LStR Maintenance Decree 2021 - Innovations to the Control Sixth

On 20 December 2021, the LStR maintenance decree 2021 was published (2021-0.834.943, BMF-AV No. 176/2021). The current maintenance has also brought additions and clarifications regarding the control sixth. The following article provides an overview of the most important changes in this context:


Change of employer 

When submitting the annual payroll for the sixths calculation, the control sixth must also be calculated as if all remuneration had been paid in a calendar year by only one employer. If the current remuneration of the previous employer is taken into account by the next employer for the annual sixth, this must also be taken into account for the control sixth.


Foreign-related special payments

If, on the basis of a double taxation agreement, individual special payments constitute remuneration that is partially taxable domestically and partially taxable abroad, an allocation (on a percentage basis) to the fixed tax rates pursuant to § 67 (1) EStG (Income Tax Act) must also be made when determining the control sixth.


Definition - Employer and employee

For clarification purposes, the terms employer and employee were included in the maintenance decree.

  • An employer is a person who pays wages within the meaning of § EStG.
  • Employees are natural persons who receive income from employment.

This means that the rule on the control sixth (§ 77 [4a] EStG) also applies to recipients of company pensions.


Exceptional cases (§ 77[4a][1][a]-[j] EStG) - Supplements to Interpretation                                                                            

It is now expressly pointed out that only the facts mentioned in § 77 (4a) 1 lit a - j EStG are exempt from the roll-up obligation or subsequent taxation. Clarifications were made with regard to the interpretation of several facts:

  • Parental leave (lit a)
    The exception also includes the "papa month" and maternity leave, but not parental part-time leave due to the absence of an enumeration in the law. Furthermore, it is stated that in the case of a parallel employment relationship during maternity leave, two separate employment relationships are to be assumed (in terms of employment and tax law). Remuneration from the employment during parental leave is irrelevant for the parallel employment relationship. The employment relationship on leave is not subject to subsequent taxation pursuant to § 77a (4a) 1 EStG.
  • Basic military service (lit g)
    Only basic military service according to § 20 of the 2001 Military Service Act and civilian service according to § 6a of the 1986 Civilian Service Act are exempt. Militia training, voluntary weapons training, temporary soldiers, etc. are not covered by the exception.
  • Termination of employment and re-employment (lit j)
    With regard to the omission of subsequent taxation upon termination of the employment relationship, provided that no new employment relationship is entered into with the same employer in the calendar year, the end of the employment relationship under labor law and not the extension of the compulsory insurance must be taken into account.

If the employee rejoins the same employer during the calendar year, the sixth of the control must be determined at the latest when the last current salary is paid out after rejoining the employer. Subsequent taxation is already possible upon termination of the first employment relationship if the re-employment is already determined at the time of termination.

The retirement of civil servants shall be treated equivalent to termination of employment.

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