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company outing costs per employee 2025
Company outing costs per employee 2025: How to save on taxes!
An unforgettable company outing doesn't have to be expensive! Do you know the tax regulations for 2025? We show you how to make optimal use of the tax allowance and avoid unexpected cost traps. Plan your outing now and find out about the details. More information can be found in our contact section.
The topic, briefly and concisely
The allowance of 110 euros per employee for a maximum of two company outings annually is crucial for tax optimisation. A precise cost calculation including VAT is essential.
The correct cost allocation, including taking into account companions and 'no-shows', helps to avoid unexpected tax payments. Careful budget planning is essential here.
A comprehensive documentation with a detailed list of participants and a breakdown of costs is essential for every tax audit. Using software solutions can significantly increase the efficiency of planning and documentation, and reduce the compliance risk.
Plan your company outing 2025 and keep costs under control! Learn all about the allowance, the correct calculation, and how you can save taxes.
An office outing is an excellent opportunity to boost employee motivation and strengthen team spirit. However, especially when planning for the year 2025, it's crucial to keep an eye on the tax regulations. As a company, GoTuro, specialising in unforgettable travel experiences, we understand the importance of not only creating an attractive programme but also keeping the cost per employee within the legal limits. This guide will show you how to optimally plan your office outing costs 2025 and save on taxes in the process.
Overview of tax regulations for office outings in 2025
The tax regulations for company events, which include office outings, are specified in the Income Tax Act. A key aspect is the tax-free allowance of 110 euros per employee and event. This amount covers all costs incurred by the employer, including VAT. It is important to note that this tax-free allowance only applies to a maximum of two events per year. Therefore, if you plan more than two office outings, wage taxes will apply to the additional events. The IHK Karlsruhe offers detailed information on this.
Importance of correct cost calculation and documentation
An accurate cost calculation is essential to make the most of the tax-free allowance and avoid unexpected tax payments. All relevant costs must be considered, from travel to catering and any potential activities on-site. Documentation also plays a crucial role. A meticulously maintained participant list is important not only for internal organisation but also for the tax office. Missing evidence can lead to issues during a tax audit. Lexware provides useful tips on the tax deduction of company celebrations, which also apply to office outings.
Make the most of the 110 Euro allowance: Here's how
The allowance of 110 euros per employee is a key factor when planning your company outings 2025. It is crucial to understand which costs are covered by this amount and how to make the most of it. At GoTuro, we assist you in designing attractive and cost-effective programmes that comply with the tax regulations.
Detailed Explanation of the Allowance: What is Included?
The allowance of 110 euros covers all employer expenses related to the company outing. This not only includes the direct costs for food and drinks but also indirect costs such as venue hire, music, or any gifts. It is important to understand that this amount includes VAT. Kanzlei Heimeshoff & Riese provides valuable insights on this matter.
Value Added Tax (VAT) and its Consideration
The VAT is an essential component of the cost calculation. The allowance of 110 euros is inclusive of VAT. This means that in your planning, you must ensure that the total costs including VAT do not exceed this amount. Otherwise, taxes will be charged on the excess amount.
Included Costs: Food, Beverages, Tickets, Gifts, Music, Venue Rental, Transport
For example, the allowance covers costs such as food and drinks during the outing, tickets for cultural events or leisure activities, small gifts for the employees, fees for a band or DJ, as well as rental fees for venues, if needed. Transport costs to and from the venue are also included in the 110 euros. It is advisable to calculate all these costs in advance to keep track. A detailed breakdown helps to optimise the company outing.
Excluded Costs: Tax-Free Travel Expenses (Under Certain Conditions), Internal Work Costs
However, there are also costs that do not need to be included in the allowance of 110 euros. These include, for example, tax-free travel expenses if the company outing takes place outside the employee's primary place of work and the trip is organised by the employee themselves. Internal work costs incurred due to planning and organising the outing, for example, do not need to be accounted for. Stotax experts explain these details comprehensively.
The Two-Event Rule: What Happens with More Than Two Events?
An important aspect when planning company outings is the so-called two-event rule. This stipulates that the allowance of 110 euros applies to a maximum of two events per employee per calendar year. If more than two events occur, the costs for all additional events are subject to income tax, even if the costs per employee are below 110 euros. It is therefore advisable to keep track of the number of events and prioritise if necessary. Incentive trips can be an attractive alternative.
Employer's Choice of Taxable Event
Should you plan more than two company events, you, as an employer, have the option to decide which events are to be taxed. This gives you the flexibility to tax the events with the lowest cost per employee and thus minimise the overall tax burden. Careful planning and documentation are essential here.
Handling Last-Minute Cancellations and Their Impact on Per Head Costs
Last-minute cancellations by employees can significantly affect the cost calculation. Since the allowance applies per employee actually participating, the costs must be redistributed among the remaining participants if an employee cancels at the last minute. This may result in the allowance being exceeded and taxes becoming due. It is therefore advisable to plan a buffer in advance and encourage employees to register early and commit.
Accurately calculate costs per capita: How to avoid tax pitfalls
The correct calculation of costs per employee is crucial to adhere to the allowance of 110 euros and avoid unexpected tax payments. We at GoTuro assist you in considering all relevant factors and creating a transparent cost breakdown.
Basic principles of cost allocation: Total costs divided by actual participants
The basic principle of cost allocation is simple: The total costs of the company outing are divided by the number of employees who actually attend. It is important to consider all costs incurred by the employer, including VAT. Consilia GmbH offers a useful information sheet on this.
Consideration of accompanying persons: Allocation of costs to the respective employee
If employees bring accompanying persons to the company outing, the costs for these persons must be attributed to the respective employee. This means that the total costs for the employee and their accompanying person must remain under the allowance of 110 euros to be tax-free. It is therefore advisable to inform employees of this regulation early on and, if necessary, to require a contribution for accompanying persons.
Handling 'no-shows': Distribution of costs for registered but absent participants
A common issue in planning company outings is 'no-shows', i.e., employees who register but do not attend the outing. In this case, the costs for these employees must be redistributed to those who actually participate. This can result in exceeding the allowance and incurring taxes. Hence, it is advisable to plan for a buffer and encourage employees to confirm their attendance early on.
Examples to illustrate cost calculation
To illustrate cost calculation, here are a few examples: Assume a company outing costs 5,000 euros and 50 employees participate. In this case, the cost per employee is 100 euros, which is within the allowance. However, if 10 employees cancel at short notice, the costs must be redistributed among the remaining 40 employees, resulting in a cost of 125 euros per employee. In this situation, taxes would apply to the amount exceeding the allowance. Therefore, it is important to consider all eventualities in planning. Our information on the company outing threshold for 2025 provides further details.
Minimising Tax Burden: Options When Exceeding the Allowance
What happens if the allowance of 110 euros is exceeded? No worries! There are various ways to minimise the tax burden. We at GoTuro are happy to advise you on which option is best suited for your company.
Options for Exceeding: Individual Payroll Taxation vs Lump-Sum Taxation
There are fundamentally two ways to deal with exceeding the allowance: individual payroll taxation and lump-sum taxation. With individual payroll taxation, the excess amount is added to the employee's individual salary and taxed accordingly. In lump-sum taxation, the employer assumes the tax burden and taxes the excess amount at a flat rate of 25 percent.
The 25% Flat Rate Tax: Advantages and Disadvantages
The 25% flat rate tax has the advantage of being simple and straightforward. The employer only needs to tax the excess amount at a flat rate and remit it to the tax office. The disadvantage is that the flat rate tax is generally higher than individual payroll tax, especially for employees with low income. The Handwerksblatt information provides further details on this.
Solidarity Surcharge and Church Tax with Lump-Sum Taxation
With lump-sum taxation, in addition to the 25% flat rate tax, a solidarity surcharge and, if applicable, church tax are also incurred. The employer must also bear these costs. It is therefore important to consider these additional costs when deciding on lump-sum taxation.
Exemption from Social Security with Lump-Sum Taxation
An advantage of lump-sum taxation is that the excess amount is not subject to social security contributions. This means that neither the employer nor the employee has to pay social security contributions on the excess amount. This can be a significant advantage, especially for larger exceedances of the allowance.
Ways to Avoid Exceeding: Budget Planning and Employee Involvement
To avoid exceeding the allowance from the outset, careful budget planning is essential. Plan all costs precisely in advance and include a buffer. Another option is employee involvement. For instance, give your employees the opportunity to contribute to the cost of the company outing to avoid exceeding the allowance. Our information on the importance of company outings can assist you in your planning.
Manage travel expenses and gifts effectively: How to save even more
In addition to the tax-free allowance of 110 euros, there are further ways to optimise the costs of your company outing. At GoTuro, we show you how to make travel expenses and gifts tax-efficient.
Travel costs for company outings: Tax-free reimbursement vs. inclusion in the tax-free allowance
The travel costs for the company outing can either be reimbursed tax-free or included in the tax-free allowance of 110 euros. Which option is best for you depends on various factors, particularly the location of the outing and the organisation of the trip.
Conditions for tax-free reimbursement of travel costs (event outside the primary workplace, organised by the employee)
If the company outing takes place outside the employee's primary workplace and the trip is organised by the employee themselves, the travel expenses can be reimbursed tax-free. In this instance, the travel costs do not need to be included in the tax-free allowance of 110 euros. This can be a significant advantage, especially for longer journeys.
Gifts in the context of a company outing: Exemption limit vs. tax-free allowance
Gifts given in the context of a company outing can also be arranged tax-efficiently. However, it is important to distinguish between the exemption limit and the tax-free allowance. The Stotax experts explain the differences in detail.
The 60-euro exemption limit for gifts: What to consider?
For gifts, there is an exemption limit of 60 euros per employee per year. This means gifts up to a value of 60 euros are tax and social security free. However, it is important to note that this is an exemption limit, not a tax-free allowance. This means the entire amount becomes taxable if the exemption limit is exceeded.
Combining gifts and the 110-euro tax-free allowance
Gifts can generally be combined with the tax-free allowance of 110 euros. This means you can give your employees both a gift worth up to 60 euros and a company outing worth up to 110 euros tax-free. It is important, however, to consider the exemption limit for gifts and the tax-free allowance for company outings separately and not to mix them.
Maintain complete documentation: How to pass any tax audit
Comprehensive documentation is crucial to ensure compliance during a tax audit. At GoTuro, we show you which documents you need and how to store them correctly.
The Importance of a Detailed Participant List
A detailed participant list is the most important document for proving attendance at the company outing. It serves as the basis for cost calculation and for proving that the tax-free allowance of 110 euros per employee has been complied with. The Lexware information emphasises the importance of such a list.
Contents of the Participant List: Names, Date, Signature
The participant list should contain the following information: the employee's name, the date of the company outing, and the employee's signature. The signature serves as evidence that the employee actually attended the outing. It is advisable to have the participant list signed by employees on the day of the outing.
Retention Obligations for Tax Documents
Certain retention obligations apply to tax documents. Generally, documents must be kept for ten years. This also applies to the documentation of the company outing, including the participant list, the cost statement, and all relevant invoices. It is advisable to store the documents in a secure location and to digitise them if necessary.
Risks of Missing or Inadequate Documentation
Missing or inadequate documentation can lead to significant problems during a tax audit. In the worst-case scenario, the tax office may deny the tax exemption status of the company outing and demand additional tax payments. It is therefore essential to document and store all relevant documents carefully. Our information on the voluntary nature of company outings can assist you in planning.
Handling special cases: How to correctly deal with specific situations
When planning company outings, there can be special cases requiring particular attention. At GoTuro, we show you how to handle these situations correctly and avoid tax pitfalls.
Company outings for former employees, trainees, and part-time staff
Former employees, trainees, and part-time staff can generally participate in company outings. The same tax rules apply to them as they do to full-time employees. This means the tax-free allowance of 110 euros per person also applies to them. However, it is important to consider the different needs and interests of the various employee groups during planning.
Inviting business partners and external participants
Inviting business partners and external participants to company outings is generally possible, but the costs for these attendees need separate consideration. Costs for business partners are usually deductible as business expenses, but not within the tax-free allowance of 110 euros per employee. Therefore, it is advisable to record and document the costs for business partners separately.
Mixed-use events: Differentiation between business and private components
For mixed-use events that include both business and private elements, a clear distinction between the business and private parts is required. Only the business portion can be considered under the tax-free allowance of 110 euros. Therefore, it is essential to record and document the costs for the various elements of the event separately. Our information on multi-day company outings provides further details.
Optimising Planning: How to Organise an Efficient Company Outing
Careful planning is essential for a successful and cost-effective corporate outing. At GoTuro, we provide valuable tips and suggestions on how to make the most of your excursion.
Early Budget Planning and Cost Estimation
Start your budgeting and cost estimation early. Create a detailed breakdown of all anticipated expenses, including travel, catering, activities, and potential gifts. Include a buffer to cover unforeseen costs. The information from Concur offers valuable insights on this.
Involving Employees in the Planning
Involve your employees in planning the corporate outing. Ask about their preferences and interests and take these into account when designing the program. This increases acceptance and motivation among staff and contributes to a positive overall experience.
Utilisation of Software Solutions for Cost Control and Documentation
Make use of software solutions for cost control and documentation. There are various programs that assist you in recording and managing expenses and provide you with an organised cost overview. This facilitates cost calculation and adherence to the 110 Euro tax-free allowance.
Consideration of Compliance Aspects
Ensure compliance with all relevant aspects in planning the corporate outing. Make sure all activities are in line with applicable laws and regulations and that no conflicts of interest arise. This is particularly important when inviting business partners and external participants.
Key Benefits of [Topic]
Here are some of the key benefits you'll gain:
Benefit 1: Tax savings through optimal use of the tax-free allowance
Benefit 2: Increased employee motivation and team cohesion
Benefit 3: Legal certainty through comprehensive documentation
Conclusion: Plan company outings 2025 cleverly and save taxes
More useful links
Die IHK Karlsruhe provides detailed information on the tax treatment of company events.
Die Stotax experts thoroughly explain the details regarding tax-free travel expenses related to company outings.
Die Consilia GmbH offers a helpful leaflet on cost allocation for company outings.
Das Handwerksblatt informs about the tax aspects of company parties and outings.
Die Lexware information emphasizes the importance of a detailed attendee list to verify participation in company outings.
Die Informationen von Concur offer valuable tips for early budgeting and cost estimation for company events.
FAQ
What is the tax-free allowance for company outings per employee in 2025?
The allowance for company outings is 110 euros per employee, including VAT. This amount applies to a maximum of two events per calendar year.
What happens if the costs per employee exceed the allowance of 110 euros?
If the costs exceed the allowance, the employer can either individually tax the excess amount or pay a flat tax of 25% plus solidarity surcharge and church tax.
What costs are included in the allowance of 110 euros?
The allowance covers all costs incurred by the employer in connection with the company outing, including food, drinks, venue hire, music, gifts, and transport.
How are companions considered in the cost calculation?
Costs for companions are attributed to the respective employee. The total costs for the employee and their companion must not exceed the allowance of 110 euros.
What should be considered in the event of short-notice cancellations by employees?
Short-notice cancellations can increase the cost per head. The costs for 'no-shows' must be distributed among the employees who actually attend, which can result in the allowance being exceeded.
How many company outings per year can be tax-supported?
The allowance of 110 euros applies only to a maximum of two company events per employee and calendar year. Further events are subject to income tax.
What documentation is required for the company outing?
A detailed participant list with names, date, and signature is essential. In addition, all invoices and a cost breakdown should be carefully retained.
Can travel expenses be reimbursed tax-free?
If the company outing takes place outside the employee's first place of work and the travel is organised by the employee themselves, the travel expenses can be reimbursed tax-free and do not need to be included in the allowance.
