EU and SPD propose tax breaks for home offices

In the midst of the ongoing coronavirus pandemic, lawmakers from Germany's Christian Democratic Union (CDU) and Social Democratic Party (SPD) have voiced their support for a new tax relief measure aimed at citizens working from home.

Antje Tillmann (CDU), a financial politician, and Lothar Binding (SPD) have advocated for allowing home office expenses to be deducted from taxes. This proposed relief, they believe, would offer special recognition to employees, particularly parents, who have borne additional burdens during the past months.

Tillmann stated that every employee or entrepreneur has faced extra challenges in the last few months, and it's only fair that these additional costs are recognised. One of the primary expenses that most employees currently find difficult to deduct from their taxes are the increased costs of electricity and heating due to the home office setup.

However, there are conditions to qualify for this tax relief. A separate room used exclusively for work and used at least 90 percent for professional purposes is required to deduct home office expenses. This requirement aims to ensure that the tax relief is fair and does not cause an "unjustified administrative burden."

The Federal Ministry of Finance is also considering further aid due to the coronavirus pandemic, which includes tax measures. Tillmann has called for a "general allowance for additional corona-related hardships," which would benefit all taxpayers due to Covid-19.

Lawmakers from the Union and SPD are discussing this tax relief for home workers as part of the Annual Tax Act talks. While specific detailed proposals and the date for the first Bundestag discussion on this topic are not yet available, it's clear that this issue is being actively considered.

As the pandemic continues to impact our lives, it's encouraging to see lawmakers working to ease the financial burden on those who are working from home. This proposed tax relief would not only recognise the additional costs incurred but also aim to do so without creating unnecessary administrative hurdles.