What are travel allowances?
When you travel for work, your employer may choose to pay a tax-free travel expense to cover expenses associated with lodging, meals, and other necessities according to fixed rates. It should not be confused with mileage deductions, which are not paid.
Certain conditions must be met before you can receive tax-free travel allowance. If the conditions are not met, taxes must be paid on the travel allowance.
You can handle electronic invoices automatically with Acubiz
Whether you are an employee or a part of the finance department, it should be easy to register and manage diets according to national rates.
Conditions for travel allowance
Before you are entitled to tax-free travel allowances, the trip must last at least 24 hours and be a documented business trip. In addition, it is a prerequisite that the employee has a temporary workplace, a usual residence, and stays overnight away from home.
Skattestyrelsen (Danish Tax Authority) looks particularly at two factors determining whether it is a trip: distance and work. You can learn more about these below.
Daily allowance rates
|Rates per day||2022||2023|
|Accomodation||DKK 231||DKK 238|
|Food and petty acquisitions for other salary earners||DKK 539||DKK 555|
Food and incidentals for other employees
Who cannot receive travel allowance?
Want to know more?
If you need further information, we recommend that you read more about allowances on SKAT’s website. 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.