Bookkeeping

Per diem (daily allowance)

A fixed daily amount that covers meals and incidental costs on business trips, tax free up to national rates that depend on the destination and duration.

What Per diem (daily allowance) means

A per diem replaces the reimbursement of individual meal receipts during a business trip. The employer pays a fixed amount per day, or per part of a day, and the employee does not have to prove the spending. Up to the national rate the allowance is exempt from income tax and social contributions; the business deducts it as an expense. Accommodation is normally reimbursed separately on actual cost.

Rates differ by country of destination, are often published annually by the finance ministry, and are reduced when meals are provided free of charge. Domestic trips usually have lower rates than foreign ones and a minimum duration before any allowance is due. Sole traders can claim per diems in some countries but not in others. Kontevia records travel dates and destinations and applies the rate table of the user's country.

Related terms

Mileage allowanceA fixed amount per kilometre that compensates the use of a private vehicle for business trips, usually tax free up to a national rate.Deductible expenseA cost incurred to earn taxable income that reduces the tax base. Must be documented, business related and not excluded by law.Social security contributionsMandatory payments for pension, health and other insurance schemes, paid by employers, employees and the self-employed under national rules.

This entry is general information, not tax advice. Rules change; check the current position with your adviser or the tax authority of your country.

Back to the full glossary

Kontevia applies these rules for you

Rates, thresholds and e-invoicing formats come from the jurisdiction data of your country. You send the document, Kontevia books it and keeps the VAT summary ready.

Start in early access