17 Mar How to withdraw money from a company tax-free?
Withdrawing money from a company tax-free is possible in several ways. However, many entrepreneurs do not take advantage of the various tax benefits provided by the state simply because they are not aware of them. In fact, there are quite a few expenses that are tax-free for companies, and the entrepreneur can confidently compensate these expenses for themselves as a board member and/or employee as an individual. Here are all the possible ways.
Personal car allowance
The company can compensate tax-free up to 335€ per month for work-related trips and personal car use, but only based on a travel log.
Home office expenses
All expenses made to the office can be 100% attributed as company expenses if you actually do the company’s work at home and there is a separate room used as an office. If you’re unsure about the proportion, then a common approach is up to 50/50. You can compensate for utility bills as well as part of the apartment rent if it is paid, and all the necessary supplies for the office. Home office expenses are compensated based on a board decision and the expense document.
Trainings
Work-related trainings are tax-free provided that there is a direct need for the training in the company and/or it is necessary for the employee to perform their job.
Travel allowances and other business trip expenses
Allowances for business trips are tax-free, and other related expenses like accommodation and plane tickets are also covered by the company. For the first 15 days, 50 euros per day can be paid, after that 32 euros per day.
Health benefits expenses
Expenses for health promotion are tax-free and compensated up to 100€ per employee per quarter.
Hospitality expenses
Hospitality expense is the expenditure made by the company related to hosting guests or partners, including catering, accommodation, transport, or entertainment. However, tax-free is limited to up to 2% of the social tax taxed payments +32 euros per month.
Gifting/promotional gifts
The tax-free limit for gifts made for advertising purposes is 10 euros without VAT.
These are just some of the ways to withdraw money from a company tax-free. Don’t miss out on the opportunities that the law offers you!