In two decisions, the Tax Court of Cologne decided that payments of EUR 50,000 and some EUR 1.3 million respectively made to authorized representatives of a GmbH do not generally qualify as tax-free tips but are rather part of the employment and subject to the personal income tax of the recipients.
The Supreme Tax Court has held that gains from the sale of profit participating rights acquired up to December 31, 2008 are to be tax-free under the continued application of old law.
The Supreme Tax Court has confirmed its continued acceptance of an upper limit for the costs of employee outings and similar functions, whilst hinting that it might later reconsider its overall approach.
The Supreme Tax Court has held that employer contributions to employee health insurance policies are tax-free if required by statute and the employee is unable to encash the benefit.
