As of 2023, the rules on home office rooms (häusliches Arbeitszimmer) and the Homeoffice-Pauschale (home office flat rate) have been revised. The Bundesfinanzministerium (BMF) has issued a circular addressing details of the new provisions.
Home Office Room (Häusliches Arbeitszimmer)
In principle, a full deduction of costs for a home office room is only possible if the room constitutes the centre of all professional activity. For the sake of simplification, however, an annual flat rate of EUR 1,260 was introduced as of 01/01/2023. It may be claimed as a tax-reducing item under income-related expenses or business expenses without further supporting evidence. Only if the actual annual costs for the home office room exceed the flat rate must the expenses be substantiated in detail.
The annual flat rate applies to each employee exactly once. It therefore cannot be claimed multiple times where several activities are carried out; instead, it must be allocated accordingly. The BMF also clarifies that, in addition to the usual work equipment, costs for professionally occasioned telephone and internet use do not constitute expenses for a home office room. Such costs are therefore not to be included in the EUR 1,260 flat rate but may be claimed separately as income-related expenses or business expenses.
The home office room must continue to be a separate, enclosed room whose furnishings are essentially used exclusively for professional purposes. Mere work corners can only be taken into account under the Homeoffice-Pauschale.
Homeoffice-Pauschale
As of 01/01/2023, the Homeoffice-Pauschale has been expanded and made more generous. Under the new rules, EUR 6 per working day spent at home may now be claimed, for a maximum of 210 days per year (i.e. up to EUR 1,260). Until 31/12/2022, the Homeoffice-Pauschale was capped at EUR 600 per year (120 days at EUR 5 each).
Here too, the BMF has clarified that expenses for telephone and internet may be claimed separately and are not covered by the flat rate. The BMF further clarifies: where, in the case of a dual household arrangement (doppelte Haushaltsführung), costs for the accommodation at the place of employment have already been claimed, the Homeoffice-Pauschale cannot additionally be claimed for the working days spent in the home office there.
The flat rate may be deducted for each day on which the business or professional activity is performed predominantly at home. In addition to the daily flat rate, travel costs generally may not be deducted. There are, however, two exceptions.
Case 1: If, in addition to working from home, the employee also performs an external activity (Auswärtstätigkeit), both the daily flat rate and the travel expenses may be claimed. The daily flat rate is, however, only granted if the activity on that day is performed predominantly at home, i.e. for more than half of the actual daily working time.
Case 2: If no other workplace is permanently available for the professional or business activity, and the activity is carried out at home and at the primary place of work (erste Tätigkeitsstätte) or externally, both the daily flat rate and the commuting or travel costs may be deducted. In such cases, it is not required that the activity be carried out predominantly at home. This case applies, for instance, to teachers.