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

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

Yes, you can receive the travel allowance even if you use a company car for commuting. However, there are some special conditions to consider:

Most favourable route:

Even if your employer uses the shortest route to calculate the taxable benefit, you may specify a longer route in your tax return if it is more favourable in terms of traffic and you use it regularly.

Surcharge for commuting:

For journeys between your home and primary workplace, you must pay tax on a surcharge in addition to the private usage value of 1% of the list price. This amounts to 0.03% of the list price per kilometre of distance per month. In return, you can deduct the travel allowance of 0.30 Euro or 0.38 Euro per kilometre as income-related expenses, just like any other employee.

Taxation by the employer:

If your employer taxes the company car at a flat rate of 15%, you must deduct the flat-rate taxed amount from the income-related expenses claimed. Only the remaining amount can be deducted as income-related expenses.

Simplification rule:

Even if the employer only uses 180 days to calculate the benefit, you can specify 220 days for your income-related expense deduction, for example.

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, e.g., 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 the journeys 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, permanent work at a company facility is not considered off-site work. Consequently, journeys 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 whether the employment is fixed-term and a probationary period is agreed (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 to work at a single fixed company facility for the duration of the fixed-term employment and is assigned there. Consequently, journeys 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). This is because, under the new legal situation since 2014, the law clearly states (§ 9 para. 4 sentence 3 EStG): "A permanent assignment is particularly assumed if the employee

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

As a result, many employees with fixed-term contracts often do not benefit from travel expense rates. Since a customer's company facility can also establish a primary workplace, temporary agency workers are equally affected by the BFH's decision. However, the current ruling also has positive aspects. 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 site 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 single employment relationship. Consequently, he could not be assigned to the second workplace in X for the "entire duration of the employment relationship". He was also not "indefinitely" employed nor 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 site in X according to travel expense principles at 30 cents per kilometre travelled.

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

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 for tax purposes in this case.

Commutes between home and primary workplace
These journeys can be claimed as work-related expenses using the distance 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 travel to 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 to continue to construction sites. Since 2014, you can claim bicycle journeys to a fixed meeting point with the distance 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". It states: 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 distance 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 distance 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 the court important guidance.
• If the meeting point is typically visited daily for work, the journeys there can only be deducted with the distance allowance. A typical daily visit to the meeting point is not sufficient to apply the commuter allowance. The BFH thus 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 is not based 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 laborious.

Lohnsteuer kompakt: If business trips are made with an electric bicycle, a distinction must be made as to whether the bicycle is legally classified as a bicycle (pedelec) or as a motor vehicle (S-pedelec, e-bike). 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.

Can I also claim travel expenses for cycling?

How do I enter different commuting distances after a move?

If you changed your 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!

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 determining 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 round trip, 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.

What is the travel allowance?

What is a primary place of work?

The primary place of work is a fixed business location to which an employee is permanently assigned. This assignment is usually made by the employer based on employment or service agreements, whether written or verbal. Even without explicit assignment, a permanent position is considered if you:

• are employed for an indefinite period ("until further notice"),
• for the entire duration of the employment relationship, or
• for more than 48 months

at the workplace.

Multiple workplaces

If you have multiple workplaces, the business location is considered the "primary place of work" if you:

• typically work there daily,
• work there at least two full days per week, or
• spend at least one third of your regular working hours there.

Other possible "primary places of work"

A "primary place of work" can also be:

• a fixed location of an affiliated company (e.g. subsidiary),
• a customer's business premises if you work there permanently,
• an educational institution attended for full-time study or training.

Not recognised as a "primary place of work":

• Vehicles, aircraft, or ships (as they are not fixed locations),
• the home office (not an employer's facility).

Commuting allowance for journeys to the primary place of work

For journeys to the primary place of work, employees may only claim the commuting allowance:

• 0.30 Euro per kilometre for the first 20 km,
• 0.38 Euro from the 21st kilometre.

Special case: Self-employed

For self-employed individuals working permanently for a single client, the Rhineland-Palatinate tax court has ruled that they may also only apply the commuting allowance (0.30 Euro per kilometre). Travel costs cannot be deducted using the business travel allowance (0.30 Euro per kilometre travelled) or the actual costs (judgment of 19 June 2024, 1 K 1219/21). The appeal is pending at the Federal Fiscal Court (Ref. VIII R 15/24).

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 changes 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

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 enter these as 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

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

How are travel expenses recorded for car pools?

If car pools are formed for the daily commute to work, each participant in the car pool can claim the commuting allowance for themselves.

Detours to pick up and drop off passengers are not taken into account when calculating the distance. For the driver, travel costs can be deducted as business expenses without limit. However, for passengers, the maximum deductible amount is 4,500 Euro.

How are travel expenses recorded for car pools?

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

Enter travel expenses correctly when workdays change

If the number of your workdays per week changes during the year, you should allocate the travel expenses accordingly in your tax return. Here is an example of how to make the entries:

1. Record the different work periods

If you had a 5-day week and later a 6-day week in one year, you should create two entries for the travel expenses:

• Period with 5-day week:
  
  • Distance: 15 km, Workdays: 115 days, Note: 5-day week
• Period with 6-day week:
  
  • Distance: 15 km, Workdays: 140 days, Note: 6-day week

2. Commuter allowance

The commuter allowance is 30 cents per kilometre. Higher rates apply from the 21st kilometre:

• 2021: 35 cents from the 21st kilometre
• Since 2022: 38 cents from the 21st kilometre

3. Specify holiday and sick days

To record the commuter allowance correctly, the actual workdays must be specified. The tax office may also request holiday and sick days.

4. Home office and employer's certificate

If you worked from home, you can claim 6 Euro per day as business expenses (max. 1.260 Euro per year). In this case, no travel expenses may be entered. In many cases, an employer's certificate confirming the workdays is also required.

5. Non-detection limits of the tax offices

The tax offices accept the following journeys without proof:

• 5-day week: 220 to 230 journeys
• 6-day week: 260 to 280 journeys

These non-detection limits are not legally binding. They are only for guidance, and there is no legal entitlement for the tax office to automatically accept them.

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. Therefore, if you rent a parking space near your workplace as an employee, 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 (verifiable) disability, or unavoidable circumstances, you can claim the proven and justified expenses for tax purposes.

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