Entertainment Newsletter Law & Taxes: Get more work tax-free
Google, Facebook and Amazon Could Be Forced to Pay Billions More in Tax Under These Proposals
New measures could see tech giants paying corporate taxes on profits where they operate and they will be unable to shift them to tax havens. Governments have been under an increasing amount of public pressure to clamp down on the tax avoidance strategies over the last few years. The new system is ready to be implemented if political agreement can be reached next year, the Organisation for Economic Co-operation and Development (OECD) said. Whether the deal can be struck will be one of the first big tests for the next U.S. president after November's election.
The more employees earn, the higher their personal tax rate. However, there are tax-free extras that the employer can donate. Both sides often benefit from this.
A quarter of Germans ride bicycles more often because of Corona, shows a study by the Federal Ministry of Transport. To ensure that employees can get to work infection-free, some employers give them a company bike. This financial subsidy is usually tax-free if it is granted in addition to the previous wage - unlike a normal salary increase.
Because the company bike is one of the additional company services that are not taxable as a pecuniary benefit. That distinguishes it from the privately used company car. The benefit for the company bike, which was originally limited to the end of 2021, has now been extended to the end of 2030.
judicial authority defends itself against DFB criticism of tax raid
The DFB had recently criticized the tax raid by the Frankfurt / Main public prosecutor, but the authorities rejected it. "Tax evasion is not a trivial offense, a possible 'deal' with the tax authorities a year later does not remove the criminal liability of the offender." © picture-alliance Tax raid at the DFB: judicial authority rejects the association's criticism. This was announced by the judicial authority at the request of the SID.
Video: This book is worth 8.5 million euros (Reuters)
Many employers use these and other tax-free additional benefits to give their employees something extra without the tax office collecting a large part of it. Often no social security contributions have to be paid, so that the salary increase sometimes comes in in full. This benefits not only the employee but also the employer, who then also saves his share of the social security contributions.
However, these favorable rules only apply to services that the state deems worthy of funding. These include grants for childcare costs for employees with families. Under certain conditions, these grants are unlimited tax-free. In other cases, upper limits apply. You can find out more about the exact rules in the current Law & Taxes newsletter of WirtschaftsWoche.
In addition, employers have other options for tax-free benefits, such as employee discounts on their own products or vouchers for benefits in kind. Often the employees do not even know that there are such tax-free extras. It is therefore worth checking with your employer.
You can find more tips in the current newsletter Law & Taxes of WirtschaftsWoche. You can test the newsletter for four weeks free of charge. It then costs 7.90 euros per month. An investment that you can quickly recover, if even one tip is feasible for you. And there will be more - we are sure of that.
Fact Check: Will Joe Biden Raise Taxes if Elected President? .
President Donald Trump repeatedly has said that former Vice President Joe Biden will raise taxes for "almost all American families" if he's elected president.Joebiden.com states that Biden will not raise taxes for "a single person making under $400,000 per year" and will order more than one-dozen tax cuts to working families if elected president. Averaging to $620 to middle-income earners according to CNBC. To be a 1 percent top earner in 2020 in the United States, you would need to make $361,020 per year. However, Biden's plan focuses mainly on increasing taxes for those who make more than $1 million per year, according to a Tax Policy Center analysis.