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Energy price flat rate
The flat-rate energy allowance was introduced to mitigate the drastic increase in energy costs caused by the energy crisis. It is primarily intended to compensate for the increased work-related commuting expenses. The lump-sum energy allowance is granted to actively employed persons for the 2022 assessment period and is available only once to each beneficiary. Unrestricted taxpayers who earn income from non-self-employed work (or profit income, such as income from agriculture and forestry, commercial income, income from self-employment) in the 2022 assessment period are eligible. The prerequisite for employees is that they receive wages from a currently first employment relationship. The lump-sum energy allowance amounts to EUR 300 and is generally taxable, but exempt from social security contributions. It is taxed at the individual tax rate. In addition, church tax and also solidarity surcharge may apply, if applicable.
With the one-off flat-rate energy tax, the German government aims to provide quick and unbureaucratic relief for the middle of our society. With a few exceptions (in particular „only“ pensioners), most taxpayers will benefit from the relief. All gainfully employed persons subject to wage tax who are classified in one of the tax brackets 1 to 5 or who receive wages taxed at a flat rate in accordance with Section 40a (2) of the German Income Tax Act (EStG) (marginal employees) will receive a one-off energy price flat rate of €300 from their employers as a subsidy to their wages to cushion further hardship in the area of energy prices. The payment will be made via the employer’s or employer’s payroll for the first time from the month of September 2022 (the employer can already reduce the wage tax in the amount of the expected payments to its employees in August as part of the reporting procedure in order to avoid liquidity bottlenecks). Accordingly, employees who are in an ongoing first employment relationship on 01.09.2022 are eligible. If the energy price flat rate cannot be paid to employees via the employer, e.g. because there is no current employment relationship on 01.09.2022 or the employer does not have a permanent establishment in Germany, the energy price flat rate is determined via the income tax assessment.
Many individual questions regarding the energy price flat rate can be found on the FAQ page of the Federal Ministry of Finance:
https://www.bundesfinanzministerium.de/Content/DE/FAQ/energiepreispauschale.html
(This FAQ is written in german)
A form for determining primary employer status for marginal employees on our website here:
Energy price flat rate
The flat-rate energy allowance was introduced to mitigate the drastic increase in energy costs caused by the energy crisis. It is primarily intended to compensate for the increased work-related commuting expenses. The lump-sum energy allowance is granted to actively employed persons for the 2022 assessment period and is available only once to each beneficiary. Unrestricted taxpayers who earn income from non-self-employed work (or profit income, such as income from agriculture and forestry, commercial income, income from self-employment) in the 2022 assessment period are eligible. The prerequisite for employees is that they receive wages from a currently first employment relationship. The lump-sum energy allowance amounts to EUR 300 and is generally taxable, but exempt from social security contributions. It is taxed at the individual tax rate. In addition, church tax and also solidarity surcharge may apply, if applicable.
With the one-off flat-rate energy tax, the German government aims to provide quick and unbureaucratic relief for the middle of our society. With a few exceptions (in particular „only“ pensioners), most taxpayers will benefit from the relief. All gainfully employed persons subject to wage tax who are classified in one of the tax brackets 1 to 5 or who receive wages taxed at a flat rate in accordance with Section 40a (2) of the German Income Tax Act (EStG) (marginal employees) will receive a one-off energy price flat rate of €300 from their employers as a subsidy to their wages to cushion further hardship in the area of energy prices. The payment will be made via the employer’s or employer’s payroll for the first time from the month of September 2022 (the employer can already reduce the wage tax in the amount of the expected payments to its employees in August as part of the reporting procedure in order to avoid liquidity bottlenecks). Accordingly, employees who are in an ongoing first employment relationship on 01.09.2022 are eligible. If the energy price flat rate cannot be paid to employees via the employer, e.g. because there is no current employment relationship on 01.09.2022 or the employer does not have a permanent establishment in Germany, the energy price flat rate is determined via the income tax assessment.
Many individual questions regarding the energy price flat rate can be found on the FAQ page of the Federal Ministry of Finance:
https://www.bundesfinanzministerium.de/Content/DE/FAQ/energiepreispauschale.html
(This FAQ is written in german)
A form for determining primary employer status for marginal employees on our website here:
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