Tax Tip: If the employer pays the study

The operational capability of an employee increased by a part-time study that pays the employer, both can benefit from the tax.

B ILDs continued to employees of a company, also benefits the operation – such as a master’s program that is completed in addition to the work. The tax authorities have recently re-commented the rules under which the Treasury recognizes the acquisition of tuition fees by the employer without the employee must pay additional taxes and employer’s tax-reducing deduction as business expenses loses (BMF letter, 13. 4. 2012, IV C 5 – S 2332/07/0001).

Tax Tip: Tax Savings with the apartment

Prerequisite fiscal recognition is a predominantly self-operating interest of the employer. That is when the operational capability of the worker increased by studying – so it can, for example, fulfill demanding tasks. The pleasant tax consequences: The employer may make the cost of training as business expenses against tax, and the employee must this “subsidy” is not taxed as a cash benefit. Another positive consequence: social security contributions then also not incurred. This is true regardless of who is against the teaching institution required to pay the tuition fees. If the employee is obliged, however, note a cliff: Here, the employer must commit in writing to the employee to reimburse them. Otherwise, the employee runs the risk that the tax authorities subordinate to him a taxable benefit.

Tax advantages apply to study in the family business

The employer may grant the employee tuition fees as a loan. Neither of the award still in repayment of such loans the Treasury senses an advantage for the employee – provided that the agreements on interest rates, cancellation, and repayment have been negotiated at the arm. Remains of the employees receive the employee after the training, the subsequent forgiveness of the loan can remain profitable tax left out yourself.

The tax advantages for both sides also apply to a study that completes the daughter or the son in the family business in the course of their work. Provided, of course, the conditions are as agreed common among third parties and effectively implemented.

Even if the Treasury of a non-cash benefit runs out, remains a backdoor: The employee may make the cost of part-time studies in his income tax return as related expenses and thus “repeat” the income tax on the benefit derived by the tax office.