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Recent legislative changes and upcoming administrative guidance have brought important updates to the (wage) tax treatment of employer-provided benefits, particularly regarding incentives for company cars with alternative engines and reimbursement of electricity costs. In this article, we provide an overview of the current (wage) tax regulations for company cars and outline the differences between lump-sum and itemized reimbursement models for charging electric vehicles. Employers will gain practical insights into how to implement these benefits in a tax-optimised and legally compliant manner.

On 5 June 2024 the German government published the draft bill for an Annual Tax Act for 2024. Amongst other areas of German income taxation, the bill especially includes changes and new regulations that affect the area of tax restructuring, which can be seen, at least in part, as a response by the legislature to recent judgments by the German Federal Constitu-tional Court and Federal Fiscal Court. In this article, we take a look at the proposed changes and their potential effects.