Extended cut for accommodation of war refugees

The tax authorities have issued equity measures for housing companies on a generous examination of the conditions for an extended reduction for the housing of war refugees.

The extended reduction for trade tax requires, among other things, that no mixed or commercially used buildings are managed by the management company. The supreme tax authorities of the federal states have therefore published equity measures for the accommodation of war refugees from Ukraine in the application of the extended reduction by means of identical decrees.

In particular, for income until December 31, 2022, it will not be examined whether the granting of furnished living space to war refugees from Ukraine against payment meets the criteria of commercial character. In addition, in 2022, residents are considered indirect tenants of the real estate company if the company rents housing to legal entities under public law that provide the rented housing to war refugees from Ukraine. Income from other support services - such as the provision of food, hygiene items or clothing in return for payment - is only harmless for the extended reduction if the income results from direct contractual relationships with the tenants and this income in the fiscal year does not exceed 5 % of the income from the rental of the entire real estate.