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- Title
§ 34 EStG bei Überstundenvergütungen.
- Abstract
The article deals with the question of tariff reduction according to § 34 of the Income Tax Act (EStG) for the compensation of overtime. It is determined that overtime compensation, which is paid over a period of more than twelve months, must be subject to reduced taxation according to § 34 para. 2 no. 4 half-sentence 2 EStG. The case refers to plaintiffs who applied for a tariff reduction according to § 34 EStG for overtime compensation for the year 2016. The tax court has ruled that the overtime compensation paid in the disputed year must be subject to reduced taxation according to § 34 EStG. The appeal of the tax office to the Federal Fiscal Court was unsuccessful. The text deals with various legal principles regarding compensation for multi-year activities. It is emphasized that the remuneration must be paid for a period of more than twelve months and over several assessment periods. In addition, the concentration of compensation must be for economic reasons. The mentioned principles also apply to overtime compensation paid over a period of more than twelve months. In the present case, overtime compensation was paid to a plaintiff for the years 2013 to 2015, which is why the tariff benefit was granted according to § 34 para. 2 no. 4 EStG. Finally, it is pointed out that national tax law is not automatically excluded or limited when shares are transferred free of charge.
- Subjects
GERMANY; OVERTIME pay; CORPORATE taxes; INCOME tax; TAX assessment; TAX protests &; appeals; TAX courts; TAX laws; OVERTIME; TARIFF
- Publication
FinanzRundschau, 2022, Vol 104, Issue 19, p887
- ISSN
2567-4765
- Publication type
Article
- DOI
10.9785/fr-2022-1041907