Tax & Legal

On 2 July 2026, as part of the Federal Government's Programme for Economic Recovery and Employment, the coalition parties announced the results of the coalition committee’s deliberations. These also include changes to tax law.

A draft cabinet bill, which has not yet been officially published, has now been submitted by the CDU/CSU and SPD proposing an amendment to introduce a temporary tax exemption in Section 3(11d) of the draft Income Tax Act for so-called “relief bonuses” of up to EUR 1,000 paid by employers

The ECJ has held that a couple resident in Switzerland but earning their entire income in Germany must be granted the full range of personal reliefs available to residents.