Dear Clients,
As the former German Chancellor Helmut Schmidt once put it in a nutshell, those who are obliged to pay taxes also have the right to save taxes. In this sense we send you the following information on the Home office allowance.
Home office
The tax authorities generally define home office as working at home (the employee`s house, apartment). However, this term not only covers the employee's private home, but also the home of his or her partner or close relatives if the employee works from their home. Restaurants, cafés, clubhouses or parks, on the other hand, are not covered.
Agreement between employer and employee
The requirement for the home office allowance is an agreement between the employer and employee. This agreement can be based on the collective agreement or an individual agreement, but also a company agreement. Working from home on the basis of instructions from the employer is also considered an agreement.
Home office days
Home office days are only those days on which the entire professional activity is carried out exclusively at home. For example, if the employee only works half the day at home and then travel to the office or on a business trip, this is not a home office day. The extent of the employee's work (full-time/part-time) is not relevant in this context. The days worked from home must be recorded.
Payment of a home office allowance
The employer can pay employees who work from home up to EUR 3 per home office day tax-free to cover their additional expenses in connection with the home office. This is possible for a maximum of 100 home office days per year. This means that up to EUR 300 per year and employee can be paid tax-free. If a higher lump-sum payment is agreed, the excess amount is taxable.
Home office days on the annual payslip (L16)
The employer must indicate the days spent working from home in the entire calendar year on the annual payslip (L16). This note on the annual payslip is a requirement for the tax exemption of paid home office days as well as for the consideration of the home office lump sum as income-related expenses in the employee´s tax return (see next point).
Home office allowance as income-related expenses
If the tax-free maximum amount of EUR 3 per day is not fully utilized or the employer does not grant a home office allowance at all, the employee can claim the difference as income-related expenses in his tax return.
The requirement is that the home office days are recorded by the employer and entered accordingly in the annual payslip (L16). (see above).
Example:
A works exclusively at home on 115 days in 2023. He receives a home office allowance of EUR 3 per day for 50 days from his employer, i.e. a total of EUR 150. A can therefore claim an amount of EUR 150 (= difference to the maximum amount of EUR 300) as income-related expenses in his employee tax return.
Best regards
Manfred Gross
Vienna, April 2024
