Ask a tax advisor on the topic of Other questions to tax advisors

Rental apartment at the workplace

May 11, 2010 | 20,00 EUR | answered by Michael Herrmann

I will soon be working 350 km away from my current place of residence for a project. My employer wants to reimburse me for rent (including utilities) and trips home tax-free (for me). Does the employer have to pay taxes on these expenses (flat rate) or can he deduct them as operating expenses?

Michael Herrmann

Dear inquirer,

First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is given according to the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

The employer can reimburse the employee for expenses related to a work-related double household management, such as travel costs, meal allowances, accommodation costs, tax-free, see § 3 No. 16 EStG and R 43 LStR or R 9.11 LStR 2008.

A double household management requires that the employee is employed outside of his place of residence and maintains a second accommodation at the place of employment or in its vicinity for professional reasons. The necessary additional expenses can be deducted as business expenses, to the extent that they are not reimbursed tax-free by the employer (R 9.11 Para. 10 LStR 2008). Employer reimbursement reduces the employee's tax burden.

The resulting wage costs are operating expenses for the employer.

I hope that this information has provided you with an initial overview of the situation and remain

Yours sincerely,

Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor