(2022) What are tax-free payments under section 3 no. 33 EStG?

Employers can make tax and social security-free contributions to childcare in addition to wages. These can be benefits in kind, such as accommodation in a company kindergarten, or cash benefits, such as subsidies for a nursery or childminder. The condition is that the child is not yet of school age. In addition, the care must not take place in your own home.

If you pay the childcare costs yourself, you can only deduct two-thirds of the costs, up to a maximum of 4.000 Euro per child, as special expenses from tax. There is currently no cap for the employer's contribution. This means the employer can also fully reimburse expensive childcare facilities tax-free.