Home-based business advocates push for tax deductions on office equipment expenses.
The call for a home office tax break 💰
Berlin - It's no secret that working from home has become the new norm for many businesses during the pandemic. Now, the Association of Medium-Sized Enterprises (BVMW) is urging the government to consider a tax break for companies that furnish their employees with home office equipment.
"Imagine if the federal government let companies temporarily write off the cost of providing employees with necessary tech gear to work from home," said BVMW Federal Managing Director Markus Jerger to the Funke media group (Wednesday editions). "It could be a game-changer for the post-pandemic economy."
However, Jerger admits that remote work may only be a temporary solution for smaller businesses in the long run. In many industries, it's simply not practical. But he points out that remote work has proven successful in service sectors during these challenging times.
📸 Working from home, via dts Nachrichtenagentur
As of mid-2025, Germany's tax policies and proposals regarding tax breaks for companies providing home office equipment during the pandemic are evolving but do not explicitly highlight new broad tax breaks targeted solely at such companies. Here's a closer look at the current situation:
Tax Incentives for Increasing Work Hours
The government's first tax bill published in June 2025 emphasizes tax incentives aimed at increasing individual work hours, but it does not specifically address tax breaks for companies providing remote work equipment.
Remote Work and Taxation Rules
Germany has revised its approach to remote work in taxation, particularly concerning cross-border employees. The updated double taxation agreement with the Netherlands (effective April 2025) includes a de minimis rule for remote work days undertaken in another country. This helps reduce the administrative burden for employers when employees occasionally work from home.
Hybrid Work Models Dominating
By 2025, hybrid work models have become the norm in Germany, as businesses invest in technology and infrastructure to craft an effective remote work setup. While companies are spending on tech devices, tax relief specifically for these devices has not been prominently updated or proposed in the latest government documents.
Compliance and Tax Reporting Complexity
With remote work becoming a permanent feature of many workplaces, companies face growing complexity in tax compliance, especially when employees work across borders. To manage this, automation and AI tools are increasingly necessary. However, these are cost considerations rather than qualified expenses for tax breaks.
In conclusion, while Germany continues to adjust its tax framework to the realities of remote work, specific tax breaks for companies that provide home office equipment during the pandemic do not form a significant part of current policy or proposals in 2025. Instead, the government is focusing on broader tax incentives, such as longer working hours and improved tax rules around remote work for cross-border employees.
"The Association of Medium-Sized Enterprises (BVMW) advocates for economic and social policy changes, suggesting a temporary tax break for companies that finance necessary home office equipment for their employees, which could play a crucial role in shaping the post-pandemic economic landscape."
"In the evolving tax policies of Germany as of mid-2025, while there are incentives for increasing work hours and improved taxation rules for cross-border remote work, specific finance-related tax breaks for businesses providing home office equipment do not appear to be a significant part of the current proposals."
