German tax office clarifies deductibility of employee welcome and farewell gatherings

German tax authorities distinguish between private courtesy and business‑related events when assessing expense deductions. Costs for a team welcome (Einstand) or farewell (Ausstand) can be treated as Werbungskosten only if the gathering is clearly job‑related, according to Daniela Karbe‑Geßler of the Bund der Steuerzahler: "Aufwendungen sind nur dann als Werbungskosten abziehbar, wenn sie eindeutig durch den Beruf veranlasst sind."

The Federal Fiscal Court has broadened the rules, allowing up to 70 % of such expenses to be deducted, while internal catering for colleagues may be fully deductible under strict documentation: "Bewirtungskosten für betriebsinterne Personen ... können unter Umständen sogar vollständig steuerlich abziehbar sein." Cases such as a Hessian court approving a civil‑service farewell party illustrate that clear documentation of the professional character, guest list, venue and purpose can make the costs eligible for deduction.