Non-Taxable Daily Allowance for Business Trips Abroad Increased to 90 Euros

January 13, 20250
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A business trip refers to an employee’s travel undertaken to perform business tasks outside their regular place of work. During these trips, employees incur certain expenses that the employer is obligated to reimburse. These reimbursements are regulated by laws, internal company policies, and collective agreements.

Reimbursements paid during business trips include several components, the most significant of which are:

  • Daily allowance – a monetary reimbursement covering meals, minor expenses, and other personal needs of the employee during the business trip.
  • Transportation costs – expenses related to travel, including flight tickets, private vehicle usage, and similar.
  • Accommodation costs – reimbursement for hotel stays, apartments, or other lodging.
  • Additional costs – tolls, parking fees, seminar fees, telephone expenses, and similar.

 

Increase of the Non-Taxable Daily Allowance as of 2025

From January 1, 2025, the non-taxable amount of the daily allowance for business trips abroad will be increased to 90 euros. This increase marks a significant step forward compared to the previous amount of 50 euros, which had been in effect since 2016.
Although the increase in the non-taxable amount provides employers with more flexibility, this does not mean they are automatically obligated to pay the full amount of 90 euros to employees. The amount of the daily allowance paid will depend on the employer’s internal rules, business policies, and collective agreements.

 

 

What Does the Daily Allowance Cover and How Is It Calculated?

The daily allowance is the primary form of reimbursement for food and minor expenses incurred during an employee’s stay on a business trip. Its amount depends on the following factors:

  • Duration of the business trip (whether it is a one-day or multi-day trip),
  • Destination country (the allowance for travel within Europe may differ from allowances for trips to the Middle East or Asia),
  • Employer’s internal policy (each company can independently determine the amount paid).

According to regulations, any amount exceeding the non-taxable limit of 90 euros is subject to taxation. Amounts above the prescribed limit are taxed as personal income tax at a rate of 10%.

 

 

Transportation Costs and Reimbursement Rules

Transportation costs are one of the most common expenses during business trips. These costs may include:

  • Plane, train, and bus tickets,
  • Compensation for using a private vehicle (paid based on the kilometers traveled),
  • Costs of tolls, parking fees, and other related expenses.

 

The employer is obligated to reimburse transportation costs to employees, provided that all necessary proofs are submitted, such as travel orders, transportation receipts, or other relevant evidence. The compensation amount for using a private vehicle is determined based on mileage and current rates.

 

Accommodation Costs During Business Trips

Employers are required to provide employees with appropriate accommodation during a business trip or reimburse their accommodation costs. Lodging may include hotel stays, apartments, or accommodations booked through specialized platforms.
If the employee uses their own resources for accommodation (e.g., staying with relatives), the employer may pay a lump-sum accommodation reimbursement. To ensure reimbursement, the employee must provide receipts or other proof of accommodation costs.

 

Additional Costs and Reimbursement Procedures

In addition to basic expenses, employers often cover additional costs, including:

  • Parking fees and tolls,
  • Business-related telephone expenses,
  • Seminar and training fees,
  • Meal costs outside the daily allowance.

All these costs must be pre-defined through the employer’s internal policies. Documentation, such as receipts and travel orders, is used as proof for reimbursing additional costs.

 

 

Employer Obligations Regarding Business Trips

Employers are legally required to establish clear rules regarding business trip expenses. These rules include:

  • Defining the amount of daily allowances and other reimbursements in internal policies,
  • Transparent procedures for approving business trips and controlling expenses,
  • Timely calculation and payment of reimbursements to employees.

If the employer fails to provide appropriate reimbursements, employees can request compensation for damages or contact the labor inspection.

 

Stefan


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