I enter an expenses receipt for 60 euros, cost category restaurant, percentage of professional deduction 69%.
So far so good, but when I look at the amount of personal income tax to be paid, only 22.26 euros is deducted.
Why is there this difference?
Aren't you actually giving the answer yourself? =)
60 euros, 69% professional, which means that 41.4 euros goes into your expenses.
If 41.4 euros goes towards your expenses, then you will have to pay 41.4 euros less in personal income tax. You will have a 50% tax impact on your personal income tax + some municipal tax.
So those 41.4 euros in expenses actually yield the next:
41.4 euros in expenses * (50% personal income tax + municipal tax rate) = 22.26 euros in tax impact. The amount of 'personal income tax paid' decreases, as you indicate.
That seems correct to me? But feedback is always welcome!
Regards, Peter
Seems perfect to me? Even the municipal tax will be included, because it is more than 50% tax burden, otherwise it would not be possible.
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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