Claiming a tax deduction for part-time study
TUITION FEES CAN BE CLAIMED ON YOUR TAX RETURN
Employees whose employers reimburse tuition costs are only exempt from paying taxes on this benefit under certain conditions. A letter from the Ministry of Finance clarifies these conditions.
All income from an employment relationship is considered income from employment subject to payroll tax. This generally applies to the reimbursement of tuition costs as well. Tax-free reimbursement of costs is only possible if the studies are pursued on a part-time basis. This is the case, among other things, when the studies take place within the framework of an apprenticeship. This means that the training program must be an integral part of the employment relationship.
EMPLOYEE IS LIABLE FOR TUITION FEES
In most cases, the employee is liable for the tuition fees. If the employer then covers the fees, it is presumed that the employer has a predominantly business-related interest if
- 1. the employer commits to covering the tuition fees in the employment contract and
- 2. a repayment clause exists. This can be stipulated either in the employment contract or in a separate agreement and must provide that repayment is due if the employee leaves the company of their own volition within two years of completing their studies.
