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Travel expenses and travel expense reimbursements for business and work-related trips abroad from 01.01.2023

BMF letter of November 2022

The BMF has published the relevant lump sums for additional subsistence expenses and accommodation costs for business and business-related business trips abroad from 01.01.2023 onwards.

Background

In the case of a work-related activity abroad, the domestic lump sums specified in Section 9 (4a) sentence 3 EStG will be replaced by different lump sums for each country, which will be set at 120 per cent of the foreign daily allowances according to the Federal Travel Expenses Act for cases where the employee is absent from home for the whole day and at 80 per cent of the foreign daily allowances according to the Federal Travel Expenses Act on arrival and departure days and where the employee is absent from home or the first place of work for more than 8 hours. The foreign lump sum allowances as of 01.01.2023 are determined by the BMF in agreement with the highest tax authorities of the Länder rounded up to full euros.

Administrative instruction

The BMF has published the relevant lump sums for additional subsistence expenses and accommodation costs for business and business-related trips abroad from 01.01.2023 onwards. The letter contains a corresponding overview for all countries in which all changes to the amounts applicable for 2021 are listed in bold.

In total, the lump sums of 62 countries or regions were changed. For 59 of these 62 countries, changes were made to the lump sums for additional subsistence expenses as well as for accommodation costs.

The lump sums for additional subsistence expenses have increased in the majority of cases. The amounts for Azerbaijan, Belgium, Bolivia, Denmark, El Salvador, Iceland, Luxembourg and for Atlanta and Chicago in the USA have increased significantly. The amount for accommodation costs increased significantly especially in Denmark, Honduras, El Salvador, Iceland as well as in the USA. The per diems for overnight stays have also increased in most regions.

As in previous years, the lump sum applicable to Luxembourg applies to the countries not covered by the notice. For overseas and foreign territories of a country not covered, the lump sum applicable to the mother country continues to apply.

Reference: BMF, letter dated 23.11.2022 – Download link

 

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