FIS is recognized as an "allgemeinbildende Ergänzungsschule" (a private, independent school providing general primary/secondary education). 30% of fees (tuition plus capital assessment plus registration fee) for children in Grades 1-12 are tax-deductible as "Sonderausgaben" (extraordinary expenses).
Capital Assessment Fee - Tax-Deductible
Many of you have had problems with your finance authority (Finanzamt) when filing your tax returns. Some tax offices do not allow the Capital Assessment Fee (first year €5,500, second year €5,500) as tax-deductible expense under the heading "Sonderausgaben". The tax offices were basing this decision on an incorrect interpretation. Thanks to our efforts, however, the regional finance office (Oberfinanzdirektion – OFD), whose instructions are binding for the Finanzämter, have stepped in. To obtain this ruling, FIS furnished the OFD with documents and proofs that the Capital Assessment Fee is indeed used for the school's building operation.
If you have a recent income tax assessment (Einkommensteuerbescheid) and are experiencing problems with the tax office with regard to the acknowledgment of the Capital Assessment as part of a "Sonderausgabe", you should lodge an objection (Einspruch) and draw their attention to the fact that the OFD has issued an order in this connection, quoting their reference number S 2221A-67-St II27.
First Steps, Pre-Primary, Primary
Additional benefits reimbursed to you or paid on your behalf by your employer are normally treated as taxable income (geldwerter Vorteil). Fees for pre-school children are not treated as taxable income under the following conditions:
- At least one parent must be employed and subject to income tax.
- The employer of the tax-paying parent agrees to provide the required fees as additional remuneration together with the regular monthly salary.
- The employer pays the fees for the children directly to FIS-The employer reimburses the fees to the employee upon presentation of the FIS invoice paid by the employee.
- The fees paid to FIS may consist only of expenses for the accommodation and supervision of children.
Not included in the above are:
- Transportation expenses or instructional costs.
The expenses must be incurred exclusively for pre-school children. The applicable legal regulations can be found in Section 3 No. 33 of the German Income Tax Law and Paragraph 21a of the Wage Tax Law.
If you employ the services of a tax advisor, he/she will advise you further, or you are welcome to call our Business Manager, Detlev Siebrecht, at +49 (0) 6171-2024-492.