Tax allowable professional expenses (Further Education component)

Adults can deduct costs related to continuing vocational training for their current occupation or a future occupation from the base of their individual income tax. The state co-funding - in the form of foregone tax revenues - equals the eligible costs multiplied by the marginal tax rate (between 20 % and 55 %). Co-funded training is expected to sustain or increase future income, implying higher tax revenues later on. Eligible costs include tuition fees, costs for teaching material and professional literature, related travel and accommodation costs, and the costs of a computer. For the deduction, no ceiling is introduced. Individuals with no taxable income (an annual gross salary below EUR 11 000) cannot profit from the tax deduction. No comprehensive statistical information is available, however, the number of beneficiaries and the volumes of tax refunds are substantial (with an estimated volume of more than EUR 50 000 000). The tax incentive can be used once in each calendar year.