SAt the beginning of this year, the job ticket is tax-free. This tax exemption covers both subsidies (cash wage) from the employer to the tickets purchased by the employee for the journey to work by public transport as well as tickets that the employer provides free of charge or at a reduced price (benefits in kind).
The Federal Ministry of Finance explains in a letter dated 15 August 2019 which benefits the employer can provide tax-free to his employee. Fare passes in the form of single tickets or multi-trip tickets, as well as season tickets (for example monthly tickets, annual tickets or the BahnCard 100) are eligible for this. Freifahrberechtigungen or discount cards (for example, the Bahncard 25).
Professional journeys can be made on public transport by regular service (such as the ICE, IC, EC, the French TGV or by long-distance bus service with fixed stops) and by public transport (urban, suburban or regional).
The use of public transport is also favored for private trips. Private journeys in long-distance passenger traffic do not jeopardize the tax benefit, provided that the professional journeys cover the acquisition costs of the driving entitlement (eg Bahncard 100).
One downside, however, is in connection with the tax exemption of the job ticket: The tax-free subsidies reduce the cost of employment, which can make the employee to work in his income tax return tax deductible (the so-called distance allowance). In addition, benefits are tax-free only if they are paid in addition to the wages actually owed. A salary conversion is therefore not covered by this tax concession.
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