Bank account fees, known as “Kontoführungsgebühren” in German, are charges levied by banks for maintaining an account. These fees are common and often unavoidable, but many taxpayers wonder if they can claim them as tax deductions. The good news is that under specific circumstances, these fees may indeed be tax-deductible.
In this article, we will discuss the tax implications of Kontoführungsgebühren in Germany, how they relate to your taxable income, and the best ways to claim them on your tax return.
Understanding Kontoführungsgebühren
Kontoführungsgebühren refer to administrative fees charged by banks for managing accounts. These fees can include:
- Monthly account maintenance fees
- Transaction fees
- Fees for account statements
- Service charges for additional banking services
While some banks offer free accounts, others impose charges depending on the type of account and services provided.
Are Kontoführungsgebühren Tax-Deductible?
1. Personal vs. Business Use
Whether you can deduct these fees depends on the purpose of the account:
- Private Accounts: If your account is used solely for personal transactions, the associated fees are not tax-deductible.
- Business or Work-Related Accounts: If the account is used for business transactions or employment-related expenses, you may deduct a portion of the fees.
2. Tax Deduction for Employees
Employees who use their bank account to manage salary deposits and work-related expenses may be able to deduct part of their account fees. The German tax office (Finanzamt) allows a flat rate deduction of 16 EUR per year without the need for proof, under work-related expense deductions (Werbungskosten).
If your actual banking fees exceed this amount, you can claim a higher deduction by providing proof of the fees and demonstrating their necessity for work-related expenses.
3. Self-Employed & Business Owners
Self-employed individuals and business owners can deduct 100% of their account fees if the account is used exclusively for business transactions. If the account is used for both personal and business purposes, only a proportional deduction is allowed.
How to Claim Kontoführungsgebühren on Your Tax Return
1. For Employees (Angestellte)
Employees should claim bank account fees under “Werbungskosten” (work-related expenses) in their Einkommensteuererklärung (income tax return). Here’s how:
- Use Line 46 in Anlage N (Appendix N of the German tax return).
- If using the flat rate deduction of 16 EUR, no receipts are required.
- If claiming actual fees higher than 16 EUR, you must provide bank statements or invoices.
2. For Self-Employed & Business Owners
Self-employed individuals should deduct bank fees as a business expense under “Betriebsausgaben” in their tax return (Anlage EÜR for income-expenditure calculation or Anlage G/S for business income declaration).
Make sure to:
- Keep all receipts and statements.
- Separate personal and business transactions if using a mixed account.
- Allocate expenses correctly if claiming a percentage.
Additional Deductions Related to Banking
Apart from Kontoführungsgebühren, other bank-related expenses may also be tax-deductible:
- Loan Interest (Darlehenszinsen): If the loan is for business or investment purposes.
- Foreign Transaction Fees: If incurred for business transactions.
- Online Banking Costs: If you pay for special business-related banking services.
- Deposit Fees (Einlagegebühren): If linked to business investments.
Tips for Maximizing Tax Deductions
- Use a Separate Business Account
- If self-employed, maintaining a separate business account simplifies tax calculations and ensures you can deduct all related fees.
- Keep Track of Bank Fees
- Review your bank statements to track charges accurately.
- Use accounting software to categorize and document expenses.
- Consult a Tax Advisor
- German tax laws can be complex. If you have multiple deductions, a tax advisor can help optimize your tax return.
Conclusion
Kontoführungsgebühren can be tax-deductible depending on their use. Employees can claim a small flat-rate deduction, while self-employed individuals and businesses can deduct fees fully if the account is used for business purposes. Keeping clear records and understanding the tax rules will help you maximize your deductions and reduce your taxable income.
If you’re unsure about your eligibility or need assistance, consulting a tax professional can ensure compliance and help you make the most of available deductions.
