- The official non-cash benefit values 2023 have been announced. They are reviewed annually and adjusted to reflect changes in consumer prices. Inflation ensured that the values were raised. The official non-cash benefit values are of great importance for payroll accounting. The accounting department must ensure that the currently valid values are always applied.
- The foreign travel allowances 2023 have also been published. These allowances are particularly important for the travel expense reports of business trips abroad.
- Companies can pay a tax-free inflation compensation bonus in the period from October 26, 2022 to December 31, 2024 in addition to the wages already owed. However, in order for the bonus to actually be tax-free, various requirements must be met, especially with regard to documentation.
- Until mid-2023, companies will still benefit from easier access to short-time work allowance. This can be an advantage for companies that have, for example, significant supply chain problems.
- The artists’ social security contribution was increased to 5 percent from 2023 (previously 4.2 percent). Companies that pay corresponding contributions must observe the changed contribution rate.
- The limit for midijobs has been raised to 2,000 euros. This must also be taken into account when posting wages and salaries.
These are just a few examples of the diverse developments that companies have to deal with.
Keep track of accounting!
It is clear that companies need the help of experts here in order to stay up to date. Experienced accountants and tax advisors ensure that no opportunities are left unused in the many reforms and regulations. Errors in accounting must be avoided for compliance reasons alone.
As a partner in finance and accounting, we keep an eye on all regulations and implement them in our customer projects. External accounting service means: Gaining professional quality that is constantly adapted to the circumstances.
If you are interested in an outsourcing partnership, please do not hesitate to contact us! We look forward to hearing from you and will be happy to advise you personally and without obligation.
Image source: AdobeStock Photographer: chaylek
Author
Sylvia Meier
Guest Author
Sylvia Meier is a certified financial economist (FH) and has worked at the tax office, in consulting (Big Four firm), and for a specialized publisher. Today, as a freelance consultant, she supports companies and can demonstrate numerous publications, particularly on the topics of taxes, controlling, accounting, and finance.
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October 11, 2022
