Germany Posts FAQs on Proposed Tax-Free Relief Bonus for Employees

The German Government April 21 posted online FAQs on a legislative proposal for a tax-free bonus for employees, under a relief package. The FAQs include that: 1) employers could opt to pay employees a relief bonus of up to 1,000 euros (US$1,174) free of individual income tax and social security contributions; 2) employers opting to pay the bonus could deduct it for tax purposes as an operating expense; 3) employees wouldn’t need to apply to their employer for the bonus; 4) the bonus would be paid in addition to salary, and not as deferred compensation, and would be part of ...