How can professional development expenses be deducted?
Professional development expenses fall into the category of procurement costs and can be reported in the corresponding section of the tax return.
Procurement costs are expenses directly incurred to acquire, secure and retain revenues.
Each employee automatically benefits from an annual flat rate deduction of € 540 for procurement costs. If the actual costs of procurement exceed this amount, the taxpayer may claim the actual amount of his expenses.
If both spouses/partners who are collectively taxable receive income from a salaried occupation, each benefit from the minimum of € 540. If all actual procurement costs exceed the flat rate, the employee may deduct them on request.
Are all training courses eligible for a tax reduction?
No, continuing training must be directly related to the employee’s occupation and allow the employee to update his/her professional knowledge to better meet the requirements of the profession or to progress in the profession. In addition, the costs of further training must be covered by the employee.
Training expenses incurred to acquire knowledge for a change of profession or for the future practice of a profession cannot be deducted for tax purposes.
It is recommended that employees contact their tax office before starting any continuing training to see if the proposed training is eligible for a tax reduction.
What expenses can be declared in connection with training?
Registration fees for continuing training and the costs of buying books may be declared, provided that the latter are intended exclusively for professional use (specialist books which are not of general interest).
When should expenses for training courses spanning several years be deducted?
The taxpayer must deduct expenses in the tax return for the financial year in which they occurred.
For example, if, in October 2023, a taxpayer pays the full amount of the registration fees for a two-year training course, he/she can only claim these expenses on the 2023 tax return.
What information should be provided to the tax office?
You need to explain to your tax office what your professional activity consists of and how the continuous training in question can help you progress in your professional career.
You must also provide the tax office with supporting documents proving that you have paid the registration fees and that you have participated in the continuing training.