LSTB: “M” Becomes Mandatory Starting 2019
Background
Starting from January 1, 2019, the capital letter “M” is mandatory to record in the payroll account and must be certified in the electronic income tax certificate if the employer or a third party acting on behalf of the employer provides the employee with a meal to be assessed in accordance with § 8 para. 2 sentence 8 of the Income Tax Act (EStG) with the official non-cash benefit value, on the occasion of or during a business trip or as part of a professional double household management. The entry must be made regardless of whether the taxation of the meal is omitted under § 8 para. 2 sentence 9 EStG, the employer has taxed the meal individually or in accordance with § 40 para. 2 sentence 1 no. 1a EStG.
Deadline
The transitional regulation granted for programmatic implementation in section 92 of the BMF letter dated July 30, 2015 (BStBl I p. 614) will finally expire on December 31, 2018. Starting from January 1, 2019, “M” must be entered in accordance with the explanations provided above. Employers should therefore address this issue in a timely manner.
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