OFD Rheinland Adopts Assessment Provision For Tax-free Payments In Kind

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Accountant Monika Nadler from Brunswick informed the judge of the German urteilten with regard to the taxation of gifts and tank vouchers last year repeatedly against the financial administration. Now she has spelled out OFD Rheinland with a decree, as such benefits in kind will be assessed by the tax authorities. The Brunswick accountant Monika Nadler reports on the current situation. Employers do monthly material donations amounting to up to 44 euros their employees, without any income tax or social security contributions on them to pay. A small birthday gift or regular contributions at low altitude are possible without additional load.

The Bundesfinanzhof decided that this arrangement in various designs on gifts and fuel vouchers to be applied in the year 2010. For smaller employers which clearly notice tax burdens, this legal situation, which makes a variety of benefits tax free, is very gratifying. With the Oberfinanzdirektion Rheinland responded for the first time the Treasury on the equal rights situation, which in the aggregate a significant tax income escapes him. According to a current Decree of the Directorate General of financial the haircut by four percent to accounted for a large proportion of the remuneration in kind tax exempt by the BFH. How high the tax value of a thing cover to apply is determined after its final consumer price less ordinary discounts. To facilitate management, a lump-sum deduction of 4% on all final consumption prices – the so-called haircut applies here. The current adoption of the Oberfinanzdirektion Rheinland excludes the following remuneration in kind by the application of the valuation discount: vouchers with limited amount of all payments in kind, which will be charged to the employer by reimbursement of the costs.

Money donations, provided that they may be used only for a predetermined purpose. In consequence of this assessment scheme is advise employers and employees to be careful that remuneration in kind go beyond not 44 euro a month. Is this exemption only by a penny exceeded, is automatically taxable the entire thing cover. The tax structure of incentives and benefits is not straightforward. Monika Nadler is committed as a tax consultant for many years, to optimize the use of these and other tax possibilities. She will be happy provide comprehensive advice. Press contact Monika of n tax advisor Tang mountain. 1 38106 Braunschweig Tel.: 05 PM 31 / 2 33 50 77 fax: 05 31 / 2 33 50 79 email: Homepage:

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