Flat rate for advertising expenses 2023: Tips for optimal tax savings

Flat rate for advertising expenses 2023: Tips for optimal tax savings

According to a report by www.merkur.de, certain costs can be deducted as income-related expenses, with the flat-rate income-related expense allowance for 2023 being 1,230 euros. Employees should keep an eye on whether they are already close to this limit, as further spending can reduce the tax burden. In addition, from 2024, the acquisition costs for work equipment that are not considered digital assets will rise from 952 euros to 1,190 euros.

Increasing the income tax allowance can lead to employees claiming more expenses in order to take full advantage of the tax savings. In addition, the increased purchase limits for work equipment for 2024 are expected to mean that employees are more likely to purchase more expensive work equipment in the coming year in order to maximize the tax saving effect.

The changes could impact the work equipment market as demand for more expensive work equipment could increase in the coming year. The financial industry will also have to adapt to these changes, as the adjustment of the income tax allowance will have an impact on employees' tax savings. Employees will likely strive to plan their spending to achieve the maximum possible tax savings.