Reimbursement of expenses: This is what companies should pay attention to

There are many special cases and pitfalls when reimbursing expenses to employees: expenses abroad, international company events, small amounts and much more. In our white paper we have listed the special cases for you and give you practical tips for legally compliant processing in your accounting department. This white paper is only available in German.

Reimbursement of expenses: This is what companies should pay attention to

Lunch at a customer meeting, the cost of a new first aid kit or the cable for a projector - employees can have a number of costs reimbursed by their employer as expenses. But for companies to be able to claim the expenses for tax purposes, certain conditions must be met, because there are pitfalls lurking especially in the case of expenses abroad and on business trips.

Not every expense that an employee incurs during working hours is legally considered an expense that must be reimbursed by the company free of tax and contributions (Section 3 No. 50 EstG). The expenses must be incurred for business purposes or at least be necessary and the employee must have had no or only a minor interest in the purchase. For the sake of completeness, it should also be mentioned that ownership of the product is transferred to the employer upon purchase and that the employee may not take the product into his or her private possession. After all, the employee is not supposed to receive a gift, but only to be reimbursed for expenses incurred.

So if an employee spends the cost of a special projector cable because he urgently needs it for a presentation, and it remains in the company, he can claim the cost as an expense. It was a necessary expense, not incurred out of personal interest. The situation is even clearer in the case of a replacement purchase of a first aid kit: The expense was necessary for business purposes and is therefore to be reimbursed tax-free.

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