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Tax & Funding · Updated June 2026
Employee English Training: Tax-Free, Not a Taxable Benefit
The short answer: yes, an English course for employees is tax-deductible in Germany – and usually completely tax-free. Since 2020, employer-paid training is not a taxable benefit under §3 Nr. 19 EStG , free of social security contributions, and fully deductible as a business expense. Simmonds has taught company courses of this kind since 2004 and invoices them VAT-exempt under §4 Nr. 21 UStG; how the rules apply in your case is a question for your tax adviser.
Tax-free under §3 Nr. 19 EStG · 100% business expense
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Tax & Funding
Taxable Benefit or Tax-Free?
No – usually not. Since 1 January 2020, §3 Nr. 19 EStG explicitly makes employer-provided training tax-free when it improves employees' employability. A Business English course for meetings, emails, calls, or negotiations clearly meets this requirement. The result: no wage tax, no taxable benefit on the payslip, no social security contributions.
15+Years
10+Trainers
50+Corporate clients
Not Primarily a Reward
Even before 2020, training in the employer's predominantly own business interest (R 19.7 LStR) did not count as wages at all. If your sales team needs English for international clients, that was and is unproblematic for tax purposes. §3 Nr. 19 EStG added a safety net: even training that is not strictly job-specific but improves employability remains tax-free – as long as it is not primarily a reward.
The only pitfall: the reward character. A language course framed as an incentive trip or pure bonus would be taxable. A regular corporate course with a professional purpose – online, in-house, or with AI avatar training – is not. Practical tip: have the invoice issued to the company and briefly document the business purpose.
At a Glance
Wage tax: €0 (§3 Nr. 19 EStG).
Social contributions: €0 (exempt).
For the company: 100% deductible.
VAT: Exempt (§4 Nr. 21 UStG).
The Three Routes
Employer pays for the course: Tax-free under §3 Nr. 19 EStG, no taxable benefit, no social contributions, 100% business expense for the company. The standard route for corporate training – teams of 2–30 employees.
Employee pays personally: Deductible as income-related expenses (Werbungskosten) in the tax return, if job-related. For individuals whose employer does not (yet) pay.
State funding (QCG / education voucher): Up to 100% of costs covered – but only with AZAV-certified providers and a minimum of 120 teaching units. Rarely a fit: typical corporate courses (20–40 sessions) fall short of the 120-unit threshold.
Is a Course State-Funded?
Usually not – and that matters less than it sounds. Funding under the Qualifizierungschancengesetz (QCG) requires an AZAV-certified provider and at least 120 teaching units. A typical corporate English course of 20–40 sessions does not clear this threshold. The Agentur für Arbeit's education voucher primarily targets jobseekers, not employed teams.
The faster route for most companies: the course is tax-free and fully deductible anyway – the §3 Nr. 19 EStG exemption applies immediately, with no application, no certification hurdles, no waiting. For individual employees, Bildungsurlaub (educational leave) can also be interesting: in Lower Saxony and Berlin ('Bildungszeit'), employees are entitled to 5 days per year for recognised training – ask us about it.
Worked Example: 8 Employees
Group courses are priced per group, not per person. After the free placement test we prepare an individual quote for your team; the number of groups, level, sessions and duration determine its scope. All prices are net; language lessons are VAT-exempt under §4 Nr. 21 UStG.
The company deducts the actual course costs shown in the quote and invoice as a business expense. The stated tax conditions apply to employees. All prices are net; language lessons are VAT-exempt under §4 Nr. 21 UStG.
Note: This page provides general information and is not tax advice. Your tax advisor can clarify the details of your specific case. Last updated: June 2026.
Conditions
Three Conditions for Tax Exemption
For a Business English course for employees, all three are the normal case
The employer pays or reimburses
Condition 1
The company books the course directly or reimburses the cost against an invoice. The invoice should be issued to the company.
The training improves employability
Condition 2
Business English for meetings, presentations, emails, or industry-specific terminology clearly qualifies – English is a core skill in export-driven industries.
Not primarily a reward
Condition 3
The course is training, not a bonus. A regular corporate course with learning goals and a professional purpose is safe; a 'language holiday as a reward' would not be.
How much does it cost?
| Format | Duration | Price (approx.) | Notes |
|---|---|---|---|
| Online private lessons | 60 min | €65–70 | 1:1, Zoom / Teams / Meet |
| Online private lessons | 90 min | €95–105 | 1:1, Zoom / Teams / Meet |
| In person, Hanover | 90 min | €110 | At our Hanover office |
| In person, Berlin | 90 min | €120 | At our Berlin office |
| In-house at your company | by arrangement | on request | Travel included in the quote |
| Groups / corporate courses | by arrangement | on request | Priced per group, not per person |
Prices depend on format, frequency, and requirements. Language instruction is VAT-exempt (§4 Nr.21 UStG).
Who we work with
- NORD Holding
- DHL
- Toyota
- Media Markt
- Deutsche Pop
Frequently asked questions
Is an English course for employees a taxable benefit (geldwerter Vorteil) in Germany?+−
No, usually not. Since 1 January 2020, employer-paid training is tax-free under §3 Nr. 19 EStG if it improves employability – Business English for meetings, emails, or negotiations clearly qualifies. There is no wage tax and no taxable benefit.
Can our company deduct the English course as a business expense?+−
Yes, in full. Course costs are 100% deductible business expenses for the company. Our invoices are also VAT-exempt under §4 Nr. 21 UStG – the stated price is the final price.
Are social security contributions due on the English course?+−
No. Tax-free training under §3 Nr. 19 EStG is also exempt from social security contributions. Unlike a salary increase or bonus, neither employer nor employee pays payroll costs on it.
Can employees deduct an English course they pay for themselves?+−
Yes, as income-related expenses (Werbungskosten) in their German tax return, provided the course is job-related – for example, Business English for their current role or next career step. Keep receipts and a short note on the professional purpose.
Is a corporate English course funded under the Qualifizierungschancengesetz (QCG)?+−
Rarely. QCG funding requires an AZAV-certified provider and at least 120 teaching units – typical corporate English courses of 20–40 sessions do not meet this. The faster route for most companies: the course is tax-free anyway (§3 Nr. 19 EStG) and fully deductible.
Does the tax exemption also apply to online courses and AI avatar training?+−
Yes. The format is irrelevant for tax treatment – what matters is the professional purpose. Online corporate courses, in-person training, and supplementary AI avatar speaking practice are all treated the same.
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