The German Association of Tax Consultants called for taxation of the EPP to be avoided as early as April 2022. For legal reasons, the association criticized the fact that this subsidy was assigned to a type of income in the Income Tax Act. Nevertheless, the Tax Relief Act came into force in 2022 without any adjustments to the EPP’s tax liability.

It remains to be seen whether the Federal Finance Court or the Federal Constitutional Court will soon examine the tax liability of this relief measure. The extent to which it makes sense to file an objection and request to suspend the proceedings – at the present time or later – must be decided on a case-by-case basis.

If you have further questions about the energy price flat rate, please contact the experts at the Altehoefer law firm for international tax advice.