According to § 3c EStG, the so-called partial deduction ban applies to certain operating expenses and advertising costs. It applies whenever expenditure is directly or indirectly linked to tax-free income or future tax-free income. Let us take a closer look at the cases in which the partial deduction ban is to be applied and what concrete effects it has!
1. The principle of partial deduction prohibition (§ 3c (1) EStG)
§ 3c (1) EStG regulates the basic case of the partial deduction ban. Expenditure, insofar as it relates to tax-free revenue, must therefore not constitute advertising costs or operating expenses. The taxpayer can therefore not claim the corresponding expenses tax-reducing. In addition to all possible tax-free income, the provision also covers all eligible expenditure.
Examples of this are:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.