German Tax Return – Rebate on business expenses

While filing your German Tax return, you can claim tax rebate on business expenses. Finanzamt provides a lump sum amount of EUR 1000 per year towards business expenses. This is part of default tax calculations done by employer. But if you have business expenses more than EUR 1000 per year then you can declare them and get tax rebates. Maximum EUR 4500 can be claimed for tax rebate under business expenses. German Tax system

Heads under which tax rebates can be claimed under Business expenses while filing German Tax Return

1. Expenses for traveling from home to office
2. Relocation expenses (e.g. you moved from India to Germany or within Germany)
3. Cost for professional development like professional books, training, language course etc.
4. Expenses for professional equipment e.g. Laptop, desktop etc.

If the sum of expenses don’t exceed EUR 1000 per year, there is no extra tax refund. Because this is automatically done by employer.