Germany: Bundestag sets flat rate for work from home office

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Those working from home during the coronavirus crisis will find it easier to report their expenses on their tax return. The Bundestag has decided on a flat home office rate of no more than 600 euros per year.

The rate should apply to tax returns for 2020 and 2021. For the decree to take effect, the Federal Council still has to give its approval this Friday, December 18th. An amount not exceeding EUR 600 per year is deducted from taxable income, reducing the amount of taxes payable. However, the flat rate for the home office is just one cost item for which all taxpayers are charged a flat rate of € 1,000. Only those who spend more than € 1,000 will benefit from this measure.

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