Company anniversary
June 18, 2012 | 35,00 EUR | answered by Dr. Yanqiong Bolik
Hello!
I am self-employed with a sole proprietorship and have the right to deduct input tax.
For a company anniversary, I would like to invite some business friends and their (marital) partners. I understand the booking and tax treatment of entertainment expenses (100% input tax deductible and 70% of net costs eligible as operating expenses). However, in addition, I will be organizing a museum visit with my guests, as well as arranging transportation to and from the museum with a bus. Furthermore, I will cover the accommodation costs for my guests.
In which "categories" should the incurred costs be booked and what is the most favorable tax treatment?
Thank you very much!
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your contribution and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information, or the ambiguity of the information can change the tax result.
According to the description of the situation, the costs for a museum visit could be considered as anniversary gifts given to secure or improve business relationships. This qualifies as a gift according to § 4 para. 5 no. 1 EStG (cf. R 4.10 EStR and Federal Fiscal Court judgment of June 23, 1993, I R 14/93, BStBl II 1993, 806). Gifts can be deducted as special business expenses if they do not exceed a total of 35 euros per recipient in the assessment period. Please note that expenses according to § 4 para. 5 sentence 1 no. 1 EStG must be recorded separately from other operating expenses. If these expenses are not already excluded from deduction due to exceeding the 35 euro limit, they may only be considered in the determination of profit if they are specifically recorded.
If the granted trip for business partners is in addition to the agreed price, the actual travel and accommodation costs are fully deductible business expenses.
I hope I was able to assist you.
If there are still uncertainties, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0) 711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
