Business expenses if properly documented and necessarily incurred may be
deducted by an individual, unless they are reimbursed by the employer.
This includes tools and equipment, technical literature, business subscriptions and
membership fees of professional associations. Travel to and from work is
recognised with a lump-sum allowance based on distance. There is a blanket
employee allowance for business deductions of €1,000 annually and itemising
the expenses actually incurred will only increase the deduction if they exceed
Non-business expenses such as social security contributions and insurance
premiums can be deducted up to specified limits. Mortgage interest is
deductible, but only against income from the property. Church tax (see below)
is deductible, but the deduction for tax advisors’ fees has been withdrawn.
Contributions to charities are deductible up to 20% of gross income. One-half of
an individual’s political contributions up to a total of €1,650 p.a., i.e. €825 is
deductible from his tax payable.