News in March 2026

Tax incentives for employee equity participation are intended to help companies attract and retain qualified employees over the long term. According to the German tax authorities and tax courts, income tax and social security contributions are only incurred at the time stock options are exercised. The date on which the options are granted or become vested, however, is irrelevant for tax purposes.

Here’s how the participation becomes tax-free:

For employee equity participation plans, an annual tax-free allowance of 2,000 euros applies under Section 3 No. 39 Sentence 1 of the German Income Tax Act (EStG).

However, this allowance can only be claimed under certain conditions. It requires that:

• the employee shareholding is a voluntary benefit provided by the employer,
• it is generally open to all employees who have been in an uninterrupted employment relationship with the employer for at least one year, and
• it constitutes a financial interest in the employer’s company granted to the employee in the form of non-cash benefits.

If it was agreed upon prior to the granting of the benefit that the equity participation would be granted in addition to salary (i.e., no salary conversion within the meaning of Section 8(4) of the Income Tax Act), the income from exercising the options is tax-exempt up to 2,000 euros per year. Furthermore, no social security contributions are due on this amount.

Cash Payment or Benefit in Kind

Under Section 8 of the Income Tax Act (EStG), cash payments are taxable if the employee has access to the funds. These include

• earmarked cash payments,
• reimbursements of expenses,
• cash-like benefits (“cash surrogates”),
• so-called cash vouchers.

Example: If the employer reimburses a purchased voucher, this constitutes taxable cash compensation.

A voucher is only tax-exempt as a benefit in kind if, among other things, the following conditions are met:

a) Restriction to goods or services:

The voucher entitles the holder only to purchase goods or services—from the employer or from clearly defined third-party providers.

Not permitted: Vouchers that can be used exclusively to purchase other vouchers (e.g., Amazon, Zalando).

Note: Vouchers (e.g., Rewe) that can also be redeemed for other vouchers do not automatically constitute cash wages.

"Time flies like an arrow"

Managing Director and founding member Takeshi Saikachi talks about his career and his early days in Germany.

Let's start at the beginning. What is your professional background?

I started my career as a marketing and sales person at a Japanese trading house in Tokyo, where I worked for ten years. The products we sold were industrial gases and chemicals. Many people don’t know that these are used in a wide variety of everyday products. For example, potato chip bags contain nitrogen to keep the chips fresh for longer.

In 2008, I took the U.S. CPA exam (Certified Public Accountant) because I wanted to start my own business. I see myself not only as an accounting professional, but primarily as a businessperson. Due to the financial crisis, there were not many job opportunities in Japan at the time, so I decided to move to India, which was an emerging market.

How did you meet Mathias and Wilhelm (the other two co-founders)?

I actually met Mathias in India. We met at a party for accounting and audit professionals. The next day, I encountered him again on a bus trip to a mosque! We were both still a bit hung over from the party, but we talked a lot. Three years later, he visited again for the professional party and offered me to work in Germany at the auditing firm he was a part of at that time.

When and why did you decide to establish nhs*?

After working with Mathias and Wilhelm for the same auditing firm for four years, I remember the evening very clearly when we decided to build our own company. It was 1 July 2015; we had dinner all together and chatted about our everyday work. Mathias, then, asked "What do you think about working for this firm?" I first gave a very diplomatic answer although I was thinking about doing something else for some time. Mathias then said that he was thinking about establishing another business. I was very happy, because running my own business was my main goal when I became a CPA. And so it all started. Jan, a good friend of Mathias and co-partner, then joined in later. 

Do it yourself!

At our Christmas party, there was no sport event for once. Still, we were very active. Instead of running, jumping, or swimming, we chopped, mashed, stirred, and fried. We decided to prepare our own delicious meal together with a group cooking class. We were very proud of the finished menu. These were just our appetizers:

Bruschetta with mulled wine shallots and duck breast | Herb crêpes with salmon | Raclette potatoes | Prunes and apricots wrapped in bacon | Soup served in espresso cups | Bruschetta with cocktail shrimp | The Christmas Eve classic: potato salad with Vienna sausages.