Requirements for a spousal employment relationship

Detailed records of working hours in the context of a spousal employment relationship are not necessarily required for tax recognition.

For the tax recognition of employment relationships with close relatives, the decisive factor is whether the contract and other conditions can withstand an arm's length comparison. However, the requirements for corresponding evidence must remain within bounds. According to the Federal Fiscal Court, relatives do not have to put up with what third parties do not expect of each other. Records of working hours (timesheets, etc.) therefore only serve as evidence. However, they are not mandatory for the tax recognition of an employment relationship between close relatives. Thus, ambiguities in the weekly working time are harmless for the tax recognition of the employment relationship if the concrete working time of the relative depends on the professional requirements of the employer and ambiguities are therefore due to the specific nature of the employment relationship and not to an unusual arrangement.