Germany MOF Clarifies Payroll Tax Treatment of Retroactive Adjustments to Social Long-Term Care Insurance Contributions

The German Ministry of Finance Nov. 28 posted BMF Letter No. COO.7005.100.3.13561669, clarifying the payroll tax treatment of retroactive adjustments to social long-term care insurance under the Long-Term Care Support and Relief Act (PUEG), for open cases. Topics covered include that: 1) the contribution rate discount under the PUEG is 0.25 percent per child, up to 1 percent, beginning with the second child, effective July 1, 2023; 2) the discount is reflected in the Income Tax Act, effective Jan. 1, 2024, and the digital data exchange procedure (DaBPV), since July 1, 2025; 3) employers must retrieve initial data from DaBPV ...