Federal Finance Minister Christian Lindner (FDP) on Friday (September 30) during the plenary session in the German Bundestag
Photo: picture alliance/dpa | Bernd von Jutrczenka
From BZ/dpa
Employers can pay their employees up to 3,000 euros in tax-free bonuses to cushion high inflation in the coming years. The Bundestag decided on Friday that such bonuses will not be subject to income tax until the end of 2024.
However, it is unclear how many employers will make use of the option and actually pay out bonuses. Employer President Rainer Dulger had recently emphasized that not all companies could afford the one-off payment.
Even during the Corona crisis there was the possibility of a tax-free premium. However, it is not known how many employers paid them and in what amount.
The prerequisite for tax exemption is that the money is paid in addition to wages. In addition, the employer must make it clear that this is a lump sum in connection with the price increases. In the case of social benefit recipients, the premium should not be taken into account as income.
Furthermore, the Bundestag votes to reduce the VAT on gas from 19 to 7 percent. The discount is limited to the period from October to March 2024 and is intended to save gas consumers around 13 billion euros in additional costs.