Professional costs

Do you incur more professional costs?

You may deduct these additional costs if they exceed an amount of USD 560. In this case, you must enclose annexes to the return demonstrating that you incurred greater professional costs.

Professional costs are costs incurred to properly perform your profession or to obtain your income. With respect to income from a current employment relationship and other income from labour, such as additional earnings, you are entitled to a fixed amount of USD 280. If your actual professional costs exceed an amount of USD 280 per year, you may deduct the actual costs insofar as these exceed an amount of USD 560. If you deduct the actual professional costs, you must enclose substantiating documents and a specification to the tax return.

Please note! The deduction of the actual professional costs or the lump sum cannot exceed the income. Deducting the actual professional costs is only more beneficial to you than the lump-sum deduction of USD 280 if the actual costs exceed an amount of USD 840.

Example 1: If your actual costs amount to USD 750, you can deduct USD 190 (750-560) in actual costs. However, the lump-sum deduction amounts to USD 280. For this reason, an amount of USD 280 will be used as professional costs.

Example 2: If your actual costs amount to USD 1500, you can deduct USD 940 (1500-560) in actual costs. Your lump-sum deduction is USD 280. Deducting the actual costs instead of the lump-sum deduction is more beneficial to you.

Please note! The following professional costs cannot be deducted:

• the workspace, including its furnishing, in your home, if:
  • you have a workspace outside of your home and less than two-third (2/3rd) of the overall amount of your earnings from labour, a company, or a profession is earned in the workspace in your home, or;
  • you do not have a workspace outside of your home and less than two-third (2/3rd) of the overall amount of your earnings from labour, a company, or a profession is earned in or from the workspace in your home, or;
• commuting;
• vessels used for representative purposes;
• clothing, except for workwear. Refer to below;
• literature, except for professional literature. Refer to below;
• telephone plans and Internet plans registered in the name of the taxpayer in a private capacity. Refer to below;
• personal care;
• food, beverages, stimulants, representation, festive events, excursions, study trips, including travel and accommodation expenses;
• gifts and business gifts;
• monetary fines;
• costs related to sentencing for a crime;
• costs to prevent criminal prosecution;
• bribes.