How is the assumption of costs for public transport tickets tax-favored from July 1st?

June 2021

From July 1st, 2021, employers can provide their employees with a weekly, monthly or annual pass or reimburse the corresponding costs tax-free. There are also no employer contributions to the family burden compensation fund and no municipal tax. However, the transport and assumption of the costs are taxable if they are paid instead of the wages previously paid or a normal wage increase.

The Ministry of Finance has now published its legal opinion on certain questions on its website in the form of frequently asked questions and answers. Here is a summary of some of the key points:

  • The card must be valid at least at the place of residence or work.
  • In the case of existing cards, the discount only applies from the renewal of the card.
  • The purchased card can also be transferable. However, if additional costs are incurred, only the costs of the non-transferable card are tax-free.
  • A subsidy / contribution from the employer can also be paid monthly with the salary payment.
  • If an annual ticket is still valid after the end of the employment relationship and costs have been paid by the employer for a period of validity after the termination, this cost reimbursement is proportionally taxable.
  • The prerequisite for the benefit is that the employer takes a copy of the card or the invoice from the transport company to the payroll account.
  • If the employee is provided with a weekly, monthly or annual pass, a tax-free tax application can only be made for the route that is not included.
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Stand: 27. May 2021

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