Paragraph 6 Separation Pay Regulation
April 22, 2013 | 30,00 EUR | answered by Michael Herrmann
According to Section 6 of the Separation Allowance Regulation, as a professional soldier, I have been receiving "separation allowance for daily return to my place of residence" for years, as I was not granted relocation expenses. The distance is simply 65 km.
The separation allowance is taxed in the following month. The corresponding amount is then listed in the salary statement under the term "taxation of separation allowance".
It is not separately listed in the annual income tax certificate.
It is certified in the annual gross income. Therefore, the separation allowance is treated as taxable income.
Do I now have to declare this (separation allowance according to Section 6) again in the tax return, or can I claim the travel expenses per kilometer of distance as unreduced business expenses for deduction?
Can the tax office also request the monthly salary statements additionally?
Dear inquirer,
First of all, thank you for your inquiry, which I would like to answer based on the information you provided and in the context of your initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
As you have already noticed, the separation pay is taxable income that compensates for the additional expenses related to separation. This is not separately listed in the wage tax certificate.
The deduction of business expenses for the actual travel expenses would only be impossible if the employer reimbursement had been paid tax-free. Therefore, you can apply for the deduction of business expenses in this case.
The tax office may request all necessary documents and information to determine the facts. It should be noted that the wage tax certificate is not binding. However, it is unlikely that the reported income will be questioned.
An exception applies only if the employer has reported tax-free employer benefits regarding the separation pay in lines 17-21 of the wage tax certificate. In this case, the calculated business expenses need to be adjusted accordingly.
I hope that with this information, I have provided you with a sufficient overview of the situation in the context of your inquiry and this initial consultation.
Sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
