The mobility premium is a temporary tax incentive for low earners. Employees whose wages are not subject to flat rate taxation can apply for a tax-free mobility premium of 14 percent as tax credit. The regulation affects those for whom the increased distance allowance has not led to any tax relief from the 21st kilometre. The measure from the Tax Relief Act applies to the period 2021 to 2026.
The federal government has launched a third relief package to mitigate the consequences of the war in Ukraine and the energy crisis. Some of the measures decided therein, such as the increase in the basic allowance, the distance allowance and the employee allowance have an effect on the mobility premium.
If you have further questions about the mobility bonus, please contact the experts at the Altehoefer law firm for international tax advice.