Germany allowance rules
German employers can provide their employees with tax-free daily allowances, as compensation for the increased living expenses, when on a business trip. The tax-free allowances are granted under specific conditions, ensuring that the work-trip is fulfilling the requirements for tax-free allowances.
The per diem allowance is set out from different criteria, such as the location of the trip. If the business travel is domestic in Germany, the rates are as stated in the table below:
Duration: | Max. tax-free daily-allowance (2024) |
Under 8 hours | 0 (No allowance) |
Between 8 to 24 hours | € 14 daily |
Note: Table for daily business trips (domestic)
Multi-day trips (Domestic)
Duration: | Max. tax-free daily-allowance (2024) |
Full day (24 hours) | €28 |
Day of arrival/departure | €14 |
Overnight stay | €20 |
Note: The maximum daily allowances in Germany was set in 2020, and has not been changed since.
Different regulations apply for meal deductions, if they are provided by the employer or the host, on business trips. Please see table below, for meal deductions:
Deductions – Meals provided | Maximum tax-free allowance (% of the applicable rate) |
Breakfast | 20% (€5.60) |
Lunch | 40% (€11.20) |
Dinner | 40% (€11.20) |
Foreign business travels
When the employee has to go on an international business trip, the maximum tax-free amounts are not set as a standard amount, for all countries. The maximum amount is specifically set for each country/region. Furthermore the amount is specified by the duration of the business trip. The different provisions can be found here:
Deductions – Meals provided | Maximum tax-free allowance (% of the applicable rate) |
Breakfast | 20% (€5.60) |
Lunch | 40% (€11.20) |
Dinner | 40% (€11.20) |
Documentation and Payment
Employers are responsible for ensuring all conditions for tax-free travel allowances are met and must maintain documentation for the purpose of the trip, the number of business travel days, and the calculation of the allowance.
Want to know more?
If you need further information, we recommend that you read more about allowances on the German Travel Expenses Act. If you are looking for a system that can handle travel allowances for your employees, Acubiz calculate allowance based on the current national rates which we make sure to update automatically.