Survey of tax-privileged fringe benefits

The German income tax allows for a number of tax-privileged fringe benefits.

From the perspective of a firm these represent a convenient way to increase salaries while, at the same time, keeping total labor costs low since, mostly, also no social security contributions are entailed. However, the more intensely firms resort to this instrument the more the tax system as well as the the social security system erodes.

As yet there exist very little investigations on the extent to which firms actually utilize fringe benefits. This project intends to lay the cornerstone for the ascertaining of more reliable data. The various types of fringe benefits in question are investigated and already existing datasets are examined on their usefulness to derive the relevant data. In addition, concepts for an appropriate enquiry on firm level will be designed.

• Commissioned by: Federal Ministry of Labour and Social Affairs
• Contact Person: Dr. Peter Gottfried, email