travel daily allowance

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Per diem rates

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Per Diem Lookup

FY 2024 Per Diem Rates Now Available

Please note! The FY 2024 rates are NOT the default rates until October 1, 2023.

You must follow these instructions to view the FY 2024 rates. Select FY 2024 from the drop-down box above the “Search By City, State, or ZIP Code” or “Search by State" map. Otherwise, the search box only returns current FY 2023 rates.

Rates are set by fiscal year, effective Oct. 1 each year. Find current rates in the continental United States, or CONUS rates, by searching below with city and state or ZIP code, or by clicking on the map, or use the new per diem tool to calculate trip allowances .

Search by city, state, or ZIP code

Required fields are marked with an asterisk ( * ).

Search by state

Have travel policy questions? Use our ' Have a Question? ' site

Have a question about per diem and your taxes? Please contact the Internal Revenue Service at 800-829-1040 or visit www.irs.gov. GSA cannot answer tax-related questions or provide tax advice.

Need a state tax exemption form?

Per OMB Circular A-123, federal travelers "...must provide a tax exemption certificate to lodging vendors, when applicable, to exclude state and local taxes from their hotel bills." GSA's SmartPay team maintains the most current state tax information , including any applicable forms.

PER DIEM LOOK-UP

1 choose a location.

Error, The Per Diem API is not responding. Please try again later.

No results could be found for the location you've entered.

Rates for Alaska, Hawaii, U.S. Territories and Possessions are set by the Department of Defense .

Rates for foreign countries are set by the State Department .

2 Choose a date

Rates are available between 10/1/2021 and 09/30/2024.

The End Date of your trip can not occur before the Start Date.

Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.

Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries."

Per diem localities with county definitions shall include "all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)."

When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.

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Travel allowance: A Comprehensive Guide for Employees

Written by: Rinaily Bonifacio
Last updated: 11 March 2024

employee traveling, employee travel allowance

This article will explain travel allowance, when and how you can use it, and tips for getting the most out of your expenses.

Table of contents

What is travel allowance?

How does business travel allowance usually cover, what is a flat travel allowance, what is the daily allowance, easy ways on how companies manage their procedures for business travel allowances, effective communication, how to manage business travel allowances.

Travel allowance is a type of compensation employers provide to cover employee travel expenses incurred when traveling for business purposes. It helps with employee travel costs, such as transportation, lodging, meals, and other incidentals while on the job. Depending on the company policy, travel allowance may be given in cash or as reimbursed expenses.

For example, some companies provide a fixed daily amount for meals and lodging that employees can use during their travels. Other companies cover expenses incurred by employees when they submit receipts after their trip has ended. This is known as per diem allowance or transport allowance.

Business travel allowance typically covers the cost of airfare, hotel accommodations, and meals. It may also include per diem allowances such as ground transportation, parking, and incidentals. The exact coverage will vary depending on the company's policies and the type of business trip.

A flat travel allowance is a set amount of money an employee provides for travel costs. The employee is responsible for managing the funds and ensuring they are used for the intended purpose. This allowance is typically used for short trips or employees who travel infrequently.

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A daily allowance, also known as a per diem, is a set amount of money provided to employees for money incurred daily while traveling for business purposes. It typically covers things such as

Transportation
And incidentals.

The allowance amount is usually based on the location and duration of the business trip and is intended to cover living costs for that specific location.

Daily allowances are provided in addition to other travel compensation types, such as lodging or airfare reimbursement. The amount and coverage of a daily budget will vary depending on the company's policies and the nature of the business travel.

Companies can manage their procedures for business travel allowances by establishing clear guidelines and policies. This should include information on who is eligible for the assistance, what travel costs are covered, and how to submit expense reports. Additionally, companies can use travel management software to track and approve payments and ensure company policy compliance.

It is also essential for companies to communicate effectively with employees about travel allowance policies so that they are aware of their rights and obligations. This can include providing training and support and regular updates on any policy changes.

By managing their procedures for business travel allowances in a clear and organized manner, companies can ensure that their employees have the resources they need to complete their business trips while also managing the company's expenses.

businessman-wearing-suit-standing-at-train-station-2022-03-04-02-14-25-utc_50

Another critical aspect of managing business travel allowances is to keep an eye on the per diem rates and lodging expenses. It is essential to ensure that these expenses are within the budget and are in line with the rates established by the General Services Administration (GSA). Companies should also consider implementing a system for meal allowance and car hire reimbursement, as well as for laundry services, parking fees, and other miscellaneous expenses.

To manage business travel allowances effectively, companies should establish clear guidelines for employees traveling within the continental United States and those traveling to foreign countries. This includes setting a budget for each travel and providing employees with the necessary forms for expense reporting and reimbursement.

In addition, companies can use data analysis to identify trends and patterns in travel expenses. This can help them make more informed decisions about travel policies and budgeting and potentially save money on future trips.

It's also important to consider the needs of business travelers and their families and to establish policies that support them. For example, companies may offer additional allowances for family members traveling with a business traveler or for international travel.

Overall, an efficient reimbursement system and clear travel policies can help ensure that employees are promptly reimbursed for their expenses and that the company's expenses are tracked and managed effectively. This can be a great way to manage business travel allowances and keep costs under control.

Written by:

Rinaily Bonifacio

Rinaily is a renowned expert in the field of human resources with years of industry experience. With a passion for writing high-quality HR content, Rinaily brings a unique perspective to the challenges and opportunities of the modern workplace. As an experienced HR professional and content writer, She has contributed to leading publications in the field of HR.

Please note that the information on our website is intended for general informational purposes and not as binding advice. The information on our website cannot be considered a substitute for legal and binding advice for any specific situation. While we strive to provide up-to-date and accurate information, we do not guarantee the accuracy, completeness and timeliness of the information on our website for any purpose. We are not liable for any damage or loss arising from the use of the information on our website.

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IRS updates business travel per-diem rates

Individual Income Taxation

The IRS issued its annual update Friday of special per-diem rates for substantiating ordinary and necessary business expenses incurred while traveling away from home ( Notice 2021-52 ).

The new rates are in effect from Oct. 1, 2021, to Sept. 30, 2022. Specifically, they are the special per-diem rates, including the transportation industry meal and incidental expenses rates; the rate for the incidental-expenses-only deduction; and the rates and list of high-cost localities for purposes of the high-low substantiation method.

The updated rates are effective for per-diem allowances paid to any employee on or after Oct. 1, 2021, for travel away from home on or after that date, and supersede the rates in Notice 2020-71, which provided the rates for Oct. 1, 2020, through Sept. 30, 2021.

Rev. Proc. 2019-48 provided general rules for using a federal per-diem rate to substantiate the amount of ordinary and necessary expenses for lodging, meals, and incidental costs paid or incurred for business-related travel away from home.

High-low substantiation method

For purposes of the high-low substantiation method, the per-diem rates are $296 for travel to any high-cost locality and $202 for travel to any other locality within the continental United States (CONUS), both slightly higher than last year.

The amount of these rates that is treated as paid for meals for purposes of Sec. 274(n) is $74 for travel to a high-cost locality and $64 for travel to any other locality within CONUS, both also slightly higher than last year.

The notice contains a list of the localities that are high-cost localities (localities that have a federal per-diem rate of $249 or more, $4 higher than last year) for all or part of the calendar year.

Incidental expenses

Since 2012, incidental expenses have included only fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. The per-diem rate for the incidental-expenses-only deduction remains unchanged at $5 per day for any locality of travel.

Transportation industry

The special meals and incidental expenses rates for taxpayers in the transportation industry are $69 for any locality of travel within CONUS and $74 for any locality of travel outside CONUS, both $3 more than last year.

— Paul Bonner ( [email protected] ) is a JofA senior editor.

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Travel and Expense

What is a travel allowance definitions and insights.

A travel allowance can be an effective way to manage employee travel expenses and manage costs for the employee.

When employees travel for business, there are myriad expenses, from hotels to taxis or ride-sharing services. Using a travel allowance can help give travelers flexibility and control while increasing compliance with tax regulations.

What Is a Travel Allowance?

A travel allowance is compensation paid by an employer to employees to cover expenses incurred when traveling for business. In addition to lodging and transportation, travel allowances are typically used for airfare, meals, and other expenses related to business travel. It is business travel compensation, provided either before or after travel is completed.

Managing business travel compensation can be complex and hard to manage. The way businesses handle travel compensation is changing, as leaders look to implement tools that aid travelers and companies alike.

Technology is transforming how companies manage all aspects of employee travel , including the creation and coordination of travel allowances.

Types of Travel Allowance

There are many types of travel allowances, which can be given upfront or based on a reimbursement schedule. Here is a look at some of the most common.

Fixed Travel Allowance

A fixed travel allowance is a flat rate that is offered to an employee, irrespective of the level of expenses incurred. Employees are responsible for managing their travel expenses and determining how to use the money best to accommodate their needs. It is commonly used with employees for short trips or who travel infrequently.

Typically, with a fixed allowance, if the employee spends less than the allocated amount, the employee can keep the difference. If the employee spends more, they are responsible for making up the difference. Businesses using fixed travel allowance should work with their tax professional to understand the implications of this practice.

Daily Travel Allowance

Also called a per diem, a daily travel allowance is an amount used for each day of travel and can be used for lodging, transportation, meals, and other travel expenses. Typically, a traveler will reconcile the per diem by submitting an expense report and receipts. The traveler will be reimbursed for any expenses they spent in excess and will return money that was unspent.

Travel Reimbursement

This travel allowance requires the traveler to submit receipts for actual expenses incurred, which are then reimbursed. This process can be cumbersome and time-consuming for the traveler. If reimbursement is not done in a timely manner, it can be burdensome for the employee, who is essentially lending money to the company. Fortunately, there are technologies available today to simplify this work.

Mileage Allowance

This type of allowance pays the employee for miles traveled on business. It is typically used when employees use their own car for business-related travel. Technologies can tracking and reimbursing for mileage simpler and more accurate.

Methods for Calculating Travel Allowances

When using travel allowances as part of a corporate travel program, one key consideration is how the travel allowances are calculated.

The process often has to consider the distance traveled and the time spent traveling. Here is one way to calculate a travel allowance.

Location and Days of Travel

Start by determining the location of the traveler at midnight on each day of travel. A day of travel is defined as a 24-hour period an employee is conducting business while traveling.

The day of travel ends when the next day starts or they return home from a business trip to their home or office. For example, if an employee leaves for a trip at 4 p.m., the first day of travel is from 4 p.m. that day until 4 p.m. the next.

Lodging allowances are provided based on whether an employee spends the night in accommodations other than their own home. Typically, lodging allowances are based on the location and the current price rates for various hotel categories, based on company preferences for the level of hotels allowed.

Unlike with other categories, usually lodging is an either/or determination. Employees are either allowed the lodging allowance or not based on the circumstances of the trip.

Like with lodging, meal allowances are usually based on the prevailing costs of meals in each location. It assumes that a traveler will have three meals a day.

Typically, a meal allowance covers both meals and incidentals, such as snacks. Often it is prorated based on the time in any given day a traveler is on the road.

The meal allowance may also be reduced if there are meals provided as part of the work travel, such as part of a conference registration fee or transportation ticket.

Managing Travel Allowances

Managing travel allowances is a complex task. Here are some tips on how to effectively implement and manage a program:

Develop a Clear Policy. Travelers need to understand the specifics in your travel program and how allowances are used. The policy needs to spell out, for example, what expenses are allowed and not allowed and the ways in which allowances are calculated. Transparency is essential to ensure all employees understand how travel expenses are covered
Consider Incidentals. Business travelers face many complexities and challenges. You want a policy that makes it easy for travelers to navigate while on the road. Be sure your policy covers costs that may arise, including parking, fuel, tips, laundry services, printing, internet fees, and luggage check fees
Analyze Data. You need a system in place that collects and reports on travel data to allow you to better understand trends, shifts and challenges. With visibility into your travel program, you can make timely, well-informed decisions

Developing Travel Allowance Policies and Guidelines

If your company wants to develop a travel allowance policy, where should you begin?

The policy should be rooted in a broader travel policy which should consider the following:

Scope. What aspects of business travel will your policy cover?
Coverage. Determine which elements of travel the policy will cover, such as air travel, lodging, meals, incidentals, and ground transportation
Reimbursement Types. Will your company use travel allowances and, if so, which types?
Participation. How will policies be determined? Be sure to include staff from human resources, finance, and departments that frequently travel, in determining the policy
Safety. Be sure your policy provides protection for employees while they are traveling
Expense Reporting. Develop tools or adopt that will be used for the reporting of travel expenses, with an emphasis on scalability, technology integration, and ease of use

Technological Advancements in Travel Allowance Management

Technology is changing the way companies manage business travel . There are powerful platforms available today that integrate travel policies, allow for the booking of travel and itinerary management and provide robust data collection and travel.

Employees need access to easy-to-use tools that allow for the recording of receipts and other transactions, let them reconcile expenses and generate expense reports, and simplify approvals and routing.

SAP Concur solutions can provide companies with integrated business travel, expense, and invoice solutions. With SAP Concur solutions, companies can book travel, manage expenses, integrate with business systems, manage invoices, and more.

Learn more about how SAP Concur solutions can simplify your travel management .

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Travel allowances

Explains the PAYG withholding implications on travel allowances.

Last updated 24 August 2021

Travel allowance is a payment made to an employee to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight in the course of their duties.

Allowances folded into your employee's salary or wages are taxed as salary and wages and tax has to be withheld, unless an exception applies.

You include the amount of the travel allowance in the allowance box on your employee's payment summary.

The exception applies if:

you expect your employee to spend all of the travel allowance you pay them on accommodation, food, drink or incidental expenses
you show the amount and nature of the travel allowance separately in your accounting records
the travel allowance is not for overseas accommodation
the amount of travel allowance you pay your employee is less than, or equal to the reasonable travel allowance rate.

If the exception applies, you:

don't withhold tax from the travel allowance you pay your employee
don't include the amount of the travel allowance in the allowance box on your employee's payment summary
only include the allowance on their payslip.

If the first two exception conditions are met but you pay your employee a travel allowance over the reasonable travel allowance rate, you're required to withhold tax from the amount that exceeds the reasonable travel allowance rate. You also need to include the total amount of the travel allowance in the allowance box on your employee's payment summary.

You are always required to withhold tax from a travel allowance for overseas accommodation and include the amount of the travel allowance in the allowance box on your employee's payment summary.

Check the relevant Single Touch Payroll (STP) employer reporting guidelines to see how to report these payments through STP:

STP Phase 1 employer reporting guidelines – allowances
STP Phase 2 employer reporting guidelines – allowances

Reasonable travel allowance rate

Each year we publish the amounts we consider reasonable for claims for domestic and overseas travel allowance expenses.

TD 2021/6 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2021–22 income year?
TD 2020/5 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2020–21 income year?
TR 2004/6 Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses
Keeping travel expense records
Tax return – allowances
Tax return – work-related travel expenses

Travel Allowances, Mileage and Per Diem Rates

Expenses for travel on official business by University employees are reimbursed at the following rates set by State legislation , the Internal Revenue Service (IRS), the US General Services Administration (GSA), US Department of State and the Department of Defense as applicable.

Transportation by Vehicle

University travelers are encouraged to use a state-owned or leased vehicle through Fleet Services . If a state-owned or leased vehicle is not available, travelers should use the least expensive method of ground transportation to meet their business needs.

When a personal vehicle must be used, the allowable IRS mileage rate, effective Jan. 1, 2024 is:

Mileage reimbursements up to 350 miles (round-trip) are reimbursed at the full IRS rate. For trips which exceed 350 miles, mileage above the first 350 miles is reimbursed at fifty percent (50%) of the full rate. Please refer to 1501.4 – Procedure on Ground Transportation Expenses Including Mileage Rates for more information.

Lodging and Meals (Per Diem)

Per diem is the allowable amount for room and meals based on the destination and dates of travel as detailed below. See 1501.5 – Procedure on Per Diem Rates and 1501.6 – Procedure on Lodging Accommodations for more information.

Reimbursement for lodging may be made only in the amount documented by an itemized receipt of actual lodging expenses from a commercial lodging establishment.

Effective for travel beginning March 1, 2023, the University will now utilize the lodging per diem rates set by the US General Services Administration (GSA), US Department of State and Department of Defense as applicable. Travelers should secure lodging no more than 50% higher than the lodging rates set for their destination and dates of travel. Lodging rates only apply to the nightly room rate charged by the establishment and do not include taxes and fees. Lodging obtained in excess of these rates will require additional information.

For more information on lodging rates, excess lodging and third-party lodging information see 1501.6 – Procedure on Lodging Accommodations .

University travelers are only eligible for meal per diem when they make an overnight trip. Partial day per diem is possible when the partial day is the day of departure or return for a trip, but it must be in conjunction with an overnight trip taken. Reimbursement of meals outside of overnight travel is not permitted.

Tax and tips for meals are included in the per diem rate. The cost of meals included in other related activities (registration fees, conference costs, hotel registration, etc.) may not be duplicated in reimbursement requests.

Effective for travel beginning March 1, 2023, the University will now utilize the per rates set by the US General Services Administration (GSA), US Department of State and Department of Defense as applicable.

For employees, all rates are loaded in Concur and will populate based on the dates and location of travel and the meals selected by the traveler for reimbursement.

For all other travelers:

Look up the rate based on the destination and dates of travel utilizing the links above.
First and last day of travel are calculated at 75% of the day’s total rate, regardless of the traveler’s time of departure or time of return.
If a meal was provided to the traveler and not paid for out of pocket, that meal must be deducted from the full day’s per diem rate. A breakdown of meal rates are included in the links above.
If meals are provided to the traveler on the first or last day of travel, the 75% calculation is taken first and then the full meal rate is deducted. For example, if dinner is provided on the first day of travel for a location with a $65 per diem rate the calculation will be $65 x 75% = $48.75 – $26 Dinner = $22.75.
Per diem reimbursement for a given day of travel will never be less than the incidental rate for that day, regardless of the calculations above.

For more information on per diem rates, see 1501.5 – Procedure on Per Diem Rates .

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Per diem is a daily allowance given to an employee to cover business travel expenses such as lodging, meals and incidentals while traveling for the company. Learn more about per diem .

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Home » Hot Topics » Germany per diem rates and how to manage employees travel expenses

Germany per diem rates and how to manage employees travel expenses

3 September 2022

Do you find Germany per diem rates and the reimbursement of travel expenses for employees complex? This article breaks it all down for you so you can stay compliant.

One of the most frequently asked questions we get asked by our clients is how to manage employees travel expenses and Germany per diem rates. German regulations governing per diems, telecom expenses, hotel costs, meals reimbursements, mileage and so on, can often be confusing and different from an organization’s home-country rules.

Companies setting up shop in Germany are understandably concerned about how challenging it can be to stay compliant with German tax laws and want to avoid fines and reputational damage.

For this reason, we have decided to write this article with the aim of providing not only an overview on German travel expense reimbursements (as part of good expatriate management best practices ) but also to dissect and explain some of the finer details surrourding the complex circumstances companies face.

What are per diem rates?

According to Investopedia.com per diems (in German “ Tagespauschalen ”), from the Latin for “ by the day ”, refers to daily allowances paid to employees to cover costs incurred while on a business trip.

More specifically, the law in Germany talks about a lump sum for meals being paid to an individual as compensation for the expenses incurred in working outside their home and main workplace.

Moreover, an employment contract (or any other company issued policy) or collective bargaining agreement may also stipulate that per diems are to be used to reimburse employees.

Tax repercussions are likely (although as we will discuss in this article, not for all expenses categories) if employers choose to reimburse employees for actual expenses above the permitted per diem’s allowance instead.

On the other hand, there is less of an administrative burden for both companies and their employees when sticking with per diem rates as there is no need to:

– submit an itemized claim

– attach accompanying receipts

– update per diem rates each year in line the rising cost of living (the German Finance Ministry takes care of it)

What is not covered by Germany per diem rates

Now that we have a per diem definition and a law clarifying what per diem allowances are meant to cover in Germany, let us briefly look at what type of travel expenses, per diems are not meant to cover:

Air fares
Transport to and from the airport and/or meetings
Hotel costs for staying overnight
Breakfast, lunch and/or dinner whilst meeting clients

These types of expenses should be in fact be claimed as part of a separate expenses claim request (a template is provided towards the bottom of this article) for actual travel expenses incurred.

Per diem rates within Germany

When employees are traveling on business within Germany the costs of subsistence (drinks and meals) is typically reimbursed according to the applicable per diem rates which currently are:

– between 8-24 hours, 14 EUR

– for a full 24 hours day, 28 EUR

For the first and last day of travel, the applicable per diem rate is always 14 EUR.

Furthermore, there is also an overnight allowance of 20 EUR for accommodation.

In practice though, only self-employed individuals tend to claim this allowance via their German tax return as accommodation is usually fully paid by the employer for travelling employees.

Conditions for eligibility of per diem allowances

We have already discussed above what is not covered by per diem allowance.

Let us now look more specifically at what are some of the conditions to be fulfilled for employees to be eligible to claim the above mentioned per diem rates in full.

The main condition is that the full per diem meal allowances will only be paid if the employee actually covers the costs of their own food .

In the case of meals that the employee took and that are included for example in a hotel invoices (breakfast, lunch, dinner) or that the employer provided, there will be a compulsory reduction of the lump sum amount entitlement as follows:

– 20% reduction if breakfast is already included in hotel invoice

– 40% reduction if lunch / dinner are already provided by the employer.

It is also worth mentioning that meals provided by the employer for trips shorter than 8 hours are treated as fringe benefits and thus taxable on the employee are the following nominal values:

– breakfast, 1.77 EUR

– lunch or dinner, 3.30 EUR

Other conditions / rules attached to the eligibility for per diem rates in Germany include:

– hours can be added together for multiple trips within the same day

– The tax-free reimbursement can only be for 3 continuous months of business travel. These 3 months can then be reset after a 4 weeks break

– All expense invoices should be addressed to the company’s corporate address and if they exceed 150 EUR, they should state the VAT amount

Per diems outside of Germany

Considering that the cost of living between countries (and sometimes even between cities within the same country) can vary significantly, the German Ministry of Finance each year publishes a table with the up to date international per diem rates.

However, due to the Covid pandemic, the international per diem and overnight allowances issued by virtue of the German Federal Travel Expenses Act, have not been updated on January 1, 2022.

As a result, the tax-free per diem lump sums published by the BMF letter dated 3 December 2020 , on “Tax treatment of travel expenses and travel expense allowances for business and professional trips abroad from January 1, 2021” – Federal Tax Gazette Part I (BStBl I) page 1256, are also valid for the calendar year 2022.

Overview of other travel expense reimbursements in Germany

Entertainment.

Entertainment expenses for events in which only employees working for the same company took part are not accepted as an external party also needs to be involved.

Additionally, invoices for entertainment expenses reimbursements should clearly show the following information:

Employee/s name/s
Name/s of the people entertained
The reason for the entertainment provided
The place, date and signature

0.30 EUR/Km can be reimbursed tax-free. The lump sum rate covers all expenses related to the car such as insurance, depreciation, petrol / diesel, maintenance, car wash, etc.

Tax-free reimbursements for expenses incurred during business use for private cars can only be paid if the employees states on their expenses claims the driven KMs and other relevant details about the trip such as start / end KMs balance, details of the route taken and the reason for the trip.

Anything paid in addition to the 0.30 EUR/KM rate, will be deemed taxable.

This means that the amount will have to be split up in a tax-free part and a taxable part (taxed at individual income progressive tax rates).

Telecom expenses / home office

If the home telephone / mobile phone / internet contracts are between the telecommunication company and the employee and not between the telecommunication company and the employer, there are 4 possibilities to reimburse these expenses:

1) The employer can pay a monthly lump sum of 20% of the invoice amount up to a max. of 20 EUR tax free to the employee. Any additional reimbursements would be taxable.

2) If the employee highlights the costs incurred for the employer on the telecommunication company’s itemized bill every month, the employer can reimburse those costs tax-free.

3) If the employee highlights the costs incurred for the employer on the telecommunication company’s itemized bill for a period of 3 months, a typical percentage of total expenses concerning the employer can be calculated on the overall total bill, which can then be compensated tax free going forward every month. Any additional reimbursements above the calculated percentage apportionment would be taxable.

4) The employees could prove they have two different mobile phones / landline numbers so that they could clearly be differentiated between the one used for business purposes and the one used for private purposes. In such a scenario, all the expenses incurred for business purposes on the dedicated line / number can be reimbursed tax-free.

Hotel costs

Hotel stays during a business trip can be fully reimbursed tax free provided the invoice is addressed to the employer and not to the employee.

Other expenses

Other expenses such as flight, train or bus tickets can all be reimbursed in full tax-free.

Similarly, the following ancillary expenses can also be reimbursed tax-free for the full actual amount incurred:

– Storage of luggage (including luggage insurance)

– Letters to the employer or to business partners / clients

– Parking fees / tolls

– Rental car at the place of the destination

– Damages to the employee’s belongings if they are typical for business traveling

To help employees with their expenses claims, our travel expenses form may be downloaded here and used when submitting reimbursements requests (if the employer is not already providing one).

FAQ on Germany per diem rates and travel expenses reimbursements

Assuming the company chooses to reimburse the employee for the actual expenses amount incurred which happens to be above an allowable tax-free rate / per diem, does the employer have any compliance requirements in terms of reporting the difference .

(i.e. employer taxes and/or any requirements to report on the employee’s behalf with potential penalties if they don’t)?

Yes, the exceeding part is considered salary and as such subject to taxes and social security contributions.

As in the case of salary, the employer taxes the employee at source and has to fulfill his tax and social security obligations at all times.

The employee is the debtor of the income tax but the employer deducts it from him / her.

The employer is therefore responsible for withholding the applicable income taxes and social security contributions from the employee’s pay and thus liable, in case they do not.

Failure to do so could be deemed a criminal offence pursuant to Sec. 266a StGB (Criminal Law Act) .

Contact us should you require further clarifications on per diem rates and travel expenses reimbursements in Germany and/or have a look at some of the other insights we have published.

You might also be interested in:

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Topic no. 511, Business travel expenses

ATO Reasonable Travel Allowances

‘Reasonable’ allowances received in accordance with ATO’s reasonable travel allowances schedules are not required to be declared as income, and can be excluded from the expense substantiation requirements.

Per diem rate schedules of amounts considered reasonable are set out in Tax Determinations published by the Tax Office annually.

Tax Ruling TR 2004/6 describes the substantiation exception for expenses which are in line with the prescribed reasonable allowance amounts.

2021, 2022, 2023 and 2024 rates and for prior years are set out below.

The annual determinations set out updated ATO reasonable allowances for each financial year for:

overtime meal expenses – for food and drink when working overtime
domestic travel expenses – for accommodation, food and drink, and incidentals when travelling away from home overnight for work
overseas travel expenses – for food and drink, and incidentals when travelling overseas for work

On this page:

2017- 18-Addendum

More information

Substantiation rules

Substantiation in practice

Alternative: Business travel expense claims

Distinguishing Travelling, Living Away and Accounting for Fringe Benefits

See also: Super for long-distance drivers – ATO

Allowances for 2023-24

The full document in PDF format: 2023-24 Determination TD TD 2023/3 (pdf).

The 2023-24 reasonable amount for overtime meal expenses is $35.65.

Reasonable amounts given for meals for employee truck drivers (domestic travel) are as follows:

breakfast $28.75
lunch $32.80
dinner $56.60

For full details including domestic and overseas allowances in accordance with salary levels, refer to the full determination document:

2023-24 Domestic Travel

Table 1：Salary $138,790 or less

Table 2: Salary $138,791 to $247,020

Table 3: Salary $247,021 or more

Table 4: High cost country centres accommodation expenses

Table 5: Tier 2 country centres

Table 5a: Employee truck driver’s meals (food and drink)

2023-24 Overseas Travel

Table 6: Salary $138,790 or less

Table 7: Salary $138,791 to $247,020

Table 8: Salary $247,021 or more

Table 9: Table of countries

Table 1：Reasonable amounts for domestic travel expenses – employee’s annual salary $138,790 or less

Table 2: Reasonable amounts for domestic travel expenses – employee’s annual salary $138,791 to $247,020

Table 3: Reasonable amounts for domestic travel expenses – employee’s annual salary $247,021 or more

Table 4: Reasonable amounts for domestic travel expenses – high-cost country centres accommodation expenses

Table 5a: Reasonable amounts for domestic travel expenses – employee truck driver’s meals (food and drink)

Table 6: Reasonable amounts for overseas travel expenses – employee’s annual salary $138,790 or less

Table 7: Reasonable amounts for overseas travel expenses – employee’s annual salary $138,791 to $247,020

Table 8: Reasonable amounts for overseas travel expenses – employee’s annual salary $247,021 or more

Allowances for 2022-23

The full document in PDF format: 2022-23 Determination TD 2022/10 (pdf).

The 2022-23 reasonable amount for overtime meal expenses is $33.25.

Reasonable amounts given for meals for employee truck drivers are as follows:

breakfast $26.80
lunch $30.60
dinner $52.75

2022-23 Domestic Travel

Table 1: Salary $133,450 and below

Table 2: Salary $133,451 to $237,520

Table 3: Salary $237,521 and above

2022-23 Overseas Travel

Table 6: Salary $133,450 and below

Table 7: Salary – $133,451 to $237,520

Table 8: Salary – $237,521 and above

Table 1: Reasonable amounts for domestic travel expenses – employee’s annual salary $133,450 and below

Table 2: Reasonable amounts for domestic travel expenses – employee’s annual salary $133,451 to $237,520

Table 3: Reasonable amounts for domestic travel expenses – employee’s annual salary $237,521 and above

Table 4: Reasonable amounts for domestic travel expenses – high-cost country centres accommodation expenses

Table 5a: Reasonable amounts for domestic travel expenses – employee truck driver’s meals (food and drink)

Table 6: Reasonable amounts for overseas travel expenses – employee’s annual salary $133,450 and below

Table 7: Reasonable amounts for overseas travel expenses – employee’s annual salary $133,451 to $237,520

Table 8: Reasonable amounts for overseas travel expenses – employee’s annual salary $237,521 and above

Allowances for 2021-22

The full document in PDF format: 2021-22 Determination TD 2021/6 (pdf).

The document displayed with links to each sections is set out below.

For the 2021-22 income year the reasonable amount for overtime meal expenses is $32.50

2021-22 Domestic Travel

Table 1: Salary $129,250 and below

Table 2: Salary $129,251 to $230,050

Table 3: Salary $230,051 and above

2021-22 Overseas Travel

Table 6: Salary $129,250 and below

Table 7: Salary – $129,251 to $230,050

Table 8: Salary – $230,051 and above

2021-22 Domestic Table 1: Employee’s annual salary – $129,250 and below

2021-22 Domestic Table 2: Employee’s annual salary – $129,251 to $230,050

2021-22 Domestic Table 3: Employee’s annual salary – $230,051 and above

2021-22 Domestic Table 4: High cost country centres – accommodation expenses

2021-22 Domestic Table 5: Tier 2 country centres

2021-22 Domestic Table 5a: Employee truck driver’s meals (food and drink)

2021-22 Overseas Table 6: Employee’s annual salary – $129,250 and below

2021-22 Overseas Table 7: Employee’s annual salary – $129,251 to $230,050

2021-22 Overseas Table 8: Employee’s annual salary – $230,051 and above

2021-22 Overseas Table 9: Table of countries

Allowances for 2020-21

Download full document in PDF format: 2020-21 Determination TD 2020/5 (pdf).

The document displayed with links to each section is set out below.

For the 2020-21 income year the reasonable amount for overtime meal expenses is $31.95 .

2020-21 Domestic Travel

Table 1: Salary $126,970 and below

Table 2: Salary $126,971 to $225,980

Table 3: Salary $225,981 and above

2020-21 Overseas Travel

Table 6: Salary $126,970 and below

Table 7: Salary – $126,971 to $225,980

Table 8: Salary – $225,981 and above

2020-21 Domestic Travel 2020-21 Domestic Table 1: Employee’s annual salary – $126,970 and below

2020-21 Domestic Table 2: Employee’s annual salary – $126,971 to $225,980

2020-21 Domestic Table 3: Employee’s annual salary – $225,981 and above

2020-21 Domestic Table 4: High cost country centres – accommodation expenses

2020-21 Domestic Table 5: Tier 2 country centres

2020-21 Domestic Table 5a: Employee truck driver’s meals (food and drink)

2020-21 Overseas Travel 2020-21 Overseas Table 6: Employee’s annual salary – $126,970 and below

2020-21 Overseas Table 7: Employee’s annual salary – $126,971 to $225,980

2020-21 Overseas Table 8: Employee’s annual salary – $225,981 and above

2020-21 Overseas Table 9: Table of countries

Allowances for 2019-20

The determination in sections:

Domestic Travel

Table 1: Employee’s annual salary – $124,480 and below

Table 2: Employee’s annual salary – $124,481 to $221,550

Table 3: Employee’s annual salary – $221,551 and above

Table 4: High cost country centres – accommodation expenses

Table 5a: Employee truck driver’s meals (food and drink)

Overseas Travel

Table 6: Employee’s annual salary – $124,480 and below

Table 7: Employee’s annual salary – $124,481 to $221,550

Table 8: Employee’s annual salary – $221,551 and above

For the 2019-20 income year the reasonable amount for overtime meal expenses is $31.25.

The reasonable travel and overtime meal allowance expense amounts commencing 1 July 2019 for the 2019-20 income year are contained in Tax Determination TD 2019/11 (issued 3 July 2019).

Download the PDF or view online here .

Domestic Travel Table 1: Employee’s annual salary – $124,480 and below

Domestic Travel Table 2: Employee’s annual salary – $124,481 to $221,550

Domestic Travel Table 3: Employee’s annual salary – $221,551 and above

Domestic Travel Table 4: High cost country centres – accommodation expenses

Domestic Travel Allowance High cost country centres – accommodation expenses

Domestic Travel Table 5: Tier 2 country centres

Domestic Travel Table 5a: Employee truck driver’s meals (food and drink)

Overseas Travel Table 6: Employee’s annual salary – $124,480 and below

Overseas Travel Table 7: Employee’s annual salary – $124,481 to $221,550

Overseas Travel Table 8: Employee’s annual salary – $221,551 and above

Overseas Travel Table 9: Table of countries

Substantiation and Compliance

Taxation Ruling TR 2004/6 explains the the way in which the expenses can be claimed within the substantiation rules, including the requirement to obtain written evidence and exemptions to that requirement.

Allowances which are ‘reasonable’ , i.e. comply with the Reasonable Allowance determination amounts and with TR 2004/6 are not required to be declared as income and are excluded from the expense substantiation requirements.

These substantiation rules only apply to employees. Non-employees must fully substantiate their travel expense claims. Expenses for non-working accompanying spouses are excluded.

Key points :

To be claimable as a tax deduction, and to be excluded from the expense substantiation requirements, travel and overtime meal allowances must:

be for work-related purposes; and
be supported by payments connected to the relevant expense
for travel allowance expenses, the employee must sleep away from home
if the amount claimed is more than the ‘reasonable’ amount set out in the Tax Determination, then the whole claim must be substantiated
employees can be required to verify the facts relied upon to claim a tax deduction and/or the exclusion from the substantiation requirements
an allowance conforming to the guidelines doesn’t need to be declared as income or claimed in the employee’s tax return, unless it has been itemised on the statement of earnings. Amounts of genuine reasonable allowances provided to employees(excludng overseas accommodation) are not required to be subjected to tax withholdings or itemised on an employee’s statement of earnings.
claims which don’t match the amount of the allowance need to be declared.

The Tax Office has issued guidance on their position.

[11 August 2021] Taxation Ruling TR 2021/4 reviews the tax treatment of accommodation and food and drink expenses, and provides 14 examples which distinguish non-deductible living expenses from deductible travelling on work expenses. FBT implications for the ‘otherwise deductible’ rule and travel and LAFHA allowances are also considered.

[11 August 2021] Practical Compliance Guideline PCG 2021/3 (which finalises draft PCG 2021/D1 ) provides the ATO’s compliance approach to determining if allowances or benefits provided to an employee are travelling on work, or living at a location.

For FBT purposes an employee is deemed to be travelling on work if they are away for no more than 21 consecutive days, and fewer than 90 days in the same work location in a FBT year.

See also: Travel between home and work and LAFHA Living Away From Home

The issue of annual determination TD 2017/19 for the 2017-18 year marked a tightening of the Tax Office’s interpretation of the necessary conditions for the relief of allowances from the substantiation rules, which would otherwise require full documentary evidence (e.g. receipts) and travel records. (900-50(1))

For a full discussion of the issues, this article from Bantacs is recommended: Reasonable Allowance Concessions Effectively Abolished By The ATO .

Prior to 2017-18

In summary: Prior to 2017-18 the Tax Office rulings stated the general position that provided a travel allowance was ‘reasonable’ (i.e. followed the ATO-determined amounts) then substantiation with written evidence was not required. “In appropriate cases”, however employees may have been required to show how their claim was calculated and that the expense was actually incurred.

What changed

The relevant wording was changed in the 2017-18 determination to now require that more specific additional evidence be available if requested. This additional evidence is not prescribed in the tax rules, but represents a higher administrative standard being applied by the Tax Office.

The required evidence includes being able to show:

you spent the money on work duties (e.g. away from home overnight for work)
how the claim was worked out (e.g. diary record)
you spent the money yourself (e.g. credit card statement, banking records)
you were not reimbursed (e.g. letter from employer)

Other requirements highlighted by the Bantacs article include:

a representative sample of receipts may be required to show that a reasonable allowance (or part of it) has actually been spent (TD 2017/19 para 20)
hostels or caravan parks are not considered eligible for the accommodation component of a reasonable allowance because they are not the right kind of “commercial establishment”, examples of which are hotels, motels and serviced apartments (para 14)
reasonable amounts for meals can only be for meals within the specific hours of travel (not days), and can only be for breakfast, lunch or dinner (para 15), and therefore could exclude, for example, meals taken during a period of night work.

Tip : The reasonable amount for incidentals still applies in full to each day of travel covered by the allowance, without the need to apportion for any part day travel on the first and last day. (para 16).

Alternative: business travel expense claims

With the burden of proof on ‘reasonable allowance’ claims potentially quite high, an alternative is to opt for a travel expense claim made out under the general substantiation rules for employees, or under the general rules for deductibility for businesses.

The kind of business travel expenses referred to here could include:

Airfares Accommodation Meals Car hire Incidentals (e.g. taxi fares)

The Tax Office has an article describing how to meet the requirements for claiming travel expenses as a tax deduction. See: Claiming a tax deduction for business travel expenses

Travel diary

A travel diary is required by sole traders and partners for overnight expenses and recommended for everyone else (including companies and trusts).

It is important to exclude any private portion of travelling expense which is non-deductible, or if paid on behalf of an employee gives rise to an FBT liability.

For example the expenses of a non-business associate (e.g. spouse), the cost of private activities such as sight-seeing, and accommodation and associated expenses for the non-business portion of a trip.

Airfares to and from a business travel destination would not need to be apportioned if the private element of the trip such as sightseeing was only incidental to the main purpose and time spent.

This is an example of a travel diary for Rebecca who owns a business as a sole trader landscape gardener. (courtesy of ATO Tax Time Fact Sheet )

Allowances for 2018-19

For the 2018-19 income year the reasonable amount for overtime meal allowance expenses is $30.60 .

The meal-by-meal amounts for employee long distance truck drivers are $24.70, $28.15 and $48.60 per day for breakfast, lunch and dinner respectively.

This determination includes ATO reasonable allowances for

(a) overtime meal expenses – for food and drink when working overtime (b) domestic travel expenses – for accommodation, food and drink, and incidentals when travelling away from home overnight for work (particular reasonable amounts are given for employee truck drivers, office holders covered by the Remuneration Tribunal and Federal Members of Parliament) (c) overseas travel expenses – for food and drink, and incidentals when travelling overseas for work

Allowances for 2017-18

An addendum was issued modifying paragraphs 23 to 30 of determination TD 2017/19 setting out the new reasonable amounts, and consolidated into TD 2017/19 as linked above. For reference purposes, the first-released version of TD 2017/19 issued 3 July 2017 is linked here .

2017-18 Addendum: ATO reinstates the meal-by-meal approach for truck drivers’ travel expense claims

On 27 October 2017 the ATO announced the reinstatement of the meal-by-meal approach for truck drivers who claim domestic travel expenses for meals. The following new reasonable amounts have now been included in an updated version of the current ruling (see on page 7)：

For the 2017-18 income year the reasonable amount for overtime meal allowance expenses is $30.05 .

This determination contains ATO reasonable allowances for:

overtime meals
domestic travel
employee truck drivers
overseas travel
$24.25 for breakfast
$27.65 for lunch
$47.70 for dinner

The amount for each meal is separate and can’t be combined into a single daily amount or moved from one meal to another.

See: ATO media release

Allowances for 2016-17

For the 2016-17 income year the reasonable amount for overtime meal allowance expenses is $29.40 .

Allowances for 2015-16

Download the PDF or view online here . For the 2015-16 income year the reasonable amount for overtime meal allowance expenses is $ 28.80 .

Allowances for 2014-15

Allowances for 2013-14

The reasonable travel and overtime meal allowance expense amounts for the 2013-14 income year are contained in Tax Determination TD 2013/16 . For the 2013-14 income year the reasonable amount for overtime meal allowance expenses is $ 27.70 .

Allowances for 2012-13

The reasonable travel and overtime meal allowance expense amounts for the 2012-13 income year are contained in Tax Determination TD 2012/17 . For the 2012-13 income year the reasonable amount for overtime meal allowance expenses is $27.10

Allowances for 2011-12

The reasonable travel and overtime meal allowance expense amounts for the 2011-12 income year are contained in Tax Determination TD 2011/017 . For the 2011-12 income year the reasonable amount for overtime meal allowance expenses is $26.45

This page was last modified 2023-06-28

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Expenses and employee benefits

Expenses and benefits: travel and subsistence

As an employer paying your employees’ travel costs, you have certain tax, National Insurance and reporting obligations.

This includes costs for:

providing travel
reimbursing travel
accommodation (if your employee needs to stay away overnight)
meals and other ‘subsistence’ while travelling

Subsistence includes meals and any other necessary costs of travelling, for example parking charges, tolls, congestion charges or business phone calls.

There are different rules for reporting expenses relating to public transport .

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Managing business travel expenses

Guide to hmrc subsistence allowance & expenses, what is a subsistence allowance, how do hmrc subsistence rates work.

The cost of food or drink must be incurred after the business trip has started
The trip must be beyond their usual commute and be done as part of official business.
The journey must take the employee away from their normal place of work for 5 hours or more.

Is meal allowance taxable?

a meal or beverage is not purchased
the meal does not constitute additional expenditure
the “staying with friends or relatives allowance” is claimed
meals have been taken at home
meals are provided during a training course, conference or similar activity
meals are provided on the train or plane and included in the ticket cost

What are the HMRC domestic subsistence allowance rates?

£5 for travel of 5 hours or more (£10 supplement if travel is ongoing at 8pm)
£10 for travel of 10 hours or more (£10 supplement if travel is ongoing at 8pm)
£25 for travel of 15 hours or more (and ongoing at 8pm)

Overnight accommodation rate UK

Meal allowance rates overseas, how does a business report subsistence allowance spend.

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7th Pay Commission TA DA – Travelling and Daily Allowance – Recommendation and decision by Govt

Field Allowance and Transport Allowance during absence period due to Covid-19 lockdown

7th Pay Commission TA DA – List of Allowances Covered while on Travel and cadre-wise eligibility – Committee’s recommendation and Government approval.

7th Pay Commission TA DA – Allowances allowed relating to Travel.

7th Pay Commission TA DA – Travelling and Daily Allowance are payable to Government Employees who are on official tour subject to certain conditions.

The analysis and recommendations of 7th Pay Commission as far as this reimbursement is concerned is as follows.

Daily Allowance

8.15.12 Daily allowance is meant to cover living expenses when employees travel out of their headquarters for work. Presently it is in the form of reimbursement of staying accommodation expenses, travelling charges (for travel within the city) and food bills, payable at the following rates:

For journeys on foot, undertaken in organizations like FSI, Survey of India, GSI, etc. for data collection purposes, an additional allowance of ₹7.5 per km travelled on foot shall be payable.

8.15.13 The existing dispensation is different for Railway employees who are paid a flat sum because they are currently not entitled to stay in any accommodation other than Railway rest houses. The lump-sum rates for Railway personnel are as follows:

8.15.14 Representations received regarding this allowance primarily deal with the reimbursement procedure, as it is claimed that getting hotel bills (in small towns) and food bills is not always practical.

Analysis and Recommendations

8.15.15 The Commission considered the present model of this allowance, followed both in Railways and in other ministries. It is proposed to adopt the best from both of them so that the administration of the allowance can be simplified. Accordingly the following is recommended :

a) Reimbursement of staying accommodation charges ( ₹ per day)

For levels 8 and below, the amount of claim (up to the ceiling) may be paid without production of vouchers against self-certified claim only. The self-certified claim should clearly indicate the period of stay, name of dwelling, etc. The ceiling for reimbursement will further rise by 25 percent whenever DA increases by 50 percent. Additionally, it is also provided that for stay in Class ‘X’ cities, the ceiling for all employees up to Level 8 would be ₹1,000 per day, but it will only be in the form of reimbursement upon production of relevant vouchers.

b) Reimbursement of travelling charges

Similar to Reimbursement of staying accommodation charges, for levels 8 and below, the claim (up to the ceiling) should be paid without production of vouchers against self- certified claim only. The self-certified claim should clearly indicate the period of travel, vehicle number, etc. The ceiling for levels 11 and below will further rise by 25 percent whenever DA increases by 50 percent. The rate of allowance for foot journeys shall be enhanced from the current rate of ₹7.5 per km to ₹12 per km travelled on foot. This rate also shall further rise by 25 percent whenever DA increases by 50 percent. c) There will be no separate reimbursement of food bills. Instead, the lump sum amount payable will be as per Table 1 below and, depending on the length of absence from headquarters, would be regulated as per Table 2 below. Since the concept of reimbursement has been done away with, no vouchers will be required. This methodology is in line with that followed by Indian Railways at present (with suitable enhancement of rates). i. Lump sum amount payable

( ₹ per day)

The Lump sum amount will increase by 25 percent whenever DA increases by 50 percent.

ii. Timing restrictions

Absence from Head Quarter will be reckoned from midnight to midnight and will be calculated on a per day basis.

8.15.16 All the above provisions will apply to Railway personnel also .

Daily Allowance on Foreign Travel

8.15.17 This allowance is granted to employees when they undertake foreign travel. The rate of the allowance varies from $60 to $100 per day, depending upon the country involved. No demands have been received regarding this allowance.

8.15.18 Ministry of External Affairs and Ministry of Finance decide the rate of this allowance from time to time. Hence, the rates may be kept unchanged .

M ileage Allowance for Journeys by Road

8.15.35 It is more in the nature of entitlement for road journeys performed by different levels of employees. No demands have been received for any change.

8.15.36 The Commission is of the view that present provisions are adequate. Hence, status quo may be maintained except at places where no specific rates have been prescribed. There the rates should be enhanced by 50 percent. Accordingly, the following is recommended :

8.15.37 At places where no specific rates have been prescribed, the rate per km will go up by 25 percent each time DA rises by 50 percent.

Travelling Allowance

8.15.55 This allowance is in the nature of travel entitlements for different ranks of government employees. No demands have been received regarding this allowance.

8.15.56 The Commission opines that the present provisions are adequate. Hence, status quo is recommended with the present system of differentiation based on Grade Pay duly substituted by the Levels of the Pay Matrix:

8.15.57 It is suggested that Indian Railways reconsider its position regarding air travel to its employees, in light of the possible savings in terms of cost and man-hours, particularly after the pay revision as recommended by the Commission. The fact that additional seats will be released in trains for the public will be an added advantage. 7th Pay Commission TA DA – Travelling and Daily Allowance – Recommendation and decision by Govt

Here are the decisions of Govt with respect to Travelling Allowance and Daily Allowance which are effective from 1st July 2017

Daily Allowance:

Level 6 to 8 of Pay Matrix to be entitled for Air Travel

2. Travelling Charges for Level -12 – 13 revised from ‘Non-AC Taxi charges up to 50 km to ‘AC taxi charges upto 50 Kms.’ and for level 14 and above to be revised from ‘AC Taxi charges up to 50 km’ to ‘AC taxi charges as per actual expenditure commensurate with official engagements’.Existing system of Daily allowance in the Ministry of Railways to continue.

Accepted as such.

Travelling Allowance:

Modifications accepted by the Government:

Level 6 to 8 of Pay Matrix to be entitled for Air travel. Level 5 A of Defence Forces to be clubbed with Level 6 for travelling entitlements. Existing system to continue in Ministry of Railways.

Mileage Allowance for journeys by road:

Click here to check the decision of Govt on all 197 Allowances applicable to Central Government Employees, Railway Employees and Defence Personnel

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Central administration.

Information
Reimbursement amounts and scope

Daily allowance

Business travellers receive a daily allowance per calendar day as compensation for extra expenses for meals during the business trip. A daily allowance is not paid for trips at the place of work or residence. The amount of the daily allowance is based on the length of time away from home and on the focus of the business traveller's task.

The amount of daily allowance in Germany:

Per full calendar day absent EUR 28
For single-day trips and absent for over 8 hours EUR 14
For trips lasting several days, for the days of departure and return , if the traveller has accommodation away from home, each EUR 14

If the business traveller receives the option of free board, 20% (5,60 EUR) for breakfast and 40% each for lunch and dinner (11,20 EUR) is deducted from the daily allowance. For full board, there will be no remaining daily allowance. This also applies if the boarding fees are included in the refundable travel expenses, overnight allowance or additional expenses (such as meals during a flight).

If the business trip lasts longer than 14 days in the same external business location, the daily allowance is reduced as from day 15 by 50%.

The amount of daily allowance abroad:

Please see the daily allowance 2024 for information on the amount of daily allowance abroad per calendar day in the event of 24 hr absence.

For single-day trips and absent for over 8 hours 80 % of the amounts stated in the list.

For trips lasting several days, for the days of departure and return , if the traveller has accommodation away from home, each 80% of the amounts stated in the list.

For regions or countries that are not included in the list mentioned above, the daily allowance abroad from Luxembourg is decisive. If lunches are had in a canteen (such as foreign university canteens), the daily allowance abroad amounts to 80% of the amounts stated in the list.

If the stay abroad lasts more than 14 days, not including the days travelling there and back, then 10% is deducted from the daily allowance abroad.

How to calculate Germany’s per diem rates in 2023 / 2024

Published on November 28, 2023

Germany is known worldwide for its cultural commitment to efficiency and attention to detail. For the most part, these ideas have served the nation well - it boasts the fourth-largest economy in the world; first in Europe.

But in some cases, efficiency and precision butt heads against one another. And business trips are one of those cases.

Employees in German companies have fixed per diem rates to cover travel expenses . These are set by the government, which in theory makes things more efficient. Companies don’t need to create their own policies - they just follow the rules.

But there’s a problem: the rules are fairly complex, and lots of businesses struggle to follow them.

Efficiency, meet precision.

In this article, we’re going to give you a clear overview of the law for business travel within Germany and abroad.

Please note: This article contains per diem rates and rules for 2024 (in place since 2021). You can find applicable flat rates for the most common destinations further down in this article.

What are per diem rates?

This will probably be clear to most readers, but it’s important that we set out just what we’re talking about. While travelling for work, certain costs are incurred by the employee and should be reimbursed by the company .

Some costs are expected to be covered your per diem, and therefore don’t need to be claimed separately. You’ll simply want to keep these costs below the daily per diem rate you’ve been allocated.

Other costs aren’t covered by your per diem, which means you should include them in an expense claim .

Covered by per diem

These will fall under the fixed rates below, and should not be claimed separately .

Meals purchased while travelling for work

The law (see below) only talks about meals. Some employees will choose to include other small costs (metro tickets or stationery for example), rather than seeking reimbursement for these minor items.

Not covered by per diem

These expenses should still be reimbursed by the company as part of a separate expense claim .

Transport to and from the airport or meetings

Accommodation if staying overnight

Meals and other costs incurred while meeting clients

Keep this distinction in mind when travelling. Now, let’s look at the specific rules for per diems.

The law around German per diem rates

The applicable law in this case is the statute on income tax - more precisely section 9, paragraph 4(a) (link in German). This covers meals for travelling workers, and essentially states the following:

If the employee works outside their home and first place of work (external occupational activity), a lump sum for meals is paid in compensation for the additional expenses.

[The actual rates paid are in the next section of this post.]

Since it would be time-consuming, complicated, and potentially unfair to have individual businesses set their own rates, the government does it for them. So as long as the rates are easy to understand and make sense, this is a good thing.

It also prevents the need for itemized expense claims - something employees generally hate . You don’t need to submit every receipt and take hours filling in expense reports. If you travel for X number of days, you receive Y in reimbursement.

The rates depend on travel duration and destination (see table below).

Note : You can’t claim these rates twice.

Two fee rates for all business trips

At the end of each year, the Federal Ministry of Finance publishes the applicable meal allowances for the following year. For the first time in many years, the flat rate allowances for business travel were updated in 2020.

Although the lump sums have changed for some countries, the basic principle remains the same. Since January 1, 2014, only two meal per diems apply, both within Germany and abroad. These are based on the travel duration:

Small meal allowance : for business trips lasting more than eight hours and less than 24 hours. This rate also applies to arrival and departure days of multi-day business trips.

Large meal allowance : For business trips that last longer than 24 hours. This rate is applied to every single day.

Important note : The expense calculation is based on full calendar days . In fact, to claim a full day, the traveller actually has to be away from home (or the office) from 0:00 to 24:00.

Anyone who went on a business trip before 2014 will find that a few things have changed with the reform of travel expenses. The most important change: business trips with a duration of less than eight hours can no longer be billed .

Current per diem rates in Germany

The rates for business travel in Germany changed slightly in 2020, for the first time in years.

Even with the 2014 reform, only the categories were changed, but not the amount of the lump sums. So this 2020 update is worth noting.

Today, these are the lump sum amounts for German per diems :

For business trips with a duration of less than 24 but more than eight hours, €14 can be noted in the travel expense report.

With a minimum duration of 24 hours, €28 euros can be claimed for each full day, and €14 euros for arrival and departure days (which will obviously be less than 24 hours).

The overnight flat rate is €20 - to be used for accommodation. In reality, accommodation will usually be covered fully by the employer , so travelling employees won’t claim this cost. But in cases where accommodation is not covered - for freelancers, for instance - this cost can usually be claimed through an individual’s income taxes.

Why is the overnight lump sum so low? One theory is that this should prevent fraudulent charges if business travellers choose to stay with friends or relatives.

You can find an example calculation in our free travel expense report template .

Exceptions to these rules

No good rules or regulations would be complete without exceptions. Thankfully, in this case they’re simple and quite brief.

First, the food allowance will only be paid in full if the business traveller actually pays for their own food . If the employer pays for meals on the trip, the rate will be reduced accordingly:

If breakfast is included (in the hotel fee, for example), 20 percent of the flat rate will be deducted for the day.

If lunch or dinner is provided by the employer, 40 percent of the fee will be removed.

For shorter business trips, it should be noted that meals provided by the employer are subject to income tax. Here are the so-called non-monetary benefits which must be taken into account in at tax time :

For breakfast, the value is currently €2.00.

For a lunch or dinner, €3.80 will be charged.

Foreign packages for business travel

As already mentioned, the categories for food allowances for business trips in Germany and abroad apply equally. But the rates of reimbursement may differ significantly depending on the country .

While an overnight stay in London, for example, costs €163, in Rome the value is only €150. For a day in Tokyo, the package is €50, but in Athens it's only €40.

The list also includes prices in different regions in the same country. For example, a stay in Miami is more expensive than in Los Angeles.

Unlike the lump sums for business travel within Germany, the rates for foreign destinations are frequently adjusted .

To help, we put together a list with the most frequented destinations and their respective meal allowances in this article. (at the bottom).

You can find the complete list here .

German per diems: clear as mud

Hopefully this article has helped to clear up some of the confusion around the German per diem system. In some ways it all seems unnecessarily complex, but once you have the basic concepts it should be fairly simple to repeat regularly.

The key parts to remember are the specific rates you can claim for each day, and that you can’t claim costs that have already been covered by your employer .

To help you manage your next business trip and keep on top of all spending (per diem or not), download our free Expense Report Template below.

Travel and expense policy best practices: 8 tips

HMRC travel expenses: guidelines for business travel & tax in the UK

How business travel is changing in 2019

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Daily Allowance Travel | Daily Allowance Policy,Rates | Daily Allowance Calculation | Daily Allowance taxable or not 7th Pay Commission

Table of Contents

Daily Allowance Travel For Govt Employee| Daily Allowance Policy| Daily Allowance Rates | Daily Allowance Calculation | Daily Allowance taxable or not Under 7 th Pay Commission

As per the government norms, a daily allowance is a uniform allowance that shall be granted per day of absence from the headquarters. This shall only be provided to the government employees who are absent from the headquarters for a specific period of time.

Also, the traveling has to be beyond 25 kilometers (from the headquarters) to avail this benefit.

Daily Allowance Eligibility

Since daily allowance is the cost that would reimburse the employee if he has gone to stay outside, the only eligibility that you need is to be a government employee who is working away from his hometown.

To avail the DA, you must provide a self certified claim. Your claim should indicate your period of stay.

Daily Allowance Rates

The rates of the daily allowance vary widely as per the Grade Pay. These usually increase with the class of cities that the person lives in, with the Class A cities having the highest Daily Allowances since the traveling costs in these places are higher.

Daily Allowance Travel

At present the traveling charges are being calculated as per the journeys on foot, taxis, food bills and accommodation/ guest houses.

Daily Allowance Calculation

If you are on tour or travel, then the daily allowance will be calculated per the number of days of absence from the office – from midnight to midnight.

If you are absent for more than 6 hours but less than 12 hours from your office then you are eligible for 70% daily allowance.

In case of an absence of 12 or more hours from the office, you are liable to get full daily allowance.

If you are free boarding and lodging you will get 25% of the DA. If you are lodging alone then you will get 50% of the DA. If you are accommodated in the office building you will get 75% DA.

There’s also a mileage allowance, which is given to meet the cost of traveling during office hours for a job that requires one to travel. If a government employee takes a route which isn’t the shortest, but is actually cheaper than the shortest, then the amount spent on journeying this route will the amount of DA that will be provided.

Daily Allowance taxable or not

According to a section 10 (14) under the government norms, Daily allowance is fully exempted from tax. This means that the amount that you receive as the daily allowance shall not be liable to go through tax.

So here are the things that we learnt about Daily Allowance:

Airlines are ordered to give full refunds instead of vouchers and to stop hiding fees

Travelers and their luggage in a terminal at Los Angeles International Airport in August 2023. Mario Tama/Getty Images hide caption

Travelers and their luggage in a terminal at Los Angeles International Airport in August 2023.

WASHINGTON — In an effort to crack down on airlines that charge passengers steep fees to check bags and change flights, the U.S. Department of Transportation has announced new regulations aimed at expanding consumer protections .

One of the final rules announced Wednesday requires airlines to show the full price of travel before passengers pay for their tickets. The other will force airlines to provide prompt cash refunds when flights are canceled or significantly changed.

"Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them - without having to ask," said Transportation Secretary Pete Buttigieg in a statement announcing the new rules.

Taking on junk fees is popular. But can it win Biden more voters?

Surprise junk fees have become a large and growing source of revenue for airlines in recent years, according to the DOT.

"Today's announcements will require airlines to both provide passengers better information about costs before ticket purchase, and promptly provide cash refunds to passengers when they are owed — not only saving passengers time and money, but also preventing headaches," Buttigieg said.

The airline industry is unlikely to welcome the new rules. At a hearing on the proposed fee rule in March 2023, an industry lobbying group representing American, Delta and United said it would be too difficult for airlines to disclose their charges more clearly.

"The amount of unwanted and unneeded information forced upon passengers" by the new policy would only cause "confusion and frustration," warned Doug Mullen, the deputy general counsel at Airlines for America . "Very few, if any, need or want this information, and especially when they are initially trying to understand schedule and fare options."

But the DOT insists its new rule will give consumers the information they need to better understand the true costs of air travel.

Transportation Department cracks down on airline 'junk fees'

"I believe this is to the benefit of the sector as a whole," Buttigieg said in an interview with NPR's Morning Edition , because passengers will have "more confidence in the aviation sector."

The new rules require airlines to disclose all baggage, change, and cancellation fees, and to share that information with third-party booking sites and travel agents.

The regulation also prohibits bait-and-switch tactics, the DOT says, that disguise the true cost of flights by advertising a low base fare that does not include all mandatory fees.

"This is really about making sure that we create a better experience for passengers, and a stronger aviation sector in the United States," Buttigieg said in the NPR interview.

IMAGES

FREE 31+ Travel Forms in PDF
FREE 9+ Sample Travel Allowance Forms in PDF
17. Travelling Allowance and Daily Allowance Rules
FREE 9+ Sample Travel Allowance Forms in PDF
FREE 9+ Sample Travel Allowance Forms in PDF
ATO Reasonable Travel Allowances 2021

COMMENTS

Per diem rates
Per diem rates. Rates are set by fiscal year, effective Oct. 1 each year. Find current rates in the continental United States, or CONUS rates, by searching below with city and state or ZIP code, or by clicking on the map, or use the new per diem tool to calculate trip allowances.
Publication 463 (2023), Travel, Gift, and Car Expenses
It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. The set amount varies depending on where and when you travel. In this publication, "standard meal allowance" refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance. If ...
Understanding business travel deductions
Tax Tip 2023-15, February 7, 2023 — Whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. The IRS has information to help all business travelers properly claim these valuable deductions. IRS Tax Tip 2023-15, February 7, 2023 Whether someone travels for work once a year ...
PDF Per Diem Rates
Per diem is an allowance paid to your employees for lodging, meals, and incidental expenses incurred when travelling. This allowance is in lieu of paying their actual travel expenses. Return to top 2. What is the federal per diem rate for my area? Publication 1542, Per Diem Rates provides the rates for all continental U.S. areas. Return to top 3.
Travel allowance: A Comprehensive Guide for Employees
Travel allowance is a type of compensation employers provide to cover employee travel expenses incurred when traveling for business purposes. It helps with employee travel costs, such as transportation, lodging, meals, and other incidentals while on the job. Depending on the company policy, travel allowance may be given in cash or as reimbursed ...
IRS Announces 2023-2024 Per Diem Rates For Taxpayers Who Travel For
The new numbers are effective as of October 1, 2023, and are to be used for per diem allowances paid to any employee on or after October 1, 2023, for travel away from home. The new rates include ...
IRS Announces Special Per Diem Rates for Travel Away From Home
Beginning October 1, 2021, the high-low per diem rate that can be used for lodging, meals, and incidental expenses increases to $296 (from $292) for travel to high-cost locations and increases to $202 (from $198) for travel to other locations. The high-low M&IE rates increase to $74 (from $71) for travel to high-cost locations and to $64 (from ...
IRS updates business travel per-diem rates
IRS updates business travel per-diem rates. By Paul Bonner. September 3, 2021. TOPICS. The IRS issued its annual update Friday of special per-diem rates for substantiating ordinary and necessary business expenses incurred while traveling away from home ( Notice 2021-52 ). The new rates are in effect from Oct. 1, 2021, to Sept. 30, 2022.
What Is a Travel Allowance? Definitions and Insights
Daily Travel Allowance Also called a per diem, a daily travel allowance is an amount used for each day of travel and can be used for lodging, transportation, meals, and other travel expenses. Typically, a traveler will reconcile the per diem by submitting an expense report and receipts.
Travel allowances
Travel allowance is a payment made to an employee to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight in the course of their duties. Allowances folded into your employee's salary or wages are taxed as salary and wages and tax has to be withheld, unless an exception applies. You ...
Travel Allowances, Mileage and Per Diem Rates
If meals are provided to the traveler on the first or last day of travel, the 75% calculation is taken first and then the full meal rate is deducted. For example, if dinner is provided on the first day of travel for a location with a $65 per diem rate the calculation will be $65 x 75% = $48.75 - $26 Dinner = $22.75.
Per diem
Per diem is a daily allowance given to an employee to cover business travel expenses such as lodging, meals and incidentals while traveling for the company. Learn more about per diem.
Germany per diem rates and managing employees travel expenses
When employees are traveling on business within Germany the costs of subsistence (drinks and meals) is typically reimbursed according to the applicable per diem rates which currently are: - between 8-24 hours, 14 EUR. - for a full 24 hours day, 28 EUR. For the first and last day of travel, the applicable per diem rate is always 14 EUR.
Topic no. 511, Business travel expenses
Topic no. 511, Business travel expenses. Travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. You can't deduct expenses that are lavish or extravagant, or that are for personal purposes. You're traveling away from home if your duties require you to be away from the general ...
What is a business travel allowance?
What is a business travel allowance? Organizations establish business travel allowances to cover expenses incurred by staff during their corporate trips. Typically these reimbursements are made to cover the cost of hotel rooms, meals, and transportation. However, policies should extend to include anything required for the employee to conduct ...
ATO Reasonable Travel Allowances 2024
The amount for each meal is separate and can't be combined into a single daily amount or moved from one meal to another. See: ATO media release. Allowances for 2016-17. The reasonable travel and overtime meal allowance expense amounts commencing 1 July 2016 for the 2016-17 income year are contained in Tax Determination TD 2016/13.
Travel Reimbursements
Total Daily Maximum Allowance Up to $46 Up to $59 **As noted in HR Manual section 2203 - Allowances and Travel Reimbursements, receipts are not required to claim meal and incidental expenses up to the maximum allowable reimbursement rates specified above. Receipts for meals must be maintained by the employee as substantiation that the amount ...
Expenses and benefits: travel and subsistence
This includes costs for: providing travel. reimbursing travel. accommodation (if your employee needs to stay away overnight) meals and other 'subsistence' while travelling. Subsistence ...
Guide to HMRC Subsistence Allowance & Expenses
the official HMRC meal allowance rates for UK business travel. are: £5 for travel of 5 hours or more (£10 supplement if travel is ongoing at 8pm) £10 for travel of 10 hours or more (£10 supplement if travel is ongoing at 8pm) £25 for travel of 15 hours or more (and ongoing at 8pm) Many companies will have higher per diem rates for C-level ...
7th Pay Commission TA DA
The analysis and recommendations of 7th Pay Commission as far as this reimbursement is concerned is as follows. Daily Allowance. 8.15.12 Daily allowance is meant to cover living expenses when employees travel out of their headquarters for work. Presently it is in the form of reimbursement of staying accommodation expenses, travelling charges ...
Daily allowance
A daily allowance is not paid for trips at the place of work or residence. The amount of the daily allowance is based on the length of time away from home and on the focus of the business traveller's task. The amount of daily allowance in Germany: Per full calendar day absent EUR 28. For single-day trips and absent for over 8 hours EUR 14.
Spendesk
These are based on the travel duration: Small meal allowance: for business trips lasting more than eight hours and less than 24 hours. This rate also applies to arrival and departure days of multi-day business trips. Large meal allowance: For business trips that last longer than 24 hours. This rate is applied to every single day.
Daily Allowance Travel
Daily Allowance Travel: At present the traveling charges are being calculated as per the journeys on foot, taxis, food bills and accommodation/ guest houses. 5: Daily Allowance Calculation: If you are on tour or travel, then the daily allowance will be calculated per the number of days of absence from the office - from midnight to midnight.
Airlines ordered to give full refunds instead of vouchers and stop
The new rules require airlines to disclose all baggage, change, and cancellation fees, and to share that information with third-party booking sites and travel agents.

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Travel and Expense

What Is a Travel Allowance?

Types of Travel Allowance

Fixed Travel Allowance

Daily Travel Allowance

Travel Reimbursement

Mileage Allowance

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Developing Travel Allowance Policies and Guidelines

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Germany per diem rates and how to manage employees travel expenses

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Topic no. 511, Business travel expenses

ATO Reasonable Travel Allowances

Substantiation in practice

Distinguishing Travelling, Living Away and Accounting for Fringe Benefits

Allowances for 2023-24

2023-24 Domestic Travel

2023-24 Overseas Travel

Table 1：Reasonable amounts for domestic travel expenses – employee’s annual salary $138,790 or less

Table 2: Reasonable amounts for domestic travel expenses – employee’s annual salary $138,791 to $247,020

Table 3: Reasonable amounts for domestic travel expenses – employee’s annual salary $247,021 or more

Table 4: Reasonable amounts for domestic travel expenses – high-cost country centres accommodation expenses

Table 5a: Reasonable amounts for domestic travel expenses – employee truck driver’s meals (food and drink)

Table 6: Reasonable amounts for overseas travel expenses – employee’s annual salary $138,790 or less

Table 7: Reasonable amounts for overseas travel expenses – employee’s annual salary $138,791 to $247,020

Table 8: Reasonable amounts for overseas travel expenses – employee’s annual salary $247,021 or more

Allowances for 2022-23

2022-23 Domestic Travel

2022-23 Overseas Travel

Table 2: Reasonable amounts for domestic travel expenses – employee’s annual salary $133,451 to $237,520

Table 3: Reasonable amounts for domestic travel expenses – employee’s annual salary $237,521 and above

Table 4: Reasonable amounts for domestic travel expenses – high-cost country centres accommodation expenses

Table 5a: Reasonable amounts for domestic travel expenses – employee truck driver’s meals (food and drink)

Legal Experts Weigh-in on Labor Department’s Upcoming Worker Classification Rule