To make use of tax exemptions, for instance reimbursement of travel costs of EUR 0.19 per km, the employer first has to “label” the allowance/ reimbursement as “work-related costs subject to final levy”. Initially no explicit registration was needed for such “labeling”.

However, the Secretary of State has changed his view on this. The company’s administration should now explicitly reflect the labeling of allowances/reimbursements as “work-related costs subject to final levy”. Otherwise tax exemptions and tax free allowances are not applicable.

In order for the tax free allowances and exemptions to be applicable, the labeling should be recorded in the administration still this year.