Income tax: planned changes in 2015

In April 2014, the Federal Ministry of Finance presented a draft to amend the wage tax guidelines. We have summarized the most important changes contained in it for you in this article.

Exemption limit for non-cash benefits rises to 60 euros

On special personal occasions of the employee, such as birthdays, weddings or silver wedding anniversaries, births, baptisms, communions or confirmations of children or visits to the sick, it is customary in many companies for the employer to present a gift. Until now, an exemption limit of 40 euros applied to these gifts. From 2015, this exemption limit is to be raised to 60 euros.

Exemption limit for working lunches also rises to 60 euros

The exemption limit for working lunches with employees will also be raised from 40 euros to 60 euros from 2015. It should be noted that the working lunch takes place in the overriding interest of the company as part of an extraordinary assignment.For the above-mentioned exemption limits, the following special features of tax law must still be taken into account for income tax in 2015:1. The exemption limit for gifts in kind is only applicable to gifts in rem, but not to gifts in money.2. The exemption limits refer to gross amounts, VAT is to be includedin the calculation of the exemption limits 3. If an exemption limit is exceeded, the entire value of the benefits in kind is taxable as a non-cash benefit. In this case, the employer has the option of taxing the non-cash benefit at a flat rate of 30 percent.

Exemption limit for company events remains unchanged at 150 euros

The exemption limit for company events, which has been in place since 1993, has not been increased, which has been heavily criticised by both the Association of Taxpayers and the German Association of Tax Consultants. They had proposed an increase to 160 euros. Furthermore, the associations complained that a recent ruling by the Federal Fiscal Court (BFH) was not taken into account. According to this, only expenses that actually lead to an advantage for the employee should be included in the calculation of the exemption limits.

Conclusion: No major changes in wage tax in 2015

In summary, it can be said that although the increased exemption limits bring minor advantages in individual cases, they do not really have an effect on the wallets of the income taxpayers – unfortunately, more than a more generous birthday present or a second helping at a working lunch are not possible. Major changes, such as the gradual increases in the basic tax-free allowance in 2013 and 2014 or the changes in travel are not yet in sight.

We look forward to your comment

Image source: Fotolia.com, Photographer: Marco2811