Haufe Annual Conference: Taxes and Accounting

Legislative amendments adopted

• Law for an emergency tax investment program ("investment booster"):
  • declining balance depreciation, electric vehicles, corporation tax rates, research allowance.
• Annual Tax Act 2024 (JStG 2024):
  • Photovoltaic systems, e-balance sheet, construction withholding tax.
• Seventh ordinance amending tax ordinances
  • Properties of subordinate value.
  • Purchase price allocation, depreciation according to shorter useful life.
• Minimum Tax Adjustment Act (MinStAnpG)
  • Adaptation to OECD administrative guidelines.
  • Deferred taxes, license barrier, bureaucracy reduction.
• Act on the implementation of the CSRD Directive
  • Omnibus relief package: * Reduction of reporting obligations; postponement of *sustainability reporting.
• Act amending the Supply Chain Due Diligence Act.

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Further reform projects

• Bureaucracy reduction through the Fourth Bureaucracy Reduction Act (BEG IV):
  • Retention periods, transaction matrix for transfer pricing documentation (BMF).
• Location Promotion Act (StoFöG)
  • Improving financing conditions for companies
  • Facilitating investments in venture capital.

Legislation in the 21st legislative period
Tax law changes provided for in the coalition agreement

• for companies:
  Reduction in electricity tax and grid fees, corporation tax liability for all newly founded companies, increase in the minimum trade tax rate, combating the relocation of bogus registered offices to so-called trade tax havens;
• for employees:
  Introduction of a flat-rate working day allowance, creation of tax incentives for trade union membership;
• for families:
  Alignment of the relief effect of child benefit and child allowances, tax relief for single parents, introduction of a retirement savings account for children (so-called "early start pension");
• In addition:
  tax-deductibility of energy-efficient building renovations, reduction in bureaucracy.

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• Digitalization and automation of processes in the company.
• Retention obligations, e-mails as commercial or business letters.
• E-invoicing and reporting obligations in accounting.
• E-balance sheet - current developments, implementation in practice, taxonomies 6.8 and 6.9, FAQ.
• VAT in the Digital Age.

Current case law and pronouncements

• Intangible (digital) assets in the commercial and tax balance sheet, costs of customizing.
• Properties
  • including subsequent production costs due to expansion and significant improvement.
  • Maintenance expenses for repairs and modernization.
• Current asset receivables
  • Disputed receivables.
  • Maintenance reserve according to the WEG.
• Realization principle
  • Advance payments received and made.
  • Hand money payments (signing fees).
• Company car taxation
  • Rebuttal of prima facie evidence of private use,
  • Journeys between home and business premises.
• Non-deductible operating expenses
  • Partial deduction ban in accordance with Section 3c (2) EStG.
  • Representation, fines and conditions.
  • Interest on back payments and refunds of corporation tax and trade tax.

Current information on provisions and liabilities

• Provisions for contractual and public-law obligations
  • Maintenance and servicing.
  • Demolition / dismantling and substance preservation obligations.
  • Capitalization of corresponding claims.
• Provisions for onerous contracts.
• Pension provisions, discounting in the commercial and tax balance sheets.

Value added tax

• Mandatory e-invoicing in Germany.‍
• VAT in the digital age: e-invoicing at European level.
• The future of the series business.‍
• Reverse charge procedure.
• OSS taxation procedure; planned EU expansion of the special taxation procedure.

Wage tax

• Optimization through net wage models.
• Employee share ownership vs. securing company succession.
• Company car taxation 1% rule, logbook method, ban on private use.
• Company pension scheme - reduced taxation of capital payments.
• Tax law on travel expenses - first place of work and away work, double household management, business trips with a private car.
• Relocation costs, training costs.

Trade tax

• Changes to additions and deductions.
• Extended property reduction, ancillary activities that are detrimental to the reduction and those that are not.

Corporate income tax incl. international income

• Investment income and sale of shares - free float and box privilege.
• Loss deduction (Section 8c KStG), loss carryforward tied to continuation (Section 8d KStG).
• Income tax group.
• Hidden profit distributions and hidden contributions.

Business income tax

• Corporations & partnerships:
  • Tax implications of new BFH rulings.
• withholding tax:
  • Consideration of losses on the sale of shares and interest-free purchase price deferrals.
• Sale of shares in accordance with § 17 EStG:
  • Reversal losses through contribution to capital reserves for the purpose of debt repayment (cash circle).

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