What are the per diem and travel expense allowability rates in the Czech Republic?


CZK 1 coin.

Please find below information regarding the Czech per diem as well as other travel expenses, correct as at the close of 2012 going into 2013, courtesy of Baker Tilly Czech Republic’s Head of Tax Lucia Rablova.

Per diem

The new aspect is the obligation to reduce meal allowances when a free meal was provided.

The minimum statutory rates of meal allowances in case of domestic business trips are shown in the following table:

Period of domestic business trip in calendar day Meal allowances according to the decree Obligatory reduction for 1 free meal
5 – 12 hours min. CZK 64 (max. CZK 76) up to 70%
12 – 18 hours min. CZK 96 (max. CZK 116) up to 35%
more than 18 hours min. CZK 151 (max. CZK 181) up to 25%

The minimum statutory rates of meal allowances in case of business trips abroad are shown in the following table:

Period of domestic business trip in calendar day Meal allowances Obligatory reduction for 1 free meal
less than 1 hour ——— ——–
5 – 12 hours 1/3 of basic rate up to 70%
12 – 18 hours 2/3 of basic rate up to 35%
more than 18 hours the basic rate up to 25%

Naturally, an employer may provide meal allowances to a higher amount, i.e. may set a higher rate of meal allowances or may claim reduction in lower than the statutory rate. From the corporate income tax point of view, the full amount of meal allowances is tax deductible. However, any difference between actually paid meal allowances and statutory provided maximum limits for employees in the public budgets sphere (see column II in table 1 – max. amount) is subject to personal income tax from dependent activities and is counted also for social and health insurance computations.

 

Mileage

–          CZK 3.70 per km and petrol usage reimbursement (price according to the receipt or average price according to the annually issued decree may be used)

Accommodation

–          by receipt

Should you have any further questions in respect of the above please do not hesitate to contact Lucia via this portal, using czechtax@quoracy.com, or via the http://www.bakertilly.cz website.

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