Terminating double household management and home trips for Germans living in Austria.
April 4, 2013 | 40,00 EUR | answered by StB Patrick Färber
As a German, I am planning to work for an Austrian company in Austria on a permanent basis. My wife works in Germany. The family residence will remain in Germany, and a second residence for me is planned in Austria during the week. The distance is approximately 700 km. Can travel and accommodation expenses be deducted, if so, where? What should be considered?
Dear inquirer,
Based on the information provided, I would like to answer your question within the scope of the following:
Due to your residency in Austria and simultaneous remaining residency in Germany, you will initially be subject to unlimited tax liability in both countries. The double taxation agreement between Germany and Austria stipulates that income earned in Austria can only be taxed by Austria. However, if you are active for your employer in a third country (business trips), then Germany has the right to tax. Germany reserves a so-called "progression clause," meaning that if you and your wife have other income in Germany, your Austrian income will be taken into account in determining the tax rate. Further explanations can be provided upon request.
It seems that you are not a border commuter (> 30 km), and hopefully, you are not a board member or managing director (that would change things).
The conditions for a dual household management should be met (without knowing the specifics of the case). These costs (weekly family trips of 700 km x 0.30 EUR, rent for a second apartment up to 60 sqm, furniture costs, daily subsistence allowances of EUR 24 in the first 3 months, travel days only EUR 12, moving costs, etc.) are essentially deductible as employment-related expenses. However, since your income from Austria is tax-free (with progression clause), these costs usually have only a minimal effect on the tax rate. You must declare your gross income from Austria in the annex N-AUS and then deduct these household management expenses.
If you move to Austria during the year with income in both Germany and Austria, the progression clause will apply in the year of relocation. If your wife works in Germany, separate assessment is recommended to ensure that your Austrian income does not increase the tax rate of your wife's income in Germany.
Is this approximately the information you needed?
Kind regards,
Patrick Färber
Tax advisor
patrickfaerber@arcor.de
