Travel reimbursement is regulated by the Act No. 283/2002 Coll. on Travel Reimbursement and its later amendments. This law regulates provision of compensation of expenses incurred during business trips, both for employees or appointed persons who act based on agreement other than the employment contract, persons who are members of company’s bodies (such as the statutory), etc. 

In the following lines we are offering you an overview of rules valid for travel reimbursement provision:

Reimbursement during domestic business trips:

During domestic business trips, dispatched person is entitled for the compensation of mainly the following: meals, travel expenses, accommodation expenses, side expenses, reimbursement of travels on family visit purposes, etc. Relevant receipts shall be provided to substantiate for the above-mentioned expenses, meal expenses excluding. Meal allowances depend on the duration of the business trip in the calendar day. According to §5 of the given Act, the person on a business trip is entitled for the following reimbursement: 

                Duration of the business trip                        from 1 Jan 2009         since 1 Apr 2009

-         5 – 12 hrs including                                                                            3.30 €                                     3.60 €

-         12 – 18 hrs including                                                                          5.00 €                                      5.40 €

-         over 18 hrs                                                                                         7.70 €                                      8.30 €

In case that the employee on a business trip is provided with full free meal, employer does not provide meal allowances. If free meals are provided only partially, the meal allowance is reduced as follows:  

-      free breakfast provided – a 25% reduction of the sum for trips of 18 hrs and more, 

-      free lunch provided – a 40% reduction of the sum for trips of 18 hrs and more, 

  -    free supper provided – a 35% reduction of the sum for trips of 18 hrs and more. 

 

 

Reimbursement during business trips to abroad:

During a business trip to abroad, the employee is also entitled for the reimbursement of substantiated travel expenses and expenses related to accommodation, any side expenses, meals, visits of family, but moreover pocket money and insurance covering medical expenses in a foreign country. Meal allowances for business trips abroad may be found here: for year 2010 [last year 2009], , they also depend on the duration of the business trip. A person on a business trip is entitled for the following:

-         for business trips up to 6hrs including  - 25% of the base rate,

-         for business trips of 6 to 12 hrs including - 50% of the base rate,

-         for business trips over 12 hrs - 100% of the base rate.

 

In case that the employee on a business trip abroad is provided with free meal, the meal allowance is reduced as follows:  

-      free breakfast provided – a 25% reduction of the sum for trips of 18 hrs and more, 

-      free lunch provided – a 40% reduction of the sum for trips of 18 hrs and more, 

  -    free supper provided – a 35% reduction of the sum for trips of 18 hrs and more. 

 

During a business trip to a foreign country, employee is entitled for non-taxable pocket money of 5% to 40%, based on duration of the trip, however, unreduced according to the rules that apply for free meal provision.

Other rules related to business trips:

-         In the case that a person dispatched to a business trip is not an employee but a contractor, the contract concluded with such person must clearly specify that these expenses will be reimbursed,   

-         employee is obliged to submit all the documents related to the business trip within 10 days  after completion of the business trip, unless otherwise provided in the employment contract or work agreement (longer period),

-         employer is obliged to settle the accounts related to the business trip no later than 10 days after the documents were submitted, unless the employment contract or work agreement allow a longer period,

-         in case that the company dispatches an employee to a  business trip abroad, employer is obliged to provide the employee with advance on expected expenses. In other cases, the employer is obliged to provide advance only if this is requested by employee (e.g. in case of a domestic business trip).

According to § 19/e Act on Income Tax, travel expenses may be reimbursed also for self-employed individuals and the individuals with incomes stipulated by special regulations.