§3 No. 15 EStG
§3 No. 15 EStG is the legal basis for the tax exemption of employer subsidies for public transport – the foundation of the tax-free Jobticket in Germany.
What does §3 No. 15 EStG regulate?
§3 No. 15 of the German Income Tax Act (EStG) establishes that employer subsidies for public transport (Jobtickets) are tax-free – provided they are granted in addition to the regular salary.
Requirements for Tax Exemption
| Condition | Details |
|---|---|
| Additionality principle | Subsidy must be paid on top of salary (not as salary sacrifice) |
| Valid public transport | Ticket must be valid for public transport |
| Purpose restriction | Benefit may only be used for commuting |
| Employer documentation | Employer must be able to evidence the subsidy |
Impact on Commuter Allowance
When an employee receives a tax-free subsidy under §3 No. 15 EStG, their commuter allowance (Pendlerpauschale) is reduced by the subsidy amount.
Application with Jobticket+
| Model | Legal basis |
|---|---|
| 100% Employer Subsidy | §3 No. 15 EStG |
| Split Pay (employer share) | §3 No. 15 EStG |
| Salary Conversion | §40 Para. 2 Sentence 2 No. 1 EStG |
Not tax advice. Please consult a tax advisor.