Tax changes – Amount of daily allowance for business travel abroad

Below you can find an overview of the most important tax changes regarding the decision on the amount of daily allowance for business travel abroad for users financed from the state budget.

The Decision on the amount of daily allowance for business travel abroad for users financed from the state budget was published in the Official Gazette No. 16/24 of February 9, 2024, which entered into force on the day of adoption, i.e. February 8, 2024.

The new Decision has increased the amounts of daily allowances for business travel abroad, which as a material right applies to users who are financed from the state budget, for whom these costs are recognized as material costs.

On the other hand, for all other users who are not financed from the state budget, this decision is important because it prescribes the non-taxable amounts of daily allowances abroad and daily allowances for field work abroad for all those who pay them out.

Namely, according to income tax regulations, the non-taxable amount of daily allowances for business travel abroad that lasts more than 12 hours a day and daily allowances for field work abroad is determined up to the amount determined by the regulations on business travel costs for users of the state budget.

In addition to the amounts of non-taxable payments, it is important for all entrepreneurs to determine, i.e. adjust the employees’ rights to the amounts of daily allowances abroad and daily allowances for field work abroad (material employee rights) in their internal regulations (Rules of procedure, collective agreements, internal decisions) or in the labor contracts themselves.

Namely, if an internal regulation determines an amount different from the amount determined by the Decision, the employer can, that is, may pay out only the stated amount.

Additionally, the following countries were added to the list: Republic of Kosovo, Vatican City State, Republic of San Marino and Principality of Liechtenstein.

With the new Decision entering into force, the Decision on the amount of daily allowance for business travel abroad for users financed from the state budget was put out of force (Official Gazette No. 8/06).

The new amounts of daily allowances for business travel abroad and daily allowances for field work abroad applicable to all those who pay them out for individual countries/areas are as follows:

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Please keep in mind that legislation tends to change frequently. This article is therefore necessarily based on our understanding and correct interpretation of the law and practice at the time of issuing this atricle. This article will not be updated due to changes in legislation that occur after this article is published.