What is special about the number 40

(1) 1The permanent establishment tax office (Section 41a, Paragraph 1, Clause 1, No. 1) can, upon application by the employer, permit wage tax to be levied at a flat rate tax rate to be determined taking into account the provisions of Section 38a, insofar as
1.
other payments are granted by the employer in a larger number of cases or
2.
In a larger number of cases, wage tax is to be levied retrospectively because the employer has not withheld the wage tax in accordance with regulations.
2When determining the flat rate tax rate, it must be taken into account that the assumption of the flat rate wage tax by the employer as stipulated in paragraph 3 represents income for the employee in monetary value within the meaning of Section 8 paragraph 1 (net tax rate). 3The flat rate is excluded in the cases of sentence 1 number 1 if the employer grants an employee other payments of more than EUR 1,000 per calendar year. 4The employer must enclose a calculation with the application which results in the average tax rate based on the average annual wages and the average annual wage tax in each tax bracket for those employees to whom the remuneration is to be or has been granted.
(2) 1Notwithstanding paragraph 1, the employer can levy wage tax at a flat rate of 25 percent, provided that he
1.
gives free or discounted meals to employees every working day in the company or provides cash grants to another company that gives employees free or discounted meals every working day. 2The prerequisite is that the meals are not agreed as part of the wages,
1a.
or at his instigation, a third party provides the employees with meals on the occasion of a professional activity outside of his home and first place of work, which are to be set at the value in kind according to § 8 paragraph 2 sentences 8 and 9,
2.
Pays wages on the occasion of company events,
3.
Granted recovery allowances if, together with recovery allowances granted earlier in the same calendar year, they do not exceed 156 euros for the employee, 104 euros for their spouses and 52 euros for each child and the employer ensures that the allowances are used for recreational purposes,
4.
Pays remuneration for additional meal expenses on the occasion of an activity within the meaning of § 9 Paragraph 4a Clause 2 or Clause 4, insofar as the remuneration does not exceed the lump sums due according to § 9 Paragraph 4a Clause 3, 5 and 6 by more than 100 percent,
5.
in addition to the wages owed anyway, assign data processing equipment to the employees free of charge or at a reduced price; this also applies to accessories and internet access. 2The same applies to grants from the employer, which are paid in addition to the wages owed anyway to the expenses of the employee for internet use,
6.
in addition to the wages owed anyway, assigns the charging device for electric vehicles or hybrid electric vehicles within the meaning of Section 6 Paragraph 1 Number 4 Clause 2 second half-sentence free of charge or at a reduced price. 2The same applies to employer's subsidies, which are paid in addition to the wages owed anyway to the expenses of the employee for the acquisition and use of this loading device,
7.
in addition to the wages owed anyway, assigns a company bicycle that is not a motor vehicle within the meaning of Section 6 Paragraph 1 Number 4 Clause 2 free of charge or at a reduced price to the employees.
2The employer can levy wage tax at the following flat rate tax rates:
1.
with a flat tax rate of 15 percent for those who are not tax-exempt under Section 3 number 15
a)
Remuneration in kind in the form of free or discounted transport of an employee between home and first place of work as well as journeys according to Section 9 Paragraph 1 Clause 3 Number 4a Clause 3 or
b)
Subsidies for the employee's expenses for journeys between home and first place of work or journeys in accordance with Section 9 (1), sentence 3, number 4a, sentence 3, which are paid in addition to the wages owed anyway,
insofar as the remuneration does not exceed the amount that the employee could claim as income-related expenses in accordance with Section 9 Paragraph 1 Clause 3 Number 4 and Paragraph 2 if the remuneration were not taxed at a flat rate; these lump-sum tax payments reduce the deductible income-related expenses in accordance with Section 9 Paragraph 1 Clause 3 Number 4 Clause 2 and Paragraph 2 or
2.
with a flat tax rate of 25 percent instead of the tax exemption according to § 3 number 15 uniformly for all remuneration mentioned there in a calendar year, even if the remuneration is not granted to the employee in addition to the wages due anyway for these lump-sum tax payments, there is no reduction in the deductible income-related expenses in accordance with Section 9 Paragraph 1 Clause 3 Number 4 Clause 2 and Paragraph 2 or
3.
with a flat tax rate of 25 percent for the free travel authorizations that soldiers receive in accordance with Section 30 (6) of the Soldiers Act; For these lump-sum tax payments, there is no reduction in the deductible income-related expenses according to Section 9 Paragraph 1 Clause 3 Number 4 Clause 2 and Number 5 Clause 6.
3The remuneration taxed at a lump sum in accordance with sentence 2 is not taken into account when applying Section 40a paragraphs 1 to 4. 4The assessment basis for the flat-rate wage tax in the cases of sentence 2 numbers 2 and 3 is the employer's expenses including sales tax.
(3) 1The employer has to pay the flat-rate wage tax. 2He is the debtor of the flat-rate wage tax; The flat-rate wage tax passed on to the employee counts as accrued wages and does not reduce the assessment basis. 3The flat-rate taxed wages and the flat-rate wage tax are not included in an assessment for income tax and in the annual wage tax adjustment. 4The flat-rate wage tax is not offset against income tax or annual wage tax.

footnote

(+++ § 40: For application see § 52 +++)