Flat rate for business expenses 2024: Everything you need to know

Flat rate for business expenses 2024: Everything you need to know

The flat rate for business expenses plays an important role in allowing certain expenses related to professional activity to be claimed against tax. For the tax year 2023, the flat rate for business expenses, also known as the employee flat rate, is 1,230 euros. This amount is automatically deducted from the tax without the need for further documentation. If additional advertising costs are specified, these will only be taken into account if they exceed the flat rate.

Advertising costs also include the distance allowance, also known as the commuter allowance, which covers the costs of daily journeys between home and work. Furthermore, home office costs can be claimed, but only if they exceed the amount of the flat-rate business expenses allowance. A flat-rate moving fee of 886 euros per year is available for work-related moves.

In order to benefit from the flat rate income tax allowance, the corresponding costs must be stated in the annual tax return. These are listed in Appendix N (income from employment) of the tax return. If the advertising costs exceed the flat rate, it is advisable to also declare the additional costs in order to achieve further tax advantages. It is important to keep receipts carefully and differentiate between personal and professional expenses.

The flat-rate income tax allowance offers employees the opportunity to reduce their tax burden and thus earn more net income. By correctly reporting advertising costs on the tax return, taxpayers can take advantage of the various tax benefits available to them. It is therefore advisable to find out about the applicable flat rate amounts and take them into account when filing your tax return.