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Patrick Peters3 MIN READING TIME2018-12-11

E-service vehicles, Mietwohnungsbau and Co .: The state creates relief

Private individuals can look forward to tax relief and more child benefits. It is becoming more expensive, among other things, in long-term care insurance.

The new year brings some changes for taxpayers - some are positive, others not necessarily. In any case, it is important to deal with fiscal regulations at all times to know what relief or relief to a household.

Legislators want to improve the financial situation of families with the "Law on Strengthening and Relieving Relief for Families and Adapting Further Tax Regulations". In the framework, the child allowance for tax relief of income is raised in two steps. As of January 1, 2019, the allowance increases by 192 euros from the previous 7428 euros to 7620 euros and increases in the following year by the same amount to 7812 euros. The child benefit is also increased: for the first and second child there are 204 euros, for the third 210 euros and for each additional 235 euros. Similarly, the basic exemption increases the proportion of income of each taxpayer in Germany, to which the state does not levy income tax. He climbs to 9168 euros in 2019 and climbs in 2020 climbs to 9408 euros.

At the same time, the contribution rate will be increased by 0.5 percentage points via the "Law on the Adjustment of the Contribution Rate in Social Care Insurance 2019". As a result of the increase in the contribution rate, which has now been decided, the contribution rate will be 3.05 percent from January 1, 2019, which will be financed equally by employees and employers. Pensioners and the self-employed must independently raise the contribution rate to long-term care insurance.

The Mönchengladbach tax consultant Andreas Bartkowski (Schnitzler & Partner) also points out that the limits for the so-called midijobs are being widened. "They now apply to wages ranging from € 450.01 to € 1300 (previously € 850) for employment subject to social security contributions. For example, more employees with a low income should benefit from a reduced contribution. In doing so, Midijobber will acquire the same pension rights as if they had paid the full employee share into the pension insurance. "

Withholding tax has been under discussion for many years. Since 2009, this includes among other things capital gains tax. It is payable in private assets on capital gains - ie interest, dividends and income from certain insurance contracts, silent partnerships, options, futures and securities transactions, certificates and (limited) from investment funds - in the amount of 25 percent (26.35 percent with church tax) , Now the withholding tax on interest income is to be abolished with the establishment of the automatic exchange of information, even if a legislative initiative has failed for the time being. According to Andreas Bartkowski, however, it is suspected that investment income will in future be subject to normal collectively-agreed taxation, making it more expensive for investors.
There is also relief for (private) real estate investors. Nearly two million affordable housing units are missing in 77 major German cities, according to a new study commissioned by the Böckler Foundation. Therefore, the new rental housing construction is now funded. The purpose of this is to introduce a special write-off that can be used in the year in which the leased property is acquired or manufactured and in the following three years up to five per cent in addition to regular depreciation. The special depreciation is only granted if the acquisition or production costs do not exceed 3000 euros per square meter of living space in order to force the idea of ​​affordable housing. At higher costs, the special depreciation is limited to a maximum of 2000 euros per square meter of living space.

For the users of company cars results in e-vehicles also a tax relief. The one-percent rule is calculated from 2019 for e-cars only from half the gross list price. The reduction of the percentage from one percent to 0.5 percent for company car taxation for newly acquired electric and hybrid electric vehicles from 1 January 2019 until 31 December 2021 is envisaged. "This halves the monetary benefit for the private use of an electric company car, which leads to not inconsiderable tax benefits, depending on the price of the company car," says Andreas Bartkowski.