– 27. August 2025

Taxable income – deduction of education and training costs

Which education and training costs can be deducted from income? Not all education expenses are tax deductible. The decisive factor is whether the education or training is of a professional nature or not.

This is also evident from a decision by the Tax Appeals Commission of Basel-Stadt dated April 27, 2023 (STRK.2022.76, BStP 2025 No. 1), which did not allow the deduction of continuing education costs because they were not work-related.

Requirements for tax deduction

For some time now, no distinction has been made between education and continuing education. However, education and continuing education costs are only deductible from income if they are work-related. This includes education and continuing education aimed at refreshing, deepening, or expanding existing professional knowledge or acquiring new professional qualifications. It is not decisive whether the training or further education later leads to self-employment or employment. It is also irrelevant whether there is a direct connection with the current professional activity. However, it is important that the training or further education is of a certain quality in order to be considered career-oriented.

Non-deductible continuing education costs

Further training courses that primarily serve leisure activities or personal development, such as hobbies, are not considered career-oriented. Consulting services such as study or career counseling are also not considered career-oriented training and further education, as their primary goal is to solve a specific problem. The same applies to events in the field of entertainment or leisure activities. In the case under review, the court therefore denied the professional relevance, as the continuing education served to teach methods of personal development that may be helpful in everyday situations at best. It did not allow the deduction.

Further conditions and amount of the deduction

In addition to the professional relevance, a person must either have a secondary school diploma or be at least 20 years of age, provided that the costs are not incurred for initial secondary school qualifications.
If both conditions are met, all training and further education costs are deductible, provided they are self-funded, i.e., including travel expenses, accommodation costs, literature, etc. However, the amount of the deduction is limited and varies depending on the canton and the federal government.
If you have any questions regarding tax law, our attorneys will be happy to assist you.