Tax relief for volunteers in vaccination and test centres

Voluntary helpers in vaccination and test centres were already able to benefit from tax relief in the years 2020 to 2022, and these regulations also apply for 2023.

The regulations are uniform across Germany and concern the trainer's allowance and volunteer allowance. Helpers directly involved in vaccinations or tests can use the trainer's allowance, while the volunteer allowance applies to those working in administration or organisation.

It is important to note that the tax relief only applies if the employer is a charitable organisation or a public employer, not for doctors' surgeries or private test centres.

The trainer's and volunteer allowances only apply to part-time activities that usually take up less than one-third of the working hours of a full-time job or have a weekly working time of a maximum of 14 hours. These allowances are annual amounts and cannot be prorated.

Doctors' surgeries are excluded from these regulations. If doctors pay employees a bonus for the additional work, the trainer's or volunteer allowance cannot be used.

The allowances of 3,000 Euro or 840 Euro can also be taken into account by the employer when calculating income tax. In this case, the employee must confirm in writing to the employer that the respective allowance has not already been "used up" elsewhere.

(2023): Tax relief for volunteers in vaccination and test centres

Which tax-free expense allowances do I need to declare?

If you have received tax-free expense allowances, please enter them here. This includes allowances received from public funds, a federal or state fund.

However, employees usually receive a tax-free expense allowance from part-time work. This could be a role as an instructor, educator, trainer in the sports sector or as an artist such as a choir director or musician, and also as a carer for sick, elderly or disabled people. It must be an educational or caregiving role.

Payments for such eligible part-time work are tax and social security-free up to 3,000 Euro. The condition for the tax benefit is that the work is part-time, carried out for a charitable organisation or a legal entity under public law, and serves charitable, benevolent or religious purposes.

The allowance of 3,000 Euro is granted only once per person, even if you have several eligible roles. It is therefore personal and not job-related. The allowance is an annual amount. Therefore, payments up to the maximum amount remain tax-free even if you do not carry out the eligible work for the entire year.

As a supporter of such an organisation, you can receive part or all of your expense allowance tax-free. However, any amounts exceeding the allowance of 3,000 Euro must be taxed. If your expense allowance is less than 3,000 Euro, you can only claim the lower amount.

Ms Meier teaches at a music school and receives 2,800 Euro annually for this. She also supervises a gymnastics group at the primary school and receives another 400 Euro per year for this. Both activities are tax-privileged under § 3 No. 26 EStG, but only up to a total of 3,000 Euro. Ms Meier must tax the remaining 200 Euro.

(2023): Which tax-free expense allowances do I need to declare?

When should I declare income as a cross-border commuter?

If you live in a border area and commute daily to work in a neighbouring country, you are considered a cross-border commuter. Regarding your income, the following applies in most neighbouring countries: you must pay tax on your salary in the country where you work; the income remains tax-free in the country where you live. However, your foreign income is included in the progression clause and thus increases the tax rate for your other income.

The information must be provided in "Form N" and "Form N-AUS" or Form N-Gre. Form N-Gre concerns foreign income from employment for cross-border commuters from Baden-Württemberg to Austria, Switzerland, and France.

If you are single, work as a cross-border commuter, and have no additional income in Germany, you do not need to worry about the progression clause in Germany.

Exceptions: For France, Austria, and Switzerland, a special cross-border commuter regulation applies under the respective double taxation agreement.

If you work in France or Austria, you do not have to pay taxes there but must declare the wages in your German tax return and pay tax as normal. Civil servants or public sector employees, however, pay tax on their income in the country where they work, as the principle of the paying state applies.

If you work as a cross-border commuter in Switzerland, your employer may deduct a wage tax of 4.5 percent, which is credited against the tax in Germany. If you are a civil servant or public sector employee, you must pay tax on your income entirely in Germany.

Please note that during the coronavirus period, there were special regulations for cross-border commuters, as many employees worked from home and did not commute daily (see also: Double taxation agreements and other agreements in the tax sector). In addition, double taxation agreements are now being amended, or so-called amendment protocols have been agreed, whereby home office days are increasingly considered harmless. In individual cases, it should be carefully checked where the taxation right lies.

(2023): When should I declare income as a cross-border commuter?

What is the "Special Cross-Border Commuter Regulation"?

These regulations apply to commuters who live in Germany and commute to work in France, Austria, or Switzerland. This is governed by the respective double taxation agreements. If you work in one of these countries, you must pay tax on your income in Germany, not in the country where you work. However, this only applies if your place of residence and work is in the border zone of the respective country. For France, the border zone is 20 km on either side of the border, for Austria it is 30 km. In Switzerland, there is no such border zone.

There was also a special cross-border commuter regulation with Belgium until 2003. However, since 2004, the general regulation has applied. This means for cross-border commuters to Belgium: The salary is no longer taxed in the country of residence, Germany, but in the country of employment, Belgium. In Germany, the income is exempt from tax but included in the calculation of the tax rate. However, there is a special tax regulation for commuters from Belgium to Germany: Belgium, as the country of residence, exempts the wages taxed in Germany as the country of employment and only includes them in the calculation of the tax rate. However, this income is included in the Belgian municipal tax, which is an additional tax on income tax. To offset this Belgian municipal tax, German income and wage tax on this income is reduced by a flat rate of 8%.

(2023): What is the "Special Cross-Border Commuter Regulation"?

Who receives wages without tax deduction?

In the tax return, you must also enter wages in "Form N" from which no income tax was deducted. This applies to wages from a foreign employer that are taxable in Germany, as well as wages paid by third parties where the employer was not obliged to deduct income tax.

Such income without tax deduction may be eligible for hardship relief if it does not exceed 820 Euro.

Important: You do not need to enter a Minijob here. For this employment, the employer pays flat-rate taxes and social security contributions. The employee does not pay any taxes or contributions. You do not need to declare the income from the Minijob in the tax return.

However, it is also possible that the Minijob is taxed monthly according to income tax details (ELStAM). In this case, the Minijob must also be declared in the income tax return under “Employees > Income tax statements”. Your employer must provide you with an income tax statement in this case.

(2023): Who receives wages without tax deduction?

Do I need to declare my part-time job in my income tax return?

A part-time job, also known as a 520-Euro job, is when the monthly wage regularly does not exceed 520 Euro. The period for determining the regular monthly wage is a maximum of 12 months.

Tax and Social Security

In a part-time job, the employer pays flat-rate taxes and social security contributions. The employee does not pay any taxes or insurance contributions.

Tax Return

A part-time job usually does not need to be declared in the tax return. However, an exception applies if the employer does not opt for the flat-rate income tax. In this case, the employee receives a payslip and must enter the relevant data in their income tax return.

Minimum Wage Adjustment

From 1 January 2024, the minimum wage is set to rise to 12.41 Euro per hour and from 1 January 2025 to 12.82 Euro per hour. This will increase the part-time job limit to 538 Euro (2024) and 556 Euro (2025).

The earnings limit for part-time jobs can be exceeded a maximum of twice within a calendar year. An exceedance is only permitted for up to two months within a year and may not exceed a total of 6,240 Euro (or in exceptional cases up to 7,280 Euro) per year.

(2023): Do I need to declare my part-time job in my income tax return?