What is a travel deduction?
You can claim a travel deduction on your taxes if your employer does not cover travel expenses on a business trip.
If your employer does not cover the expenses, you can get them covered as a tax deduction. Deductions for travel can be obtained for hotel stays and restaurant visits or if you need a coffee on the go (and other minor expenses).
You can have a complete overview of your travel expenses with Acubiz
What is the difference between a travel deduction and a tax-free travel allowance?
Your employer may choose to pay a tax-free travel allowance for your travel expenses on a business trip that lasts at least 24 hours and where you cannot stay overnight at home.
The tax-free travel allowance is also known as an allowance in tax law. You can find the rates on the Skattestyrelsen website (Danish Tax Authority)
If your employer does not pay you a tax-free travel allowance or cover your travel expenses in any other way, you can apply for a travel deduction for your expenses on the trip.
In 2023, you can get a deduction of up to DKK 30,500 if you choose to use the tax deduction for documented expenses. This also means that you must be able to prove your expenses with receipts and invoices.
If you do not want to be required to document your expenses, you can instead use the standard rates for tax-free travel allowance.
When can you claim travel deductions?
To claim deductions for business trips, certain conditions and requirements apply, which you must meet:
- The trip must be work-related and last more than 24 hours. It must be so far from your home that you cannot reasonably commute back and forth to your home.
- While on a business trip, you may not earn money by renting out your home.
- The employer may not cover your travel expenses or already pay you a tax-free travel allowance.
How do you apply for a deduction?
Your business trip and deductions are your responsibility. If you are entitled to a travel deduction for your expenses, you must apply for it yourself.
Simply state it in your annual tax return in section 53.
Do you want to know more?
It couldn’t be easier to keep track of your travel expenses than with Acubiz.
The administrative tasks become much more straightforward, so you are sure to get them done correctly – saving you both time and money.
Contact us if you want to know how we can help your business or book a free online demo to learn more.