Whether Carnival celebration, anniversary or summer festival: celebrations are an important tool to promote the work climate. Often this entails high sums, especially when events are held in a stylish ambience or participate the domestic partners of employees. With the "Customs Code Amendment Act" called the tax environment for corporate events have changed now. If the cost to the allowance of 110 euros per person, the Treasury collects considerably less taxes. But beware: The tax-free amount is exhausted faster than before due to the new rules. Companies should make themselves early with the new requirements.
Expanded tax-relevant costs
Until now for business events, a threshold of 110 euros. This exemption has been converted since 1 January 2015 at the same level in an allowance. The grants under this allowance remain the employee continues to tax and contributions. This is a year for up to two operating events and should be checked at every operational event for each participating employee. However, in addition, the new law extends the tax-related costs and therefore levers two judgments of the Federal Finance.
The result: In the future, all costs spent by the employer under an operating event to take into account the employee. This rule applies regardless of whether the grants to individual employees are individually attributable, or whether it is a notional share in the cost of the outer frame of the operation event. So that a worker must be included in the cost of premises and decoration in addition to the cost of entertainment, meals or musical performances. To make matters worse, that workers also the costs of an accompanying person shall be counted as contributions in the future.
Total result from the new law change advantages and disadvantages. Compared to the previous allowances scheme in future to fall significantly less taxes because when exceeding the free amount of 110 Euros taxes not to the total amount will be due, but only at the cost to the allowance. Nevertheless, the exemption threshold is exceeded significantly faster in the future, since workers now all costs of the event and the costs must be attributed to a companion.
How it is determined whether the expenditures are within the allowance? The sum of the immediately consumable benefits will be divided equally among the guests. A peculiarity arises when the actual number of participants is very different from the applications. Then futile expenses like food and beverage packages can be eliminated for absent from the sum.
Since this is at an operating event a professionally undertaken event, a reimbursement of travel expenses in connection with the travel expenses is conceivable. Travel expenses remain tax-free. Notwithstanding the change in the law remain the fiscal requirements consist of an operating event. Not the net expenditure, but in principle the gross amounts are applicable to the allowance.
Be careful when selecting guests
If the cost per participant than 110 euros, the excess amount is tax and national insurance contributions. Consequence: The employer must then submit to the flat-rate income tax or settle the issues as additional wages to the monthly salary, these costs by 25%.
Caution should always be exercised when selecting guests for a company party. The event must be open to all employees. Space is limited, identifies the tax authorities only in exceptional cases. The substance may have celebrations for specific departments or sections. However, individual employees must never be favored or disadvantaged. In collaborations with freelancers or business partners the tax office looks out particularly accurately. Your hospitality is unlike employees and their personal accompaniment deductible limited. Companies should create a list of participants that breaks down the status of the guests and noted their presence. So companies can freely celebrate and not risk nasty surprises with the tax authorities.
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