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 the travel allowance be claimed during the probationary period?

Even during a probationary period or with fixed-term employment, the statutory travel allowance applies: Journeys between home and primary workplace can only be claimed as work-related expenses at 30 cents per kilometre (from the 21st kilometre: 38 cents).

No off-site work despite probation or fixed term

The Federal Fiscal Court (BFH) has clarified that work during a probationary period or under a fixed-term employment contract does not constitute off-site work – even if it can be terminated at any time. The decisive factor is the permanent assignment to a fixed business location (§ 9 para. 4 sentence 3 EStG). Meal allowances cannot be claimed either (BFH, judgement of 07.05.2015, VI R 54/14).

Legal regulation on "primary workplace"

Since 2014, a primary workplace exists if the employee is permanently assigned to a specific workplace

• indefinitely,
• for the duration of the employment relationship, or
• for a period of more than 48 months

(§ 9 para. 4 sentence 3 EStG). This also applies to fixed-term employment (BFH, judgement of 10.04.2019, VI R 6/17).

Special case: Change of workplace in temporary employment

If an employee changes their place of work during a single (extended) fixed-term employment, the second workplace may no longer be considered the "primary workplace". In this case, travel costs may be deducted according to travel expense principles at 30 cents per kilometre travelled.

Example:
A temporary worker is initially assigned to plant Y and is later permanently transferred to plant X – within the same fixed-term employment. Since the second assignment does not apply for the entire duration of the contract, there is no primary workplace. Travel to plant X can therefore be claimed according to travel expense principles.

Note on contract extension

If a fixed-term employment contract is extended in writing – with otherwise unchanged content –, the entire employment relationship is considered as one. For tax purposes, the entire contract duration is relevant, not just the extension period.

Can the travel allowance be claimed during the probationary period?

Can I also claim travel expenses for cycling?

Yes, cycling to work or to a meeting point can also be claimed for tax purposes – but under certain conditions and with different allowances.

Journeys to the primary workplace

The commuter allowance applies for the journey between home and primary workplace – regardless of the means of transport. Cyclists can also:

• claim 30 cents per kilometre (from the 21st kilometre: 38 cents) as income-related expenses.

Journeys to a fixed meeting point

If you do not have a primary workplace but have to regularly visit a fixed meeting point (e.g. car park, company premises), you can also claim the commuter allowance for cycling.

Note: Additional meal allowances are possible if you then go on a business trip.

Special case: Meeting point not visited daily

The Federal Fiscal Court (BFH) has ruled: If a meeting point is not visited daily, travel expense principles apply. Then you can:

• claim 30 cents per kilometre travelled (round trip).

Example:
A construction machine operator travels several times a week from a meeting point with a company vehicle to long-distance construction sites where he stays overnight. As the meeting point is not visited daily, the BFH recognises a business trip and allows the deduction of the business travel allowance (BFH ruling of 19.04.2021, VI R 6/19).

Important: The employer's planning counts – not a later review. If overnight stays are regularly expected, it is not considered a daily visit.

Journeys as part of business trips

If you use a bicycle for business purposes (e.g. client meetings), you cannot claim an allowance. Instead, the actual costs can be partially deducted according to business use (e.g. depreciation on purchase costs).

Special regulation for electric bicycles

For business trips with e-bikes, the legal classification is important:

• Pedelecs (motor assistance up to 25 km/h): These are legally considered bicycles. For journeys as part of a business trip, no mileage allowance can be claimed. Only the actual, proven expenses can be partially deducted (e.g. depreciation, repair costs).
• S-Pedelecs (motor assistance over 25 km/h): These are legally considered motor vehicles. For journeys as part of business trips, the car mileage allowance of 20 cents per kilometre can be claimed (§ 9 Abs. 1 Satz 3 Nr. 4a EStG).

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?