Exemption limit
Exemption limit is a term from German tax law . If an exemption limit is exceeded, the legal consequences apply to the total amount, not just to the amount exceeding the exemption limit.
Case study
Profits from private sales transactions remain in accordance with 23 EStG tax-free if the total profit achieved in the calendar year was less than € 600 (= tax exemption limit of € 599 in fact).
- The total profit is € 500: No tax liability, as the exemption limit is not exceeded.
- The total profit is € 610: tax liability of the full amount of € 610, as the exemption limit is exceeded.
Examples of exemption limits
- Exemption limit for income from private sales transactions ("speculative profits ") = 599.99 euros per year, ( Section 23 (3) sentence 5 EStG)
- Exemption limit for employer loans , previously 2,600 euros, now see benefits in kind
- Exemption limit for remuneration in kind per month = 44 euros, ( Section 8 (2) sentence 11 EStG)
- Interest barrier in corporate taxation of 3 million euros per year ( Section 4h (2) sentence 1 a) EStG)
- Exemption limit for income from certain services = 255.99 euros (Section 22 No. 3 EStG)
- Exemption limit for real estate transfer tax for the acquisition of real estate = EUR 2,500 ( § 3 No. 1 GrEStG)
- Exemption limit up to which no solidarity surcharge is levied (from 2021 up to around EUR 61,700 annually taxable income , double that for married people).
Other usage
The possession of cannabis products is generally prohibited in Germany. In small quantities for personal use, however, prosecution is not required. The amount tolerated is often called the exemption limit or tolerance limit . However, this exemption limit does not mean that possession is viewed as permitted. Small amounts are also prohibited and will be confiscated. Prosecution is only refrained from within the framework of the tolerance limit. In 1994 the Federal Constitutional Court appealed to the federal states to regulate the exemption limit uniformly.
See also
Footnotes
- ^ Draft of a law to reduce the solidarity surcharge 1995. Accessed on November 18, 2019 .
- ↑ Drugs: Countries are reviewing uniform hashish exemption limits
