By: Mag. Julia Saric-Bischof, Petra Haimberger, MA
Business travel is a regular part of daily life in many companies. However, there are tax and labor law pitfalls to watch out for when it comes to accounting. An up-to-date, legally compliant travel expense policy is therefore essential for companies.
Legal Basis: What Are the Rules?
The Income Tax Act (EStG) and the Payroll Tax Guidelines (LStR) govern the tax-exempt treatment of per diems, lodging allowances, mileage allowances, and other travel expense reimbursements. Collective bargaining agreements define binding minimum entitlements, such as the amount of the per diem or expiration periods, and the amounts specified therein must not be undercut.
The Telework Act (§ 2h AVRAG) stipulates that telework must be expressly agreed upon in writing. In addition, the Occupational Safety Act (ASchG) and the Computer Vision Task Regulation require employers to cover the costs of computer vision glasses if a need is determined.
Current flat rates (as of 2026)
Payment | Max. tax-free amount (daily) |
Daily allowance (domestic) | EUR 30,00 |
Overnight allowance | EUR 17,00 |
Mileage allowance (car) | EUR 0,50 pro km |
Common Risks for Employers
Common risks for employers arise primarily from tax and organizational requirements. In particular, tax deadlines for daily allowances are often overlooked: These are tax-exempt for a maximum of five days at the same work location, or up to 15 days per calendar year. For distances exceeding 120 kilometers, the tax exemption applies for a maximum of six months.
Another critical issue is the lack of the mandatory A1certificate for business trips within the EU or the EEA, even if the assignment is only brief. In the case of cross-border telework, there is also the risk that a home office permanent establishment may inadvertently and unintentionally be created if work is regularly performed abroad. Problems also frequently arise around hospitality expenses: costs are only 50% tax-deductible and only if there is a demonstrable business purpose. If the relevant documentation is missing, there is a risk that the expenses will not be recognized for tax purposes.
Recommendations for Companies
A travel expense policy should be developed in the company, or existing policies should in any case be reviewed and, if necessary, revised to take into account both current flat ratesand legal changes. This includes, in particular, the tax-free maximum rates applicable from 2025, such as a daily allowance of EUR 30, an overnight allowance of EUR 17, and a mileage allowance of EUR 0.50 per kilometer. At the same time, telework must be clearly regulated, for example through written agreements. In addition, it must be clearly defined when trips undertaken from the home office are considered business trips.
Equally essential are clearly structured approval and billingprocesses, including the mandatory A1 certificate for business trips abroad, the proper maintenance of mileage logs, collection of receipts, and complete documentation of the purpose of the trip. Hospitality expenses should also be clearly regulated, for example through approval requirements and the precise documentation of participants, the occasion, and the invoice.
Furthermore, it is essential to comply with all legal deadlines, as tax-free per diems may only be granted within the prescribed limits. Finally, the use of digital travel expense tools is recommended to simplify reimbursement processes, increase transparency, and ensure compliance in the long run.
Need assistance?
We are happy to assist you with implementing or updating your travel expense policy and assessing potential tax risks. This is especially relevant for working from home abroad and risk assessment associated establishment of home office permanent establishments.
We also advise you on applying for A1 certificates for business trips abroad. Contact us now!
