Fixed travel allowances can remain tax free during corona crisis
Travel allowance can remain tax free if the employee works from home during the corona crisis
Employers may continue to pay a fixed travel allowance tax free as long as the corona measures apply. The decree of the State Secretary states that employers do not have to attach consequences to a changed travel pattern of the employee who now works from home much more. The employer may continue to rely on the facts on which the fixed travel allowance is originally based.
Under normal rules, the travel allowance would no longer be specifically tax exempted if the employee was at home for 6 weeks or more. This fiscal consequence has been canceled by the decision of the State Secretary. Of course, the employer can decide to no longer reimburse the travel costs, for example because this saves money.
No mandatory anonymous rate for new employees
It has also been announced that the Tax authorities will be more flexible in dealing with employers who are temporarily unable to meet certain administrative obligations regarding payroll taxes due to the corona crisis. For example, the anonymous rate of 52% that applies if an employer does not determine the identity of new employees in time can be omitted. However, employers must repair the shortcomings as soon as possible.