The owner of a business has a permanent establishment at the fixed place of business of his client if he continuously works there, even if he has his own permanent establishment at a different place. After the revision of the tax law on travel expenses as of 2014, the first place of work is primarily determined based on the employee's contractual assignment or by internal instructions of the employer.
The Supreme Tax Court has upheld the three-month time limit on business travel subsistence allowances and also confirmed that an assignment only begins to run anew after an interruption of four weeks.
The finance ministry has accepted a Supreme Tax Court ruling that an employee cannot have more than one regular place of work with the same employer. Journeys to other premises are business trips.
The Supreme Tax Court has revised its case law to hold that an employee may be without a regular place of work at all, but in no event can have more than one.
The Supreme Tax Court has disallowed an expense deduction up to the higher lump-sum amount for accommodation on business travel, where the employer bore the actual amount payable.
