Different levels for tax-free travel expenses and the claim for travel expenses

The fact that all taxpayers are equal, but some are more equal, once again highlights the difference in the level of travel expenses allowances or the deductibility, depending on whether it is income from self-employment or non-self-employment and which activity is carried out.

:: Business trip § 26 Z 4 EStG, Rz 699 ff LStR

A business trip occurs when the employee, at the request of the employer, leaves their place of work to perform services, or
working so far from the family residence that a daily return is not feasible, unless a new focal point of activity is created (duration of assignment longer than one week).
There is no minimum distance required. A „trip around the corner“ is sufficient!

Tax-free cost reimbursements

• Travel costs: Either according to the actual amount on the receipt, or for trips with the employee's own car € 0.36 per km.
• Current account: I'm Inland, If longer than 3 hours € 2.20 per hour started, maximum € 26.40 per day. If a working meal is paid for, there is a reduction of € 13.20 per meal.
  I'm Abroad The maximum rates for federal employees (travel fee regulation) apply if the trip lasts longer than 5 hours. For trips over 5 hours, 1/3 of the full rate, for trips over 8 hours, 2/3 of the full rate.
• Night fee: Either the actual expenses according to the receipt (including breakfast), or without proof, a flat rate of € 15 / night in Germany, the maximum rates in foreign countries according to the RGV for federal employees.
• Travel between the home and workplace is not considered a business trip. The costs of these trips are deducted from the travel allowance / commuter allowance.

These cost reimbursements are also in accordance with § 49, paragraph 3 of the ASVG. contributors are not required, Provided that a genuine employment relationship exists. In the case of free employment relationship However, this is not the case, because self-employed workers receive income from entrepreneurial activity (self-employment or business operation). Such cost reimbursements are therefore due to self-employed workers. socially obligatory, Since § 49, paragraph 3, of the ASVG only regulates contribution freedom for a genuine employment relationship, in terms of income tax, the cost reimbursements constitute taxable income, for which the corresponding travel expenses are considered expenses.

:: Professional trip Section 16, paragraph 1, item 9 of the EStG, paragraph 278 ff of the LStR

This condition is present when

• the taxpayer is at least 25 kilometers from the center of activity in order to perform professional obligations; and
• the journey takes more than 3 hours in the country or more than 5 hours abroad, and
• no further focus of activity is justified.

In this case, it is income from not an operational activity (not self-employed activity, rental and leasehold, capital income and other income). Additional expenses can be included as Advertising expenses The claim is made as follows:
Current account at the level of the flat-rate amounts under § 26 Z 4 EStG, however only if an overnight stay is required.
As Travel expenses The actual costs or the use of one's own car can be claimed for in the form of km-money at the rate of € 0.356 / km - however, only up to a maximum of 30,000 kilometers.
For the Night fee the same provisions apply as for business travel.

:: Business trip Section 4, Paragraph 5 of the EStG, Rz 1378 EStR

This is about Business income (Agriculture and forestry, commercial enterprises and self-employed activities).
This travel definition corresponds to the business travel defined in § 16, paragraph 1, item 9 of the EStG, but differs from the business travel defined in § 26, paragraph 4, of the EStG. Trips between the place of residence and the place of work are not considered travel; however, the travel costs are considered operating expenses in the actual amount, unless the place of residence is located for personal reasons outside the usual distance from the place of work. It is possible to have several points of activity (e.g., branch offices, deployment location or area, a vehicle with which daily trips are made on the same routes, etc.). This results in the fact that a stay at these locations does not constitute a trip.

- Travel costs

Additional expenses for food and accommodation are deductible as operating expenses without proof of actual amount, if they do not exceed the amounts as per § 26 Z 4 EStG. Current account can only be claimed if there is a Night shift required is.
Travel expenses They can be deducted in the actual amount, or when using a non-operational car with a €0.356/km rate, but only up to 30,000 kilometers. Furthermore, the tax office assumes that the vehicle is to be considered more than 50% as necessary operating assets for income tax purposes, and that the actual operating expenses are therefore to be deducted.

- Input VAT deduction

Both the flat daily and overnight fees can be claimed by the employer as VAT with 9.0909%. The same applies to the employer as the person providing the service for the employee’s business travel costs.

:: Travel costs for training and further education Sections 4(4), Z 7 and 16(1), Z 10 of the EStG, Paragraph 365 of the LStR

In addition to the immediate costs (course fees, scripts, etc.), there may also be Daily and overnight allowances as well Travel expenses as advertising costs or operating expenses. However, the distance must be at least 25 kilometers. As km money, € 0.356/km can be claimed, as daily cash after hours up to a maximum of € 26.40/day, and as overnight accommodation fee a lump sum of € 15 per night in the country. If Night fee including breakfast actual height is claimed, it is with Limited to € 81.45. This amount is calculated from the maximum amount for federal employees of €18.10, increased by 350%. The same applies for travel abroad. For Germany and Italy, the overnight fee is €27.90; therefore, a maximum of €125.55 can be claimed per night. In Switzerland, it is €147.15 (calculated from €32.70). If a seminar lasts longer than 5 days, the daily allowance is waived due to the establishment of a new focal point of activity.

:: Travel costs for association activities (Rz 774 VereinsRL)

The tax-free travel expenses allowances for officials, coaches, masseurs, athletes, artists, etc. in the context of their club activities amount to:
Food costs up to 4 hours € 13.20, over 26.40 € per day maximum.
Travel expenses, The cost of the mass transport means plus a travel cost reimbursement of €3,- to €4 hours only €1.50.
There is no minimum limit for travel; however, the fact of a trip must be proven (e.g., records from the association).
If km-money is charged, it must be deducted from the costs of the mass transport means that are tax-free and from the travel allowance. Since on the one hand Nightly allowances If they are not mentioned in the VereinsRL, but are listed instead as so-called „entertainment costs“ in connection with travel and accommodation costs, the question arises as to the claim for accommodation fees and what is meant by entertainment costs when traveling. However, the calculation of flat-rate accommodation costs of € 15 in Germany is not likely to be tax-disruptive. If the person themselves bear part of the travel expenses, these can be claimed as advertising expenses or operating expenses. In addition to the tax-exempt allowances, there is another tax-exempt allowance for officers of up to € 75 per month.
This travel expense policy does not apply to employees of the association.

:: Wage-forming regulations Section 68 of the EStG and Rz 734ff of the LStR

Due to the reference in § 26 Z 4 of the EStG to § 68 of the EStG, salary-related provisions become directly applicable law, provided they are more favorable with respect to the concept of business travel than the EStG. This includes, in particular, collective agreements, works council agreements, service regulations, etc. This includes, for example: the determination of the place of work, the duration of the business trip, and the calculation of remuneration based on calendar days. However, no changes are possible with regard to the tax-exempt amounts stipulated in the EStG and a shorter duration of the business trip.

:: Travel fee regulation

For federal employees, the RGV, according to VO BGBl 87/2001, is effective as of 2002. The overnight fee for domestic travel is €18.10, according to § 13, paragraph 1 of the RGV.
For foreign travel, according to § 26 Z 4 EStG, the maximum rates (there are 4 fee levels) for daily and overnight charges apply for business trips and professional or business travel.

:: Summary of the differences

- Educational trip

Minimum distance: 25 km
Night fee after receipt of proof: Maximum limits (inland e.g. 81.45)
Kilometer fee: € 0.356 / km

- Association activities (according to VereinsR)

No minimum distance
Food costs: Up to 4 hours € 13.20, over 26.40
Travel costs: Mass transport plus travel expenses reimbursement, up to 4 hours € 1.50, over that € 3,-. Mileage money with credit.
Nightly fee: Not specifically mentioned in the club rules (but it is „maintenance costs“?)

- Wage-forming regulations

More favorable regulations for the term “business travel” become part of the law.

- Travel fee regulation

For federal employees, the flat nightly fee is € 18.10. The fee level 4 also applies to the EStG for foreign travel.
It is astonishing that the case law finds the inequalities in the definitions of travel costs and, in particular, in daily allowances to be factually justified. What factual justification is there for employees receiving tax-free daily allowances for a „trip around the corner“ of 4 hours or more, while the entrepreneur, when he is on the road from early in the morning until late at night, has no entitlement to an additional expense for meals without accommodation, because the judges think he could easily subsist on a snack?.

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