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Combine company outing with training
Combine a company outing with training: How to save on taxes!
Would you like to offer your employees an unforgettable experience while also benefiting from tax advantages? Combining a company outing with training makes it possible! However, careful planning and documentation are crucial. Learn how to make the most of the tax framework. For personalised advice, please contact us.
The topic, briefly and concisely
The combination of a company outing and training offers attractive tax advantages, as travel and accommodation costs can partially be deducted as training expenses.
Make optimal use of the €110 allowance per employee by ensuring a clear distinction between company outing and training and documenting the costs transparently.
Pay attention to the equal treatment of all employees and the compliance with current legal regulations to avoid tax disadvantages and ensure a successful company outing with training.
Discover how you can combine an unforgettable company outing with valuable further training while saving on taxes. Find out now!
Combining a company outing with training – this not only sounds like a great way to strengthen team spirit but also offers attractive tax benefits. But how can you optimally organize it so that your company benefits the most? We at GoTuro, your experts for unforgettable corporate events, show you how, through smart planning and careful documentation, you can save taxes while also doing something good for your employees. Our expertise in the areas of Adventure, Cultural, and Leisure Travel enables us to provide you with unique experiences that are both educational and entertaining. Discover now how you can make your next company outing with training a total success!
Basics and Overview
To make the most of the tax advantages, it is important to understand the basics. What exactly counts as a company outing and what as training? A company outing is an event aimed at promoting cohesion and team building. Training, on the other hand, is designed to impart knowledge and skills relevant to professional activity. Combining both elements can be tax attractive, as certain costs can be deducted as business expenses. Clear differentiation and documentation are crucial here. Further information on the tax optimization of company events can be found here.
What counts as a company outing and what as training?
The distinction between a company outing and training is crucial for tax treatment. A company outing primarily serves socializing and team building, while training aims at imparting job-related knowledge. The combination of both elements allows you to claim costs that would not otherwise be deductible. Ensure that the training has a clear relation to the employees' professional activities. We at GoTuro are happy to assist you in the conception of company outings that are both entertaining and educational. Our offerings in party trips and workations can be ideally combined with training elements.
Why the combination is tax attractive
The combination of a company outing and training is attractive from a tax perspective, as it allows you to partially deduct travel and accommodation costs as training expenses. This increases the financial leeway to fully utilize the allowance of 110 Euros per employee. It is important that the training has a clear commercial benefit and that the costs are appropriately documented. By integrating seminars and training into the company outing, you can not only expand your employees' knowledge but also reduce your company's tax burden.
Make optimal use of the 110-euro threshold: Allowance instead of exemption limit
An important aspect of the tax treatment of company outings is the 110-euro threshold. This is an allowance, not an exemption limit. This means that only the amount over 110 euros per employee needs to be taxed. This distinction is crucial and can lead to significant tax savings. Ensure you carefully document all costs associated with the company outing and make optimal use of the allowance. At GoTuro, we help you structure the costs so that you fully utilize the allowance while also creating an unforgettable event for your employees. Further information about the allowance for company events can be found here.
The 110-euro threshold: Allowance vs. Exemption Limit
It is essential to understand the difference between an allowance and an exemption limit. With an allowance, only the costs exceeding 110 euros per employee are taxed. An exemption limit, however, means the entire amount would be taxed as soon as the limit is exceeded. Therefore, the regulation as an allowance is more advantageous for employees and employers. To make optimal use of the allowance, you should carefully plan and document the costs of the company outing and training.
Important Difference: What Does This Mean for Employees and Employers?
The difference between an allowance and an exemption limit has significant implications for the tax burden of employees and employers. Because it is an allowance, both sides benefit from the regulation. Employees only have to tax the part of the costs that exceeds 110 euros, and employers can deduct costs up to this limit as business expenses. Clear documentation and cost breakdown are essential to claim the tax benefits.
Inclusion of Accompanying Persons in the Calculation
When calculating the allowance, the costs for accompanying persons must also be considered. The costs for accompanying persons are allocated to the respective employee, thereby increasing the amount that may need to be taxed. Be sure to itemize the costs for accompanying persons separately and include them in the calculation of the allowance. Transparent cost breakdown is essential here.
Cleverly share travel expenses: How to succeed with mixed events
To fully leverage the tax benefits, it is advisable to organise the company outing as a mixed event. This means combining elements of training with pure enjoyment. The costs for travel and accommodation can then be partially attributed to training, increasing the tax allowance. Clear documentation and separate invoices are essential here. At GoTuro, we assist you in planning and executing such mixed events to secure maximum tax advantages for you. Our expertise in incentive travel enables us to offer you customised solutions that are both educational and motivating.
Mixed Events: The Clever Solution
A mixed event combines elements of a company outing with training activities. This allows for an optimal allocation of travel and accommodation expenses, which makes better use of the tax-free allowance. It is important that the training has a clear business benefit and that costs are documented accordingly. By integrating seminars and training sessions into the company outing, you can not only expand your employees’ knowledge but also reduce your company’s tax burden.
How to Optimally Allocate Travel and Accommodation Costs
The allocation of travel and accommodation costs is a crucial factor in mixed events. A proportional allocation based on time spent (training vs. outing) is common. This means you allocate costs according to the ratio of time spent on training versus leisure activities. Clear documentation and separate invoices are essential to make the allocation understandable.
Separate Invoices for Clear Documentation
To make the cost allocation transparent and understandable, it is advisable to create separate invoices for the different components of the company outing (e.g., training, accommodation, catering). This facilitates documentation and helps avoid misunderstandings with the tax office. Ensure that the invoices contain all relevant information (e.g., date, service, costs, participants).
Tax-deductible seminars: How to benefit from training measures
Not every training program is tax-deductible. It is important that seminars and training sessions have a clear relevance to the employees' professional activities and can demonstrate a business benefit. Language courses, IT training, or team development measures are typical examples of training that may be tax-deductible. At GoTuro, we are happy to advise you on the selection of suitable training measures that meet your employees' needs while also being tax-advantageous. Our expertise in the field of Cultural Travel allows us to offer you cultural experiences that are both educational and inspiring.
Training Measures in Detail
To benefit from tax advantages, it is important to select the right training measures. These should have a clear business benefit and expand the professional skills of employees. Typical examples include language courses, IT training, or team development seminars. Ensure that the training measures are well-documented and the business benefit can be demonstrated.
Which Seminars and Training Sessions are Tax-Deductible?
Generally, seminars and training sessions that impart professional or social skills are tax-deductible. These include, for example, language courses, IT training, team development seminars, or project management training. It is important that the training has a clear connection to the employees' professional activities and can demonstrate a business benefit.
Proof of Business Benefit Required
To ensure the tax-deductibility of training measures, proof of business benefit is required. This can be provided, for example, through a description of the learning content, a participant list, or an employer's confirmation. Make sure the business benefit is clearly and comprehensibly documented.
Avoid trouble: How to achieve correct documentation for the tax office
Careful documentation is essential to avoid issues with the tax office. Ensure you provide separate invoices for corporate excursions and training sessions, create participant lists, and prepare a detailed breakdown of costs. The content of the training should also be recorded to demonstrate the business benefits. At GoTuro, we assist you in preparing the necessary documentation to ensure smooth dealings with the tax office. Our expertise in adventure travel allows us to offer you unforgettable experiences that are both educational and tax-beneficial.
Documentation and Evidence Requirements
A comprehensive documentation is crucial to claim tax benefits. This includes separate invoices for excursions and training sessions, participant lists, and a detailed breakdown of costs. The content of the training should also be recorded to demonstrate the business benefits. Careful documentation helps avoid misunderstandings with the tax office and maximises your tax benefits.
Key Points to Avoid Issues with the Tax Office
To avoid issues with the tax office, make sure you pay attention to the following points:
Separate Invoices: Provide separate invoices for the corporate excursion and the training.
Participant Lists: Create participant lists to verify employee attendance.
Detailed Cost Breakdown: Prepare a detailed cost breakdown to present all expenses transparently.
Recording Training Content: Record the content of the training sessions to demonstrate their business benefits.
Separate Invoices for Excursion and Training
Submitting separate invoices for the corporate excursion and training is a crucial step to present costs transparently and claim tax benefits. Ensure the invoices include all relevant information (e.g. date, service, costs, participants).
Participant Lists and Detailed Cost Breakdown
Creating participant lists and a detailed cost breakdown is essential to verify employee participation and present all expenses transparently. The participant lists should include the names of all participants and their roles within the company. The cost breakdown should itemise all expenses related to the corporate excursion and training in detail.
Recording Training Content
Recording the content of the training sessions is important to demonstrate the business benefits of the training. The record should include the topics covered, the content delivered, and the names of the speakers. Ensure the record is signed by a responsible person.
Ensuring Equal Treatment: Who is allowed to join the company outing?
An important aspect of planning a company outing is equal treatment of all employees. In principle, the company outing should be open to all employees. Exceptions are possible if the outing is limited to certain departments or teams, as long as this does not lead to the favouring of individual groups. At GoTuro, we always ensure that our corporate events adhere to the principles of equal treatment, providing you with a legally compliant and fair event. Our expertise in Leisure Travel enables us to offer you relaxing and harmonious experiences that enhance team spirit and motivate employees.
Participation Conditions and Equal Treatment
To avoid jeopardising tax benefits, it is important to consider the participation conditions and the principle of equal treatment. The company outing should be open to all employees or at least clearly defined departments. Favouring individual groups is not permitted. Ensure that the participation conditions are transparent and understandable.
Who can participate and what happens if not everyone is invited?
As a rule, the company outing should be open to all employees. If not all employees are invited, this can lead to tax disadvantages. Exceptions are possible if the outing is limited to certain departments or teams, provided that this does not lead to favouring individual groups. Ensure that the participation conditions are transparent and understandable.
Openness for All Employees (or Clearly Defined Departments)
Openness for all employees (or clearly defined departments) is an important aspect when planning a company outing. Ensure that participation conditions are transparent and understandable. Favouring individual groups is not permitted.
Avoiding the Favouring of Individual Groups
To avoid tax disadvantages, it is important to prevent the favouring of individual groups. The company outing should be open to all employees or at least clearly defined departments. Favouring individual groups is not permitted.
Successful Implementation: Practical Examples for Company Outings with Training
Many companies have already successfully combined company outings with training and have benefited from the tax advantages. Examples of this include company tours with subsequent team-building activities or language courses as part of a weekend getaway. It is important that the cost allocation is transparent and comprehensible. We at GoTuro are happy to present you with further practical examples and support you in developing an individual concept for your company outing with training. Our expertise in the field of Cultural and Leisure Travel allows us to offer you unique experiences that are both educational and entertaining.
Practical Examples and Case Studies
To make implementation easier for you, we present some practical examples and case studies of companies that have already successfully combined company outings with training. These examples show how cost allocation can succeed and what best practices exist.
How Other Companies Have Successfully Implemented Company Outings with Training
One example is a company that combined a company tour with subsequent team-building activity. The costs for the company tour were deducted as training expenses, while the costs for the team-building activity were claimed as business expenses. Another example is a company that offered language courses as part of a weekend getaway. The costs for the language courses were deducted as training expenses, while the costs for accommodation and catering were proportionately claimed as business expenses.
Examples of Successful Cost Allocation
An example of successful cost allocation is the proportional allocation of travel and accommodation costs by time share (training vs. outing). Another example is the separate listing of costs for accompanying persons. Ensure that the cost allocation is transparent and comprehensible.
Lessons Learned and Best Practices
Some lessons learned and best practices can be derived from the practical examples. These include careful planning and documentation, transparent cost allocation, and adherence to the principles of equal treatment. Ensure that you consider these lessons learned and best practices when planning your company outing with training.
Observe the Growth Opportunities Act: Current Case Law and Legislative Changes
The tax treatment of company outings is subject to constant changes by court rulings and legislation. Therefore, it is important to stay informed about the current rulings of the Federal Fiscal Court (BFH) and the latest legislative changes. Even though the attempt to increase the tax-free allowance under the Growth Opportunities Act has failed, you should keep an eye on developments. We at GoTuro provide regular updates on the latest changes and support you in implementing new regulations. Our expertise in Adventure, Cultural, and Leisure Travel enables us to offer you always up-to-date and legally secure solutions.
Current Rulings and Legislative Changes
The tax treatment of company outings is subject to constant changes by court rulings and legislation. Therefore, it is important to stay informed about the current rulings of the Federal Fiscal Court (BFH) and the latest legislative changes.
What the Federal Fiscal Court and the Growth Opportunities Act Mean for Your Planning
The rulings of the Federal Fiscal Court (BFH) and the Growth Opportunities Act can have significant impacts on your planning. Be sure to consider current rulings and legislative changes to avoid tax disadvantages.
BSG Ruling (23.04.24) on Social Security Obligation
The BSG ruling of 23.04.24 on social security obligations is an important aspect of planning company outings. Ensure you meet the conditions for social security exemptions, especially timely registration of flat-rate taxation.
Failure to Increase the Allowance to 150 Euros
Even though the attempt to increase the allowance to 150 euros under the Growth Opportunities Act has failed, you should keep an eye on developments. It is possible that the allowance will be increased in the future.
Optimal tax planning: Checklist for your next company outing
More useful links
On the page of the Deutschen Wirtschaftsbriefs, you can find further information on tax optimisation for company events.
Haufe provides detailed information on the tax allowance for company events.
FAQ
What exactly does one mean by a team outing with training?
A team outing with training combines team-building activities with job-related courses or seminars. The aim is to strengthen unity while simultaneously enhancing employee skills.
What are the tax benefits of combining a team outing with training?
By combining them, travel and accommodation costs can partially be deducted as training expenses, allowing the tax-free allowance of 110 euros per employee to be optimally utilized.
How can I make the best use of the 110-euro limit?
Ensure the training has a clear professional benefit and that the costs are appropriately documented. It is advisable to have a proportional allocation of costs (training vs. outing).
What types of seminars are tax-deductible?
Tax-deductible seminars include those that provide professional or social skills, such as language courses, IT trainings, or team development measures. The business benefit must be demonstrated.
How important is documentation for the tax office?
Meticulous documentation is crucial. Provide separate invoices for the team outing and the training, create participant lists, and make a detailed cost breakdown.
What should I consider regarding the participation of accompanying persons?
The costs for accompanying persons are attributed to the respective employees, which may increase the amount that could potentially be taxed. Specify these costs separately.
Are all employees allowed to participate in the team outing?
Generally, the team outing should be open to all employees. Exceptions are possible if the outing is restricted to certain departments or teams, as long as it doesn't favor particular groups.
What should be considered in planning regarding recent legislative changes?
Inform yourself about the current case law of the Federal Fiscal Court (BFH) and recent legislative changes, as the tax treatment of team outings is subject to continuous modifications.
