Political Parties Push for Home Office Tax Benefits: Union and SPD Propose Tax Incentives for Working from Home
In the midst of the ongoing COVID-19 pandemic, discussions about tax relief for home office expenses are set to take place in the Bundestag on Thursday. Finance politicians from the Union and SPD are advocating for tax relief for citizens working from home.
Antje Tillmann, the financial spokesperson of the CDU/CSU parliamentary group, has called for a general allowance for additional COVID-19 hardships, beneficial to all taxpayers. Tillmann believes that every employee or entrepreneur has had additional burdens in the last months.
Currently, it has been difficult for most employees to deduct additional home office expenses from their taxes. However, the German government introduced a simplified flat-rate deduction for remote work expenses in response to the pandemic. In 2020 and 2021, employees could claim up to €5 per day for up to 120 days of working from home, resulting in a maximum deduction of €600 per year. This flat-rate applies even if the employee does not have a separate room exclusively used as a home office.
If an employee has a dedicated room used exclusively as a workspace, they may be able to claim higher actual expenses, but this requires meeting strict conditions and usually proving the necessity and exclusive professional use of that room.
Lothar Binding, the financial spokesperson of the SPD parliamentary group, has suggested a way to consider the costs of home office without creating an unjustified administrative burden. The Federal Ministry of Finance is also considering further aid due to the corona pandemic, which includes tax measures.
The performances of employees, especially parents working from home, deserve special recognition, according to the Federal Ministry of Finance. However, the spokesperson for the Federal Ministry of Finance did not provide specific details about the proposed tax measures.
It is important to note that these tax benefits were part of adaptations made during the COVID-19 pandemic and might have changed after 2022. Employees should check the latest updates on the German Federal Ministry of Finance website or consult a tax advisor for the current rules. For more specific guidance, employees should verify with official German tax authorities or professional tax advisors.
Other finance politicians, including those from the business-oriented parties Union and SPD, are advocating for additional tax relief for home office expenses beyond the current flat-rate deduction. Antje Tillmann, the financial spokesperson of the CDU/CSU parliamentary group, suggests a general allowance for additional COVID-19 hardships, which could potentially benefit all taxpayers and acknowledge the additional burdens faced by employees and businesses during the pandemic.
