The German Ministry of Finance Sept. 28 announced Cabinet approval of a draft to allow tax-free bonus amounts for employees due to inflation. The agency clarifies that the measure would: 1) exempt up to 3,000 euros (US$2,937) in bonus payments above salary that an employer pays to an employee; 2) apply through Dec. 31, 2024; 3) specify employer documentation requirements; and 4) clarify in the social security and unemployment benefit laws that the tax-free amount isn’t income. [Germany, Ministry of Finance, 09/28/22]
Reference: View Press Release No. 23. View Index.