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Energy flat-rate becomes taxable: when it comes and who benefits

2022-05-01T05:00:32.801Z


Energy flat-rate becomes taxable: when it comes and who benefits Created: 05/01/2022 06:53 By: Johannes Nuß, Felix Busjaeger As part of the 2022 relief package, there is a 300-euro energy allowance for employees in Germany. When the package comes now. Update from April 27, 2022, 12:41 p.m .:  The 2022 relief package is coming: The federal cabinet has decided on the planned aid measures to comp


Energy flat-rate becomes taxable: when it comes and who benefits

Created: 05/01/2022 06:53

By: Johannes Nuß, Felix Busjaeger

As part of the 2022 relief package, there is a 300-euro energy allowance for employees in Germany.

When the package comes now.

Update from April 27, 2022, 12:41 p.m .:

 The 2022 relief package is coming: The federal cabinet has decided on the planned aid measures to compensate for the high energy costs.

Among other things, politicians agreed on an energy price flat rate of 300 euros, a fuel discount, a Hartz IV subsidy and the child benefit bonus.

The multi-billion dollar aid package is intended to bring support to citizens in the midst of the Ukraine war.

With the energy flat rate, however, employees have to consider tax issues.

Energy flat rate: 2022 relief package decided – but the energy price flat rate of 300 euros is taxable

Berlin – Energy flat rate, fuel discount, child bonus, subsidy for low earners or 9-euro ticket: the relief package promises a lot, but can it keep all of that?

It doesn't matter whether it's in the supermarket, at the gas station or when you're dealing with the upcoming utility bill: life in Germany is becoming more and more expensive.

In order to support citizens in the difficult time, the federal government of Chancellor Olaf Scholz (SPD) announced the 2022 relief package in March as a reaction to Vladimir Putin's war in Ukraine.

An important part of it: the energy flat rate or energy price flat rate of 300 euros.

This is to be introduced together with other measures in the coming months.

After the 9-euro ticket is to be valid from June, Federal Finance Minister Christian Lindner (FDP) also expects the start date of the energy price flat rate to be delayed until June 2022.

300 euros energy flat rate: when the energy flat rate from the 2022 relief package will come

The 2022 relief package from politicians is intended to support the German population in the face of rising food prices and energy costs for gas, oil, diesel and petrol in Germany.

In particular, the announced energy flat rate of 300 euros is the focus of these considerations.

However, there is also a catch that revolves around the tax.

While Lindner expects the €300 energy fee to start in June last week, it is still not clear when the energy fee will be paid out.

Energy flat rate 2022: every employed person subject to income should benefit from it.

Christian Lindner (FDP) expects this in July.

(kreiszeitung.de montage) © Annegret Hilse/dpa/imago

The economy and other experts assume, however, that the payment of the lump sum will be made with the wage payments for the month of September, according to CDU circles.

There is a simple reason why there is no exact start date: The draft for the 300-euro bonus first has to go through the Bundestag and then through the Bundesrat in order to initiate the corresponding changes in the law.

Originally,

Business Insider

reported at the end of March that, according to internal government circles, the measure from the relief package should come as “as quickly as possible” – there now seem to be delays here.

Relief package 2022: Who will receive the 300 euro energy price flat rate?

While the 2022 relief package is intended to bring support to citizens in Germany with several measures, it is now clear that not every group will benefit equally.

Although the 9-euro ticket for bus and train or the tank discount for petrol and diesel should be available to everyone, the situation is different with the energy price flat rate of 300 euros: it is planned that every employed person who has to pay an income should benefit.

Pensioners are therefore generally exempt from the energy flat rate.

However, if they have a midi job that earns between 450 and 1300 euros a month, they will also benefit from the politicians' plans in the relief package.

Olaf Scholz's traffic light government is currently planning that the money from the energy price flat rate should be paid out by the employer as a salary subsidy.

"All employed persons who are subject to income tax (tax brackets 1 to 5) will be paid a one-off energy price lump sum of 300 euros as a salary subsidy," says the resolution.

For the self-employed, the advance tax payment is to be reduced instead.

In view of the skyrocketing energy costs in Germany due to rising prices for gas and electricity, one circumstance is particularly annoying for employees: the energy flat rate is taxable and only those who remain below the tax allowance benefit from the full amount of the support.

Energy flat rate taxable: Is the 300 euro of the energy flat rate net or gross?

As already mentioned, the 300 energy flat rate does not end up in the employee's account in full.

Because the energy flat rate is taxable.

Although the energy bonus is stated gross on the pay slip, income tax and social security contributions are still deducted from the 300 euro energy price flat rate.

According to a sample calculation by the federal government, the taxpayer who earns 3500 euros gross and is in tax class 1 has 159 euros net after taxing the energy price flat rate.

In view of the sharp rise in energy prices in Germany, it could be a slap in the face for those affected that the energy price flat rate of 300 euros will be taxable - especially since inflation in Germany rose to over seven percent last March and was thus at an all-time high.

When will the energy flat rate be paid out in 2022?

Christian Lindner expects to start in June

In addition to the EUR 300 energy flat rate, the 2022 relief package includes a number of other measures.

Among other things, a 9-euro ticket, a tank discount for diesel and petrol, a children's bonus and a subsidy for Hartz IV are planned.

While the political reaction last March came a few weeks after the outbreak of war in Ukraine, it is now clear that the measures cannot be introduced without a great deal of political effort.

The 300 euro energy flat rate comes later than expected, households will have to get by without financial support from the state until then - even if Christian Lindner had promised quick support.

The fuel discount and the fuel price brake for petrol and diesel will also be delayed.

Criticism of the 2022 relief package: who will benefit from the relief package – there is a risk of injustice

The 2022 relief package is intended to provide support for numerous citizens in serious need - that's the plan.

However, the fact that not all citizens will benefit equally caused sharp criticism of the relief package in the first few days.

The President of the Social Association of Germany, for example, spoke of "gross injustice" to the

picture

.

While taxpayers will benefit from the energy flat rate, mini-jobbers are currently falling through the cracks because they are not classified in tax brackets 1 to 5.

Likewise, trainees will not receive any remuneration and students will not receive a one-off payment.

Bafög recipients, however, are entitled to the one-off heating cost allowance of 230 euros.

It is currently still completely unclear whether the unemployed, i.e. recipients of unemployment benefit I, will be entitled.

Energy flat rate 2022 from the relief package: do pensioners and mini-jobbers receive energy aid?

According to the current status, pensioners are currently staring at the 2022 energy flat rate.

This is reported, among other things, by the Bild newspaper.

Another group does not seem to have been taken into account in the energy flat rate: mini-jobbers.

You are not part of tax class 1-5 and can therefore not count on the payment of the 300 euros from the energy cost flat rate.

Energy price flat rate from the relief package 2022: When will the bonus of 300 euros come?

It is still unclear when the bonus of 300 euros from the energy flat rate will come, but the delays in the introduction of the energy flat rate could possibly be used to make improvements to the content and to wave the measures of the 2022 relief package through the committees.

One thing is certain: so that citizens in Germany receive the money as “quickly” as possible from the 2022 relief package, a lot still has to happen.

Source: merkur

All news articles on 2022-05-01

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