Tax treatment of board directors – office staff, office space and cars

January 10, 2011

The regional finance office of Magdeburg submitted an order on how to deal with additional benefits provided to members of the supervisory board for tax purposes.

Occasionally, larger companies provide office space, office staff and company cars to their board of directors in addition to their cash remuneration.  The question arose as to whether the value of these goods and services needed to be considered as remuneration of the board of directors in terms of § 18 section 1 number 3 German Income Tax Act (EStG).

The decree clarifies the question of taxation for the following situations:

These guidelines apply to the taxation of the remuneration of the board of directors for the member of the board of directors but the ultimate treatment depends upon the precise individual circumstances.


OFD Magdeburg, degree dated 03.08.2011 –S 2248 – 15 St 213

For further information or to discuss any of the issues raised, please contact Joachim Menz on +49 89 242230-0.


CELIA Alliance
CELIA Alliance members are identified here. Members of the CELIA Alliance are each independent law firms and do not practice law jointly with any other member of the CELIA Alliance. “CELIA Alliance” and “CELIA” are not trading names. For more information about the CELIA Alliance click here.

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this newsletter. For further legal information click here.

If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.

Leave a Reply

Your email address will not be published. Required fields are marked *