| The State Tax Office of Niedersachsen has pointed out that, depending on the individual case, it must be checked whether Business partners are presented with gifts or whether herethe deduction limit for entertainment expenses (deduction of only 70 %) according to § 4 para. 5 S. 1 Nr. 2 Income Tax Act (EStG) applies.

Hospitality does not exist, if on a small scaleof appreciation as is customary as a gesture of courtesy at company meetings, for example.

However, since hospitality can also be a customary gesture of courtesy, it is essential that thethe extent of the attention shown is crucial. The non-recourse limit of EUR 60 specified in wage tax lawfor the term “attentions” cannot be applied. The question of whether expenses lead to wages has nothing to do with the requirements for proving expenses claimed as business expenses.

Source: LfSt Lower Saxony, order of 6 July 2023, ref. S 2145-St 226-2108/2023