(2023) What are representation costs (partially deductible business expenses)?

Expenses related to the lifestyle of the taxpayer or other persons are generally not deductible as business expenses. Representation expenses that are business-related are only deductible "to the extent that they are not considered unreasonable according to general business standards" (§ 4 para. 5 no. 7 EStG).

This could include, for example, a particularly expensive car or excessively luxurious office furnishings.