The second relief package launched by the German government includes the lump-sum energy price allowance (Energiepreispauschale, EPP), which is intended to mitigate the sharp rise in energy costs. This is a one-off amount of €300 to be paid to every eligible German citizen, regardless of financial or marital status.

Eligible persons include taxpayers subject to unlimited tax liability who earn income from agriculture and forestry, from commercial or self-employed activities or under an employer-employee relationship. It has been decided in the meantime that so-called “mini-jobbers” should also receive the EPP. In contrast, unemployed persons, students and recipients of pension benefits such as retired persons or pensioners are not entitled to receive the payment. However, if these persons are also in active employment, this gives rise to an entitlement to the EPP.

The payment is to be generally made in September 2022 by the primary employer to those who are in a primary employment relationship and are in tax class I to V or are marginal employees on 1 September 2022. In principle, this represents additional taxable income, which is, however, not subject to social security contributions.

It is not required that such persons be actively employed on 1 September 2022. An entitlement to the EPP also arises if such an entitlement existed at any time in 2022. However, payment will then only be made when the 2022 income tax return is submitted and the corresponding income tax assessment is issued. The same procedure applies to taxpayers who mainly generate profits from agriculture,
forestry, commerce or self-employment and do not make any advance payments of tax. If taxpayers make advance payments, the EPP is taken into account by reducing the advance payment amount for the 3rd quarter accordingly. However, if the advance payment amount is less than €300, the advance payment amount is reduced to €0. The remaining amount is received by the entitled parties via the income tax assessment.

If this article interests you, read also:

Is withholding tax unconstitutional?
Submit application for land value tax waiver by 31 March 2022
German withholding tax as an investment and tax planning trap

No token or token has expired.