{"id":4538,"date":"2022-12-11T12:42:18","date_gmt":"2022-12-11T11:42:18","guid":{"rendered":"https:\/\/interstellar.accountable.de\/?p=4538"},"modified":"2023-04-27T11:12:26","modified_gmt":"2023-04-27T09:12:26","slug":"germany-tax-changes-2023","status":"publish","type":"post","link":"https:\/\/interstellar.accountable.de\/en\/blog\/germany-tax-changes-2023\/","title":{"rendered":"6 tax changes affecting freelancers in Germany in 2023"},"content":{"rendered":"

The government has worked on a new tax act. This tax law was passed by the Bundestag and will result in numerous tax changes and various tax reliefs in 2023. Here we tell you what they are and how you can benefit from them as a self-employed professional!\u00a0<\/strong><\/p>\n

What changes in 2023? More net from gross income<\/h2>\n

The effects of the war in Ukraine, including the energy crisis and inflation, are clearly felt by all of us, especially in the form of rising electricity, gas and food prices. In order to reduce these and other financial burdens<\/strong>, the federal government has planned various tax changes for 2023 as part of the Annual Tax Act 2022. This should counter inflation and leave us all with significantly more net from the gross<\/strong>.<\/p>\n

The planned new tax laws and tax reductions for 2023 are intended to affect several different areas. Wether it’s the Grundfreibetrag<\/strong> (basic tax-free allowance), child benefit<\/strong> or homeoffice allowance<\/strong>: depending on your life situation and the amount of your income, you can get even more out of your tax return<\/a> this year!<\/p>\n

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  1. Grundfreibetrag (basic tax-free allowance)<\/span><\/a><\/li>\n
  2. Kindergeld (child benefit)<\/span><\/a><\/li>\n
  3. Unterhalt f\u00fcr \u00e4ltere Kinder (child benefit for older kids)<\/span><\/a><\/li>\n
  4. Homeoffice<\/span><\/a><\/li>\n
  5. Umsatzsteuer f\u00fcr Photovoltaik (VAT for photovoltaics)<\/span><\/a><\/li>\n
  6. Sparerpauschbetrag (saving allowance)<\/span><\/a><\/li>\n<\/ol>\n

    1. Grundfreibetrag (basic tax-free allowance) rises to 10,908 euros<\/b><\/h2>\n

    The\u00a0Grundfreibetrag<\/a>, meaning the maximum\u00a0amount of your income for which no tax is due, will increase from 10,347 euros to<\/strong> 10,908 euros<\/strong> from the first of January 2023. This means that you will be able to earn 561 euros more tax-free in 2023. For married couples and registered partners, twice the amount, i.e. 21,816 euros, will remain tax-free. A further increase of 300 euros is planned for 2024. Even if you earn more, you will benefit from the increase in the basic tax-free amount, as a larger part of your income will remain tax-free<\/strong>.<\/p>\n

    Income tax is therefore only due if you exceed this new Grundfreibetrag. The tax rate starts at 14%<\/strong>\u00a0and increases with increasing income. But there is a problem: Inflation automatically cancels out any increase in your income due to the general rise in costs of living. As a result, you would have to pay even more of your income with a higher tax rate, even though you can afford less. In order to counteract the so-called “cold progression”, the tax rates have been adjusted to inflation:<\/p>\n