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Sabbatical and save on taxes – this is how it works 

2022-03-03T14:31:30.662Z


Sabbatical and save on taxes – this is how it works  Created: 03/03/2022 15:18 By: Franziska Kaindl Many employees long for a longer break. © Martina Kovacova/Imago Employees can take a longer break with a sabbatical. If you do it right, you can also secure tax advantages. Many people dream of a trip around the world or a longer break - but often work commitments and financial matters stand i


Sabbatical and save on taxes – this is how it works 

Created: 03/03/2022 15:18

By: Franziska Kaindl

Many employees long for a longer break.

© Martina Kovacova/Imago

Employees can take a longer break with a sabbatical.

If you do it right, you can also secure tax advantages.

Many people dream of a trip around the world or a longer break - but often work commitments and financial matters stand in the way.

If you don't want to quit right away, you can talk to your employer about a sabbatical*.

This is unpaid special leave or a limited time-out, which usually lasts between three and twelve months.

With the right strategy, you can not only finance your time off, but also save on taxes at the same time.

How to finance a sabbatical

The magic word is:

working time account

.

And this is how it works: During the savings phase, the employee waives part of his wages while working the same amount.

The unpaid salary ends up on the working time account, also known as the

working time

account.

However, this does not work without the employer's consent, as you have no legal right to it.

Also important: It must be a

long-term working time

account so that the tax office recognizes the model.

It doesn't work with flexi or flextime accounts, for example.

Also interesting

: Five legal tricks for your tax return: It's so easy to get your money back now.

A working time account brings these tax advantages

During the

savings phase

, payments into the working-time value account remain

tax- and social security

-free .

The remaining salary, on the other hand, is taxed at a lower tax rate, since a lower tax rate applies to the lower gross salary.

In addition to parts of the salary, employees can also pay in overtime or bonuses.

Taxes on the money are only incurred in the payout phase during the sabbatical.

However, the reduced tax rate

also applies to these

, so that the paused employee of the so-called "

cold progression

“ can escape.

Another advantage: Since the employment contract continues, the contributions to the statutory pension, nursing care and health insurance will continue to be paid, so that you will continue to have social security.

Also read

: Tax return: With these costs you get a lot of money back.

What you need to look out for with a working time account

According to the online portal

karrierebibel.de

, the prerequisite for the

model

working time account is that the employee has been employed in his company for at least six months and that the company has more than 15 employees.

(fk) *Merkur.de is an offer from IPPEN.MEDIA.

Source: merkur

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