Deduct business expenses for stays abroad

What are advertising expenses?

• The legislature has clearly defined what counts as income-related expenses from a tax point of view. Accordingly, advertising costs are all costs of a taxpayer who serves to acquire, secure and maintain income that justifies an income tax liability in accordance with the Income Tax Act (EStG).
• Furthermore, the legislature has stipulated that such advertising expenses, provided that they meet the conditions mentioned are deducted from the respective income of the tax debtor in the income tax return can.
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• If there are no or only low advertising costs, a flat rate can be applied. In the case of higher amounts, however, the composition of the income-related expenses must be explicitly proven by the tax debtor.

The income-related expenses for stays abroad

In the case of professionally motivated measures, stays abroad are usually of a limited nature. The Düsseldorf Finance Court (judgment of January 14, 2013, Az.: 11 K 3180/11 E) recently made a fundamental decision on income-related expenses for stays abroad. This assumes that every job-related stay abroad is only a temporary, i.e. temporary, condition.

• Rental costs for a property rented abroad for residential purposes are therefore generally not deductible by the taxpayer as income-related expenses. Nor are journeys between home and work abroad. Only the distance flat rate that is also valid within the Federal Republic of Germany is recognized.


Deduct account management fees - this is how it works as income-related expenses

Nowadays, wage and salary payments are almost exclusively cashless ...

• The reason given for this is that the Federal Republic of Germany continues to be the main residence of the taxpayer during a temporary stay abroad and that the expenses incurred abroad were incurred as part of his double housekeeping and are therefore already taxed as income-related expenses can.

Recognized income-related expenses when staying abroad

According to Section 12 of the Income Tax Act (EStG), income-related expenses for stays abroad are tax-deductible:

• The taxpayer's relocation costs. This includes all types of costs that arise for moving abroad and returning to the Federal Republic of Germany; for example forwarding costs for the transport of furniture and furnishings.
• the ride costs for family trips home of the taxpayer. If the taxpayer travels to family celebrations or at Christmas, Easter or Pentecost to visit his relatives in the Federal Republic of Germany, according to Section 12 of the Income Tax Act (EStG), these costs are classified as income-related expenses for tax purposes deductible.
• The taxpayer's fees for visas etc. This includes all types of costs and fees associated with the administrative handling of the stay abroad.
• The distance lump sums for commuting to work abroad. As in Germany, these can be billed at up to 30 cents per kilometer for a one-way trip if you use your own car.
• The taxpayer's accommodation costs. This includes accommodation costs of up to EUR 1,000 per month.
• The taxpayer's telephone costs. However, the restriction to up to 15 minutes per phone call applies.
• The taxpayer's additional meal expenses. However, these are recognized for a maximum period of up to three months.