German Tax Updates in January 2025
2025.01.30
- Partial Income Method Can Enable Deduction of Income-Related Expenses for Capital Income
- Surprise Visit from the Tax Office: What to Bear in Mind During a Cash Register Inspection
- E-Mobility: New Tax Benefits to Make Company Provided Electric Vehicles More Attractive
1. Partial Income Method Can Enable Deduction of Income-Related Expenses for Capital Income
Capital gains are generally subject to a flat-rate withholding tax without deduction of income-related expenses. Shareholders with a material interest can opt for the partial income method for their dividends, in which case costs are deductible. According to the Federal Fiscal Court, an initially admissible application does not lose its five-year effect if the requirements are no longer met later.
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