(2023)
When can teleworkers claim tax relief for their home office?
As of 1 January 2023, the tax treatment of "home office" and "homework" has been redefined. There are two scenarios to distinguish between (§ 4 para. 5 no. 6b and 6c EStG, amended by the "Annual Tax Act 2022" of 16 December 2022; BMF letter of 15 August 2023, IV C 6-S 2145/19/10006):
1. Home office as the centre
If the home office is the "centre" of your professional activity, the home office costs can be deducted as follows:
- Either the actual amount.
- Or with an annual allowance of 1,260 Euro as business expenses or operating costs.
It must be a "genuine" home office, used exclusively for work and containing no personal items. Examples include writers, translators, or IT professionals who work almost exclusively from home.
2. Not the centre, but work from home
If your home office is not the "centre" but you also work from home, you can deduct the following for tax purposes:
- A daily allowance of 6 Euro for a maximum of 210 days per year, up to a maximum of 1,260 Euro per year.
The workspace in the home does not need to meet any special requirements, whether it is a work corner, the kitchen table, or a separate room.
Details on "Home office as the centre"
- The annual allowance of 1,260 Euro is a flat rate and does not need to be proven up to this amount.
- The option to deduct the annual allowance instead of the actual expenses applies uniformly for the entire year and can be exercised until the tax assessment becomes final.
- The annual allowance is considered on a monthly basis and is reduced monthly if the conditions are not met.
- The annual allowance is personal and cannot be claimed for different activities.
- A deduction of the daily allowance (6 Euro per day) for the same period is not permitted.
- If several people share a home office, eligibility is checked individually.
These are the new regulations from 2023 regarding the tax treatment of expenses for "home office" and "homework."
Example 1:
A and B share a home office with 50% usage each. The home office is the centre of business or professional activity only for A. The total costs are 4,000 Euro and are divided accordingly.
A can deduct 2,000 Euro as business expenses or operating costs, while B can only claim the daily allowance of 6 Euro per day for working in the home office.
Example 2:
A and B use a shared home office as the centre of their professional activity for the entire calendar year. They waive the division of costs and can each deduct the annual allowance of 1,260 Euro as business expenses or operating costs.
Details on "Work from home, but not the centre"
The tax relief for working from home has changed since Corona. Here are the key points:
- From 1 January 2023, the home office allowance is permanent and increased. The amount has been raised from 5 Euro to 6 Euro per day and can be claimed for a maximum of 210 homework days. The maximum amount is now 1,260 Euro per year.
- The term "home office allowance" has been changed by the legislator to clarify that it concerns professional activity in the home, regardless of whether it is the main or holiday home. Therefore, it is now referred to as a homework allowance or simply a daily allowance.
- No special requirements are needed for the workplace in the home to receive the daily allowance. It does not matter whether you work at the kitchen table, in a work corner, or in a separate room. All (additional) expenses for using the home are included in the daily allowance.
- The daily allowance is 6 Euro per day and can be deducted if more than half of the daily working time is spent at home. The total amount is limited to 1,260 Euro per year (210 days x 6 Euro). Costs for work materials can be deducted additionally.
- Employees with a recognised home office can choose between the annual allowance of 1,260 Euro and the daily allowance of 6 Euro per day; this cannot be done simultaneously. The deduction always refers to the entire business and professional activity.
- If taxpayers have different business or professional activities, both the daily allowance of 6 Euro and the maximum amount of 1,260 Euro can be allocated to different activities or assigned to one activity. The amounts cannot be deducted multiple times for different activities.
- In the case of double housekeeping or costs for a home office, an additional deduction of the daily allowance is not permitted.
- The daily allowance is offset against the employee allowance of 1,230 Euro, so tax savings only occur when total business expenses exceed 1,230 Euro.
- Taxpayers must record and substantiate the calendar days on which they claim the daily allowance.
The tax relief for working from home now offers greater opportunities to claim the associated expenses for tax purposes.
