Czech employee business travel allowance rules from 1.1.2017

Czech government published updated rates of employee business travel reimbursements valid for year 2017

Mileage for use of private car

Employees are eligible for mileage and the reimbursement of petrol costs provided they use private car for business trip. Average petrol prices are lower compared to 2016 however mileage was increased by CZK 0,1.

The minimum mileage for 2017 is CZK 3,9 for cars.

Reimbursement of petrol costs is determined as a multiple of the price and volume of used petrol. Consumption data from the car’s license are relevant. Price of petrol may be proved by a purchase receipt or the published average petrol price can be used.

For 2017 the following average petrol prices are applicable – CZK 29,5 for 95 octane petrol and CZK 28,6 for diesel.

Domestic daily meal allowance

Statutory daily allowance rates are provided as a lump sum for a calendar day of business travel and vary based on the length of the travel in the particular calendar day. The daily allowance is not supposed to cover the complete costs of employees meals during travel. It is rather a compensation of the increased costs of employees meals. The actual use of the finance by the employee is not relevant for the entitlement for the daily allowance.

The minimum level of published daily allowance is compulsory for the business sector. Providing higher allowance is possible. Tax deductibility is limited to the upper limit of published daily allowance. In case employee is provided a meal without contributing to its price, the employer may deduct certain part of the daily allowance.

Daily travel allowance relevant from 1 January 2017

Length of travel	Public sector	Business sector
5 to 12 hours	CZK 72 to 86	minimum CZK 72
12 to 18 hours	CZK 109 to 132	minimum CZK 109
over 18 hours	CZK 171 to 205	minimum CZK 171

Foreign meal allowance

Rates of foreign travel allowances for 2017 were increased only for 15 mostly African countries. Rate increase for European countries was done only for Finland to EUR 50 per day, other rates remained the same as in 2016.

The statutory rules for providing allowances on business travel are generally the same as for domestic travel. The eligibility for the daily allowance starts with crossing the state borders. In case of air travel, departure from and landing to Czech airport is decisive. In case employee is provided a meal without contributing to its price, the employer may deduct certain part of the daily allowance.

Daily travel allowance in chosen countries:

Country	Currency	Basic rate
France	EUR	45
Lithuania	EUR	40
Latvia	EUR	40
Hungary	EUR	35
Germany	EUR	45
The Netherlands	EUR	45
Norway	EUR	55
Poland	EUR	35
Austria	EUR	45
Romania	EUR	35
Slovakia	EUR	35
Spain	EUR	40
Sweden	EUR	50
Switzerland	CHF	75
UK	GBP	40

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