Am I also entitled to the travel allowance if I use a company car?

You can also receive the travel allowance if you use a company car for commuting. However, you must note the following special features:

Even if your employer bases the calculation of the taxable benefit on the shortest route, you may still declare a longer route in your tax return if it is more convenient and you use it regularly.

For journeys between your home and primary workplace, you must pay tax on a surcharge in addition to the private usage value of 1 percent of the list price. This amounts to 0.03 percent of the list price per kilometre of distance for commuting each month.

In return, you may then, like any employee, claim the travel allowance of 0.30 Euro / 0.38 Euro per kilometre of distance as income-related expenses. If your employer taxes the taxable benefit for the company car at a flat rate of 15 percent, you must deduct the monthly flat-rate taxed amount from your income-related expenses and can only deduct the remainder as income-related expenses.

Even if the employer has only assumed 180 days for the calculation of the benefit value for simplification purposes, you can, for example, claim 220 days when deducting income-related expenses.

(2023): Am I also entitled to the travel allowance if I use a company car?

Can I also claim the higher travel allowance during the probationary period?

In a recent decision, the Federal Fiscal Court clarified that employees, even during a probationary period or with fixed-term employment contracts, cannot claim actual travel costs between home and work as tax-deductible expenses.

Journeys between home and the primary workplace (until 2013: regular workplace) can only be deducted using the travel allowance of 30 cents per kilometre (38 cents from the 21st kilometre) as work-related expenses. This is because the workplace is permanently assigned, allowing employees to adapt to regular commutes, for example, by forming car pools, using public transport, or living close to work.

But isn't a fixed-term employment or probationary period with the possibility of termination at any time more comparable to off-site work than to a permanent workplace? Can travel be deducted using the business travel allowance (30 cents per kilometre) and meal allowances?

Currently, the Federal Fiscal Court has ruled that even with a fixed-term employment contract and during the probationary period, work at a company facility is not considered off-site work. Consequently, travel to the workplace can only be deducted using the travel allowance, and meal allowances cannot be claimed. The permanence of the assignment to the workplace applies regardless of the fixed-term nature of the employment and the probationary period (BFH ruling of 7.5.2015, VI R 54/14).

In these cases, the employee is working at the company's location – a permanent company facility – and thus at a regular workplace. This is because the employee visits this facility not just occasionally but with a certain regularity, i.e., continuously and repeatedly. The fact that the work is only carried out for two years and the first six months of employment are subject to a probationary period does not affect the permanence of the assignment to the employer's location.

Note: The ruling refers to the legal situation before 2014 but also applies under the new legal situation from 2014. The law now clearly states: "A permanent assignment is particularly assumed if the employee is to work at such a workplace indefinitely, for the duration of the employment relationship, or for more than 48 months" (§ 9 para. 4 sentence 3 EStG).

The Federal Fiscal Court (BFH) recently ruled on fixed-term employment contracts, stating that a "primary workplace" exists if the employee is assigned to a single fixed company facility for the duration of the fixed-term employment. Consequently, travel to the workplace can only be deducted using the travel allowance, and meal allowances cannot be claimed (BFH ruling of 10.4.2019, VI R 6/17). The new legal situation since 2014 clearly states in the law (§ 9 para. 4 sentence 3 EStG): "A permanent assignment is particularly assumed if the employee

• is employed indefinitely,
• for the duration of the employment relationship, or
• for more than 48 months at such a workplace".

This means that many employees with fixed-term contracts often do not benefit from travel expense rates. Since a customer's company facility can also constitute a primary workplace, temporary agency workers are equally affected by the BFH's decision. However, there are also positive aspects to the current ruling. For example:

• If an employee is initially assigned to a primary workplace during a fixed-term employment and later to another workplace, at least the latter is no longer a "primary workplace".
• Case: A temporary agency worker was employed by an agency from May 2012. His employment was extended several times, most recently until 1 May 2015. Initially, the employee worked at a company's plant in Y. On written instructions from the agency, he was then employed for the company in X during the term of his employment contract.
• According to the BFH, the employee was assigned to two different workplaces during his continuous employment. Consequently, he could not be assigned to the second workplace in X for the "entire duration of the employment". He was also not employed "indefinitely" or for a "period of more than 48 months". In the absence of a primary workplace, the employee was allowed to claim travel from his home to the company's plant in X according to travel expense principles at 30 cents per kilometre travelled.

NOTE: If a fixed-term employment, including temporary agency work, is extended in writing before the end of the term by merely postponing the end date with otherwise unchanged contract terms, a continuous fixed-term employment exists. For the question of whether an assignment is for the duration of the employment, the continuous employment must be considered, not just the extension period. Admittedly, the BFH ruling and its implications are not easy to understand.

(2023): Can I also claim the higher travel allowance during the probationary period?

Can I also claim travel expenses for cycling?

Many employees use a bicycle for commuting to work and occasionally for off-site work. The question is what you can claim as work-related expenses in this case.

Commutes between home and primary workplace
These journeys can be claimed as work-related expenses using the commuter allowance of 30 cents per kilometre (38 cents from the 21st kilometre). The type of transport does not matter, so bicycles are also eligible.

Journeys to a fixed meeting point
Some employees do not have a "primary workplace" but must report to a fixed meeting point on the instructions of their employer and start work from there or visit different work locations. Such meeting points include vehicle depots for professional drivers, tram drivers, taxi drivers, train drivers, train attendants, etc., who always take over their vehicle at the same place.

These can also be meeting points to continue to work sites with a company vehicle, e.g. car park, meeting point at company headquarters for onward travel to construction sites. Since 2014, you can claim bicycle journeys to a fixed meeting point with the commuter allowance of 30 cents per kilometre (38 cents from the 21st kilometre). Meal allowances can also be claimed since 2014.

Currently, the Federal Fiscal Court has made an interesting decision on the subject of "journeys to the meeting point". According to this, if the meeting point is not typically visited daily for work, the journeys there can be deducted at business travel rates and not just with the commuter allowance (BFH ruling of 19.4.2021, VI R 6/19). In advance: The BFH ruling is not easy to digest, but construction workers who frequently change construction sites should read the explanations carefully, as they can save real money.

• The case: The claimant works as a construction machine operator. He travelled to the respective construction sites from a specific meeting point with a company vehicle, according to an internal company instruction. This applied to both journeys with daily return and journeys to other work locations where the claimant stayed overnight for several days. The assignments on remote construction sites usually lasted the entire week. The tax office only considered the journeys to the respective meeting point with the commuter allowance, while the claimant claimed the business travel rate of 0.30 EUR per kilometre driven. The BFH did not make a final decision but referred the case back to the lower court. However, it gave them important guidance.
• If the meeting point is typically visited daily for work, the journeys there can only be deducted with the commuter allowance. A typical daily visit to the meeting point is not sufficient to settle the employee with the commuter allowance. This means the BFH makes a strange distinction that only becomes clear at second glance.
• Typically daily visits mean that the employee is actually supposed to visit the meeting point daily to get to the construction sites from there. The employer's instructions and the planned events are decisive. Although the employee does not have to visit the meeting point every working day, they must do so with such regularity that training, unplanned assignments, or multi-day assignments on construction sites with overnight stays are the exception. It is crucial whether it is clear from the outset that the employee is only to be deployed on one-day construction sites. The employer's company structure can also play a role here.
• If the employee is more frequently deployed on multi-day remote construction sites, there is no typical daily visit to the employer's meeting point. It is only typically visited for onward travel ("daily travel") to the construction sites. In this case, the costs are to be considered at 0.30 EUR per kilometre driven. Again, the assessment does not depend on a retrospective view of events but on the employer's planned deployment of the employee.

Journeys as part of off-site work
If business trips or off-site appointments are made by bicycle, no allowance can be claimed. However, the actual expenses incurred, e.g. purchase costs, spread over the period of use, according to the proportion of business use, can still be claimed. However, this calculation is quite tedious.

Lohnsteuer kompakt: If business trips are made with an electric bicycle, a distinction must be made as to whether the bicycle is classified as a bicycle (pedelec) or as a motor vehicle (S-pedelec, e-bike) under traffic law. The latter are electric bicycles whose motor also supports speeds over 25 kilometres per hour. In this case, you can claim the business travel allowance of 20 cents per km.

(2023): Can I also claim travel expenses for cycling?

How do I enter different commuting distances after a move?

If you changed your place of residence due to a move during a tax year, the daily commuting distance to your primary workplace usually changes as well.

In this case, you must enter two primary workplaces in Lohnsteuer kompakt to input the correct distances, e.g.:

• "Workplace, address old residence"
• Distance 25 km, 112 working days, 5-day week
• "Workplace, address new residence"
• Distance 15 km, 118 working days, 5-day week

Don't forget to also claim any moving expenses in your tax return!

(2023): How do I enter different commuting distances after a move?

What is the travel allowance?

For the commute between home and primary workplace, you can claim a travel allowance (commuter allowance) as work-related expenses, regardless of how you travel to your primary workplace. This allowance is 30 cents for each full kilometre of distance, or 38 cents from the 21st kilometre onwards.

For the calculation of the distance between home and primary workplace, the shortest road route is generally decisive. It does not matter which means of transport you actually used. If you use a car, you can enter a route other than the shortest road route if it is obviously more convenient and you regularly used it for the commute between home and primary workplace.

Please note that only the one-way and shortest route to the workplace is considered as work-related expenses. This means not the return journey, and not multiple trips per day.

The travel allowance is generally limited to a maximum amount of 4,500 Euro. However, if you use your own car or a car provided for your use (e.g. company car), the maximum amount of 4,500 Euro does not apply.

The travel allowance can be claimed for the commute to the primary workplace only once per working day, even if you make the journey between home and primary workplace several times a day.

(2023): What is the travel allowance?

What is a primary place of work?

The "primary place of work" is a fixed business location of the employer to which the employee is permanently assigned. This assignment is primarily made by the employer based on employment or service regulations, whether in written or verbal form. However, even without an explicit designation by the employer, a permanent assignment is assumed if you work at the location for an extended period, namely

• indefinitely ("until further notice"),
• for the entire duration of the employment (fixed-term or permanent) or
• for a period of more than 48 months.

If there are multiple workplaces, the extent of working hours may also be decisive in determining whether a business location is considered the "primary place of work". This is the case if, according to your employment contract, you are to work there

• typically on a daily basis or
• two full working days per week or
• at least one third of your agreed regular working hours.

A "primary place of work" can also be

• a fixed location of an affiliated company (subsidiary),
• a fixed location of an external company, including at the customer's premises (temporary or agency work) or
• an educational institution attended outside the employment relationship for the purpose of full-time study or a full-time educational programme.

The "primary place of work" can also be the premises of a customer or an affiliated company if you work there for an extended period. However, this only applies if you are permanently assigned to this location by your employer. This is always the case if you work there from the outset for more than 48 months or for the duration of the employment.

No "primary place of work" can be vehicles, aeroplanes, or ships, as these are not fixed business locations of the employer. The same applies to a home office, as this is not an employer's facility.

(2023): What is a primary place of work?

How do I enter different commuting distances if I change employer?

If you changed employer during a tax year, the daily commuting distance and therefore the amount of the commuter allowance usually change as well.

If you changed employer during the year, you can easily enter multiple primary workplaces:

"Primary workplace old employer"

• Distance 30 km, 80 working days, 5-day week

"Primary workplace new employer"

• Distance 15 km, 150 working days, 5-day week

(2023): How do I enter different commuting distances if I change employer?

How do I enter travel expenses when using different modes of transport?

If you travel to your employer using different modes of transport (car/public transport/passenger in a carpool), it is best to record these with two separate entries, e.g.:

"Primary place of work, transport by car"

• Distance 25 km, 164 working days, 5-day week

"Primary place of work, transport by public transport"

• Distance 25 km, 66 working days, 5-day week

(2023): How do I enter travel expenses when using different modes of transport?

How are travel expenses recorded for car pools?

If carpools are formed for the daily commute to work, each participant in the carpool can claim the commuting allowance for themselves.

Detours to pick up and drop off passengers are not considered when calculating the distance. For the driver, travel costs are deductible as income-related expenses with no limit. However, for passengers, the maximum deductible amount is 4,500 Euro.

(2023): How are travel expenses recorded for car pools?

How do I enter travel expenses correctly if the number of my working days changes?

If the number of working days per week has increased or decreased during the year, you should make several entries for travel expenses, e.g.:

"Primary place of work, 5-day week"

• Distance 15 km, 115 working days, 5-day week

"Primary place of work, 6-day week"

• Distance 15 km, 140 working days, 6-day week

Journeys to work, specifically to the primary place of work, are deductible at a rate of 30 cents per kilometre; in 2021, 35 cents applied from the 21st kilometre, and since 2022, 38 cents apply from the 21st kilometre. In principle, every employee is required to state the exact number of working days in their tax return. The commuter allowance is only granted for these days. To check whether the number of declared working days is plausible, holiday and sick days must also be declared. Since 2020, the tax return also asks for business travel days and homeworking days.

However, it can be very tedious to determine the exact number of working days. Who keeps a daily tally? And then there are employees who also visit the workplace at weekends, sometimes unexpectedly. Therefore, the tax offices set so-called non-detection limits decades ago. They generally accepted 220 to 230 journeys for a five-day week and 260 to 280 journeys for a six-day week between home and workplace. It should be noted that these are internal limits of the tax offices, and there is no legal entitlement to their application, even though the Munich Tax Court ruled a few years ago that the tax offices should accept 230 days (FG Munich of 12.12.2008, 13 K 4371/07).

The pandemic has changed everything. Many work from home and do not have daily commutes to the workplace. In such cases, they can claim 6 Euro per day as business expenses or even the costs for a home office. However, travel expenses cannot be claimed due to the lack of journeys. The tax authorities now increasingly require an employer's certificate confirming the actual working days and visits to the primary place of work. The previous rule of 220 or 230 journeys per year no longer automatically applies in the Corona years.

(2023): How do I enter travel expenses correctly if the number of my working days changes?

Can I claim tax relief for a parking space rented for work?

Normally, the costs for a parking space are covered by the travel allowance. If, as an employee, you rent a parking space near your workplace, no deductible business expenses are incurred. The costs for the parking space (parking fees, parking costs) are covered by the travel allowance.

As always, there are exceptions: If you cannot do without a parking space due to a second household, off-site work, a (proven) disability, or unavoidable circumstances, you can claim the proven and justified expenses for tax purposes.

(2023): Can I claim tax relief for a parking space rented for work?