Wage tax guidelines 2023
Wage tax guidelines
Amended and updated wage tax guidelines/LStR 2023 have been in force since 1.1.2023. In addition to the incorporation of new BMF letters, the new guidelines also contain various changes in content.
Secondary occupations
Income from sideline activities as an exercise instructor/trainer, etc. is tax-free up to the amount of € 3,000.00 (§ 3 No. 26 Income Tax Act/EStG) per year. In addition, part-time voluntary activities for a non-profit corporation are tax-exempt up to the amount of € 840.00 (§ 3 No. 26a EStG). R 3.26 para. 2 LStR 2023 contains a clear definition of when such a "part-time activity" exists. According to this, an activity with a regular weekly working time of a maximum of 14 hours is considered to be part-time.
Attention
The regulation on wage-tax-free attentions is subject to a significant restriction as a result of the amended wage tax guidelines. According to R 19.6 para. 1 sentence 2 LStR 2023, gifts of up to € 60.00 are only tax-free if they are granted for the benefit of the employee or a relative living in the same household as the employee. For example, wedding gifts from the employer to a child not living in the employee's household are not covered by the tax exemption.
Reverse family home journeys
Reverse family home journeys are journeys by an employee's relatives to his or her second home at the place of employment. According to BFH case law, expenses for such trips do not belong to income-related expenses. In the LStR 2023, the tax authorities allow these travel expenses to be deducted as income-related expenses if the employee is prevented from traveling to his family home for work-related reasons (R 9.11 para. 6 no. 2 sentence 3 LStR 2023). In these cases, a tax-free employer reimbursement is also permissible.
Free apartment
If the employer provides his employee with an apartment free of charge or at favorable rental conditions, the non-cash benefit is taxable. The valuation of this non-cash benefit is based on the rental value customary in the locality. No tax liability exists if the employee pays at least two-thirds of the customary local rent and the net rent does not exceed € 25.00/sqm. The LStR 2023 clarify that the € 50.00 exemption limit or, alternatively, a wage tax lump sum (Section 37b (2) EStG) can also be claimed on the taxable non-cash benefit (R 8.1 (6a) sentence 3 LStR 2023).
Status: April 26, 2023
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