Law & Numbers - News Tax

No Reduction of Internal Entertainment Expenses

07.10.2008 (Germany)

No flat deduction (currently 30 %) in case of internal entertainment expenses

On June 19, 2008 the Federal Tax Court (Bundesfinanzhof) judged, that entertainment expenses (e.g. food, beverages) paid by an employee on the occassion of internal invitations are not subject to the flat limitation of currently 70 %.

In case of employees with variable income parts (e.g. bonus) such costs might be fully tax deductible as job-related expenses.

For further information contact Björn Christian Gerow directly at +49-211-17257-15.

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