On 16 March 2022, the German Federal Cabinet approved a draft bill providing a package of tax relief measures to help mitigate the impact of rising energy prices. Measures of the package include:
- Increase in the employee lump-sum deduction for income tax by EUR 200 from EUR 1,000 to EUR 1,200 with retrospective effect from 1 January 2022;
- Increase in the basic tax-free allowance for 2022 by EUR 363 from EUR 9,984 to EUR 10,347 with retrospective effect from 1 January 2022; and
- Increase in th…