If only everything were as easy as securing the 300 euro energy flat rate. It is part of the relief package and while the 9-euro ticket and fuel discount have been around for some time, the state subsidy for increased energy costs is still pending. The lump sum is actually called the energy price lump sum and is often abbreviated to “EPP”.

The good news: Most people simply don’t have to do anything to get around 300 euros. In September there should simply be 300 euros more on the payslip. But it’s worth knowing the details.

The 300 euros of the EPP are intended to relieve people “who typically incur travel costs in connection with their income generation and who are heavily burdened in this regard due to the current energy price development,” writes the Federal Ministry of Finance in the best official German.

In short, one could say that anyone who lives in Germany and receives taxable income in 2022 will receive the 300 euros. These include, among other things:

Retired civil servants and pensioners who do not have any income from agriculture and forestry, commercial operations, self-employment or income as an employee from active employment in 2022 will not receive an EPP.

Employees who are subject to unlimited tax liability receive the 300 euro EPP with their pay slip in September in a particularly convenient way. So it’s a good idea to take a second look at the payslip. If the flat rate is noted there, you do not have to take any action. If it is missing, you can consult the accounting department.

There are cases where the employer does not pay out the EPP, for example when

However, the energy flat-rate does not then apply; rather, it is included in the income tax return for 2022.

Not everyone is employed by a company. But the self-employed and freelancers also get the 300 euro EPP. In these cases, it cannot be paid out by the employer. The trick is that these professional groups can claim the 300 euros as a reduction in the income tax prepayment. This also applies to income from agriculture and forestry as well as to commercial enterprises.

The income tax advance payment for the third quarter of 2022, i.e. the payment for September 10, 2022, will be reduced.

You are welcome to take 300 euros from the state with you, but this is not a tax-free subsidy. The energy flat rate is therefore subject to tax in terms of income tax and wage tax.

As far as income tax is concerned, the EPP is ‘other income’. The EPP paid out by the employer is subject to income tax deduction as an “other benefit”. However, the self-employed do not have to pay sales tax or trade tax for the EPP.