New regulations for international business travel starting in 2024
Effective January 1, 2024, new flat-rate amounts for additional meal expenses and lodging costs will take effect for business-related and company-sponsored business trips abroad. A recently published letter from the Federal Ministry of Finance (BMF) dated November 23, 2022, which is based on previous guidelines from November 25, 2020, sets out the tax treatment of these costs in detail.
Flat Rates and Scope of Application
The established flat rates are used to determine additional meal expenses and accommodation costs during business trips abroad. For one-day trips abroad, the flat rate applicable to the last place of work abroad applies. For trips lasting several days to different countries, specific rules are established for arrival and departure days as well as intermediate days to determine the meal allowances.
Reduction of meal allowances and meals provided by the employer
The letter explains in detail the reduction of meal allowances, particularly with regard to meals provided by the employer. The reduction is calculated on a daily basis and is based on the respective meal allowances for a 24-hour absence, regardless of the country in which the meal was provided.
Scope of Application and Special Provisions
The amounts set for specific countries also apply to associated states or regions. In addition, the letter provides specific instructions for countries or overseas territories not explicitly covered. It also emphasizes the difference between the amounts for reimbursement by the employer and the actual costs relevant for the deduction of income-related expenses.
Outlook on the Tax Treatment of Business Trips Abroad
The BMF letter provides clear guidelines and detailed instructions for the tax treatment of business trips abroad starting in 2024. The new regulations aim to make the calculation and reporting of additional meal expenses and accommodation costs more transparent and uniform, in order to provide clear guidelines for employees and employers.
Our team of tax advisors in Düsseldorf and Oberhausen is available to answer any questions you may have.
