Going forward, maintenance expenses are only deductible if paid by bank transfer to the recipient.
What is changing
A deduction of maintenance expenses in the case of monetary gifts will in future only be recognised when paid by bank transfer. At present, other payment methods are also permitted (e.g. taking cash along on family visits).
Relief regarding the supporting evidence may be granted under general principles of equity where special circumstances apply (for example in the event of war) in the country of residence of the supported person, based on a corresponding administrative regulation.
Entry into force
This applies from the 2025 assessment period onwards.
Frequently asked questions
Frequently asked questions
How must maintenance payments be paid from 2025 onwards to be tax-deductible?
From assessment period 2025, cash contributions are only recognized as maintenance payments for tax purposes if they are made by bank transfer to the recipient's account. Other payment methods, such as cash handovers, result in the loss of the deduction.
Are cash payments still tax-deductible as maintenance payments?
No. From the 2025 assessment period onward, cash payments are no longer deductible as maintenance expenses – even if the money is handed over in person during family visits. A bank transfer to the recipient is now strictly required.
Are there exceptions to the requirement of bank transfer for maintenance payments?
Yes, relief may be granted on general equitable grounds if special circumstances exist in the country of residence of the supported person, such as in the case of war. This requires a corresponding administrative ruling by the tax authorities.
From when does the bank transfer requirement apply to maintenance payments?
The rule applies from the 2025 assessment period onward. For earlier periods, cash payments may still be recognized under the previous conditions.
What is the consequence of paying maintenance in cash from 2025 onwards?
If maintenance is paid in cash from 2025 onwards, it is no longer deductible for tax purposes as an extraordinary expense (außergewöhnliche Belastung). The taxpayer thus loses the tax benefit, even if the payment can be verifiably proven.