(2025)
What should I know about the new 48-month limit?
Principle: What does the 48-month limit mean?
Since 2014, the so-called 48-month limit has applied to off-site work. It is crucial in determining whether there is a primary place of work or whether travel expenses (travel, accommodation, incidental costs, and meal allowances) can be claimed in full as business expenses.
1. 48-month limit at the primary place of work
A primary place of work is a fixed business location to which the employee is permanently assigned. Such an assignment is assumed if the employee is there:
- indefinitely ("until further notice"),
- for the entire duration of the employment relationship, or
- initially for a period of more than 48 months
Tip: If the assignment is for a maximum of 48 months, there is no primary place of work. This means: Travel costs, meal allowances, and accommodation costs can be claimed as business expenses according to the travel expense principles or reimbursed tax-free.
2. 48-month limit for work at customer premises
A primary place of work can also exist at a customer's premises (e.g. in the case of temporary work or project work) – especially if the employee is:
- initially assigned for more than 48 months or
- for the entire duration of the employment relationship
- assigned to the customer's premises.
3. 48-month limit for accommodation costs
Since 2014, accommodation costs for off-site work can only be fully deducted for 48 months. From the 49th month, they are limited to 1.000 Euro per month – but only for domestic work.
Tip: An interruption of at least six months resets the 48-month period.
4. Current case law on the 48-month limit
The Munster Finance Court ruled: Even multiple fixed-term assignments of < 48 months do not lead to the assumption of a primary place of work – even if the total assignment lasts more than 48 months (Munster Finance Court, 25.03.2019, 1 K 447/16).
5. Special features for temporary agency workers
Temporary agency workers are employed by the lender but work for the borrower. Point of contention: Can travel costs to the place of work be deducted according to travel expense principles or only with the commuting allowance?
Position of the tax authorities
- The primary place of work is with the borrower if there is a permanent assignment – i.e.:
- indefinitely,
- for the duration of the employment relationship, or
- initially for more than 48 months
- Travel costs can then only be deducted with the commuting allowance (BMF letter dated 25.11.2020, BStBl 2020 I p. 1228).
Decision of the Federal Fiscal Court (BFH)
On 17.06.2025 (Ref. VI R 22/23), the BFH ruled: An indefinite assignment for temporary agency workers is not possible due to the German Temporary Employment Act (AÜG).
- According to § 1 para. 1b AÜG, a temporary agency worker may work for the same borrower for a maximum of 18 months.
- A permanent assignment is therefore legally excluded – and thus also the assumption of a primary place of work with the borrower.
Case study (BFH VI R 22/23)
A temporary agency worker had been employed indefinitely by an agency since 28.11.2015 and had been working for a borrower for over three years from 2015. He claimed his travel costs according to travel expense principles, but the tax office only recognised the commuting allowance. The BFH ruled in favour of the claimant:
- Even for assignments before 01.04.2017, there is no permanent assignment.
- Even with repeated fixed-term assignments, no primary place of work is created.
Further case law
As early as 20.11.2024, the Dusseldorf Finance Court made a similar decision (Ref. 15 K 1490/24 E). Although an appeal was lodged, it was later withdrawn by the tax office – apparently in recognition of the BFH's legal opinion.
Tip for temporary agency workers
Even with longer assignments at the same borrower: Check whether a permanent assignment in the tax sense actually exists. In many cases, travel costs can be claimed according to travel expense principles.
Note: The tax authorities do not yet recognise the employment law regulations of the AÜG in tax law. Nevertheless, the BFH case law provides a solid basis for appeals.
