For certain freelance activities, the tax authorities permit a flat-rate deduction of business expenses (H 18.2 EStH). The allowance can be deducted without providing supporting documents.
A standard business expense allowance is deductible for the following freelance activities:
- full-time writing and journalistic activities
- secondary scientific, artistic and writing activities
- secondary teaching and examining activities
- self-employed midwives and childminders.
Amount of the standard business expense allowance for the 2023 assessment period
As of the 2023 assessment period, the standard business expense allowance has been increased for some of these activities (BMF letter dated 06.04.2023). The following values therefore apply for 2023:
- for full-time self-employed writing or journalistic activities, a deduction of up to 30% of business income is possible, but capped at EUR 3,600 per year (until 2022: EUR 2,455)
- for self-employed scientific, artistic, writing, teaching or examining secondary activities, a deduction of up to 25% of business income is possible, but capped at EUR 900 per year (until 2022: EUR 614)
- for self-employed midwives, a deduction of up to 25% of business income is possible, but capped at EUR 1,535 per year
- for self-employed childminders caring for a child on a full-time basis (40 hours/week), EUR 400 per month and per child may be claimed (as of April 2024).
Note: Instead of the flat rates, higher actual business expenses may be claimed if supported by receipts. It should also be noted that no input VAT deduction is possible for business expenses claimed on a flat-rate basis.
Frequently asked questions
Frequently asked questions
Which freelance activities qualify for the lump-sum business expense deduction?
The tax authorities allow a lump-sum business expense deduction (H 18.2 EStH) for four groups of activities: full-time writing and journalistic work, secondary scientific, artistic and writing activities, part-time teaching and examining activities, as well as self-employed midwives and childminders. The lump sum can be claimed without supporting receipts.
What is the lump-sum business expense allowance for full-time writers and journalists as of 2023?
Starting with the 2023 assessment period, full-time self-employed writers and journalists may deduct a flat 30% of their business income as business expenses, capped at EUR 3,600 per year. Until 2022, the cap was EUR 2,455. The basis is the BMF circular dated 06.04.2023.
What lump-sum deduction applies in 2023 for secondary scientific, artistic, or teaching activities?
For self-employed secondary activities of a scientific, artistic, literary, teaching, or examining nature, the lump-sum business expense deduction amounts to up to 25% of operating income from 2023 onwards, capped at EUR 900 per year. Previously, the maximum was EUR 614 per year.
How is the lump-sum business expense deduction calculated for midwives and childminders?
Self-employed midwives may deduct a flat rate of up to 25% of their business income as business expenses, capped at EUR 1,535 per year. Self-employed childminders providing full-time care (40 hours/week) may claim EUR 400 per month per child (as of April 2024).
Can actual expenses be claimed instead of the flat rate?
Yes, higher actual business expenses may be claimed instead of the flat rate, provided they are supported by receipts. Please note, however, that no input VAT deduction is available for business expenses claimed on a flat-rate basis.