Travel Expenses and Foreign Trips 2024

The tax treatment of foreign travel expenses for employees is clearly regulated in Germany. Employers can reimburse their employees for additional meal expenses and accommodation costs tax-free, with the amount of the flat-rate allowances (per diems) depending on the respective country of travel.

Example: Business trip to France

An employee undertakes a three-day business trip to Paris in 2024 with the following itinerary:

• Monday:
  • Departure from the home in Berlin at 8:00 AM.
  • Arrival in Paris at 2:00 PM.
  • Business appointments until 6:00 PM.
  • Overnight stay at a hotel.
• Tuesday:
  • Business appointments from 9:00 AM to 5:00 PM.
  • Overnight stay at a hotel.
• Wednesday:
  • Business appointments from 9:00 AM to 12:00 PM.
  • Departure from Paris at 1:00 PM.
  • Arrival in Berlin at 7:00 PM.

Meal allowances (Verpflegungspauschalen):

The following per diems apply to France in 2024:

• Meal allowance for a full 24 hours: 58 €
• Meal allowance for arrival and departure days: 39 €

Based on the itinerary, the following tax-free reimbursements result:

• Monday (day of arrival): 39 €
• Tuesday (full day): 58 €
• Wednesday (day of departure): 39 €

Total meal allowances: 136 €

Accommodation costs:

Actual accommodation costs can be reimbursed tax-free, provided they are reasonable. Reasonableness is based on the usual prices at the destination. Alternatively, the employer can reimburse the flat-rate accommodation allowance for France in the amount of 159 € per night tax-free.

In this example, two nights were spent in Paris. If the employer applies the flat rate, the tax-free reimbursement is:

• 2 nights × 159 € = 318 €

Total reimbursement amount:

The sum of the meal allowances and accommodation allowances is:

• 136 € (meals) + 318 € (accommodation) = 454 €

This amount can be reimbursed to the employee tax-free.

Notes:

• Meals: If meals are provided to the employee by the employer or at the employer's instigation free of charge or at a reduced price, the meal allowances must be reduced accordingly.
• Receipts: Receipts are required for the reimbursement of actual accommodation costs.
• Up-to-date status: The per diems mentioned are based on the values for the year 2024. It is advisable to check the current allowances for the respective year.

"Travel and taxes? We'll show you how to clear the way – for more money in your pocket!"

Meal and Accommodation Allowances 2024 – Popular Destinations

Facts and Notes on Travel Expenses and Place of Work

1. Definition of the Place of Work

A place of hiring, employment, or work is specified in recruitment forms or employment contracts in accordance with the German Transparency Act (Nachweisgesetz) and collective bargaining regulations. However, this specification does not automatically mean that it constitutes a "first center of activity" (erste Tätigkeitsstätte) in the tax sense within the meaning of § 9 Absatz 4 EStG (Income Tax Act).

2. Clarification by the Employer

The employer can state in writing (e.g., in employment contracts or travel guidelines) that this specification does not constitute an assignment to a first center of activity under labor law. This clarification is important for obtaining tax advantages when settling travel expenses.

3. Travel Expense Accounting

Employees can receive tax-free reimbursement for additional meal expenses and accommodation costs for business trips. The destination and duration of absence must be precisely documented for every trip.

4. Meal Allowances and Accommodation Costs

• Meal allowances depend on the duration of the absence (more than 8 hours, full calendar day, arrival or departure day).
• Example: In Paris, the following per diems apply in 2024:
  • Additional meal expenses (full day): 58 €
  • Accommodation costs: 159 €

5. Distinction of the First Center of Activity

A first center of activity (erste Tätigkeitsstätte) is defined for tax purposes as the location where the employee is permanently active. This can deviate from a contractual specification under labor law. If no assignment exists, the focal point of the activity is decisive.

Tips for Employment Contracts and Travel Guidelines

• Written declaration by the employer: Employers should clearly state whether a specified place of work should be considered a first center of activity under labor law or for tax purposes.
• Company travel guidelines: It is recommended to define in the travel guidelines how places of activity and the settlement of travel expenses are handled.
• Updating documents: Ensure that all recruitment forms, employment contracts, and guidelines are regularly reviewed and adapted to current tax requirements.

Correctly defining places of work and activity, along with clear communication regarding the tax treatment of travel expenses, is crucial. Both employees and employers benefit from clean regulations, as tax advantages can be utilized and conflicts avoided.

Note: This article is for general information purposes and was carefully prepared by the Lexo.Tax editorial team. Personal tax advice can only be provided within the framework of a membership with Lexo.Tax – and exclusively to the legally permitted extent according to § 4 Nr. 11 StBerG (Tax Consultancy Act).

📥 Download PDF: Travel Expenses 2024