Minimum income level remains tax-free
The Federal Government has adopted the 12th Minimum subsistence level report: It stipulates, among other things, that in 2019 and 2020 the subsistence minimum will rise due to higher costs of living and will remain tax-free as in the past.
The term subsistence minimum refers to the financial means required to cover material needs in order to ensure survival.
The basic tax-free allowance for adults, which currently stands at 9,000 euros, will rise to 9,168 euros in 2019 and 9,408 euros in 2020, while the child allowance will rise from 4,788 euros at present to 4,896 euros (2019) and 5,004 euros (2020) respectively. The second child allowance component "allowance for care, education and training" remains constant at 2,640 euros.
The basic allowance is the annual amount up to which the income does not have to be taxed. The increase in the child allowance reflects the increase in child benefit agreed in the coalition agreement.
At the same time, the tax progression report adopted today will lower the income tax rate in order to compensate for the so-called "cold progression". This means that less tax is levied, especially on lower wages and incomes.
The inflation rate indicates how the prices for private consumption expenditure change within a year. This is why it is also referred to as "inflation" or "rate of inflation". If wage increases only compensate for inflation, people will not have more money available despite higher wages. When this happens, one speaks of "cold progression".
Source. Newsletter Federal Government Current v. 02.11.2018 Newsletter Federal Government News v. 02.11.2018
- Legal Tech Act
- Invalidity of the termination of a tenancy agreement
- Influencer means advertising ?
- Employee must prove illness
- Revocation of a car loan agreement
- Liability of a subsidiary for infringement of competition law?
- Interest on tax demands and refunds at 6% p.a. unconstitutional
- Data owned by employer
- Weakening of tenants' rights
- Right of withdrawal for brokerage contracts
- BFH, ruling of 23 March 2016, IV R 9/14: Investment deduction amount
- Cartel damage
- Right abuse
- Setting a deadline
- Protection of third parties
- Internet sales platform
- Bonus payments
- Formal requirements in general terms and conditions
- Termination of a management employment
- No cosmetic repairs at the apartment despite "renovation agreement"
- Income tax return due to loan default
- ECJ ruling on copyright infrigements on Youtube
- Gift invalid without notarial certification
- Minimum subsistence Germany 2019-2020
- revocability of employment termination agreements
- Cover under legal expenses insurance
- Termination without notice
- Labour law: leave
- Immigration of qualified staff
- Unpaid leave
- Tax law: liability of a foreign company in germany
- Custom law ruling
- Labour law: compensation adjustment for lawyer fees
- Termination without notice
- Tenancy law
- Immediate notice of dismissal
- Damages in case of violation of a jurisdiction agreement
- Corona quarantine: legal aspects
- No termination without notice
- Labour law decisions around Corona
- Dismissal due to Covid 19 quarantine invalid