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Tax 2023: From home office flat rate to child benefit - that should change

2022-09-20T05:15:02.037Z


Tax 2023: From home office flat rate to child benefit - that should change Created: 09/20/2022, 07:00 By: Carina Blumenroth The federal cabinet has passed the government draft for an inflation compensation law. Among other things, it is about child support. Everything is becoming more expensive: groceries, electricity and gas – the federal government has decided on relief packages, among other


Tax 2023: From home office flat rate to child benefit - that should change

Created: 09/20/2022, 07:00

By: Carina Blumenroth

The federal cabinet has passed the government draft for an inflation compensation law.

Among other things, it is about child support.

Everything is becoming more expensive: groceries, electricity and gas – the federal government has decided on relief packages, among other things, to absorb a few costs.

The third pack is coming soon.

Perhaps you are already one of those who have received the 300 euro energy cost allowance from another relief package?

However, all this is probably not enough for citizens to make ends meet.

Tax changes are also planned from 2023. The federal cabinet passed a corresponding government draft on September 14.

Tax 2023: Goal of Federal Minister of Finance Christian Lindner

According to the draft law, this should change with regard to taxes

A gradual increase in the basic allowance is planned.

The first increase is expected to come into effect on January 1, 2023.

The increase should be 285 euros, there would then be a total basic allowance of 10,632 euros.

A further increase of 300 euros is planned for 2024.

Furthermore, the so-called top tax rate (42 percent) is to be changed:

so far

2023

2024

Top tax rate (42 percent)

from 58,597

from 61,972

from 63,515

The so-called rich tax (45 percent) should remain the same.

This is 277,826 euros.

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An overview of other planned changes:

  • Increase in child benefit |

    from 2023: 237 euros, from the fourth child 250 euros per month

  • Increase in child allowance |

    applies to each parent


    retrospectively for the year 2022 increased by 80 euros to a total of 2,810 euros


    from 2023: 2,880 euros


    from 2024: 2,994 euros

  • Increase in the maximum maintenance rate to 10,347 euros

  • Reduction of VAT on gas (temporary)


    from 19 percent to seven percent (from October 2022 to March 2024)

  • Increase in the home office flat rate to 1,000 euros

According to

Der Spiegel

, the reduction in VAT for gas will cost the state around eleven billion euros by March 2024.

The tax cuts are to be passed on from companies to consumers.

On September 14, the federal cabinet passed a draft law for the 2023 tax changes. © Marina5/Imago

Promotion of solar systems with the annual tax law

Solar systems on the roofs of private houses should be promoted.

In this context, the delivery and installation of photovoltaic systems should be exempt from sales tax.

Income from operations should also be exempt from income tax up to a certain level.

Tax 2023: Contributions to pension insurance should be tax deductible

As early as next year, contributions to pension insurance should be tax-deductible.

According to current law, this would not be the case until 2025.

This is already anchored in the coalition agreement of the traffic light government.

The background to this is a ban on double taxation – currently both income and pension contributions are taxed.

Tax tricks: How to save money on your tax return

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What happens next with the tax changes in 2023

The federal cabinet has launched the draft law, now the Bundestag and Bundesrat have to vote on it before a result can be announced.

Results from the 14th subsistence level report and the 5th tax progression report could also be included.

These are expected in autumn 2022.

Source: merkur

All life articles on 2022-09-20

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