Tax treatment of travel expenses and travel expense reimbursements for business and professional trips.

Here is a simplified summary of the key points about the new flat rates for meal and overnight allowances for business trips abroad from January 1, 2025:

  • New flat rates for meals and overnight stays on business or work-related foreign trips apply starting in 2025, with changes from the previous year highlighted in bold in official tables.
  • For one-day foreign trips, the allowance of the last foreign destination applies.
  • For multi-day trips visiting multiple countries, the daily allowance corresponds to the location reached before midnight local time.
  • On arrival and departure days, the allowance of the last reached place is used.
  • For full intermediate days (24 hours absence), generally the allowance of the place reached before midnight applies.
  • If another business trip begins immediately after returning from a foreign trip, only the higher meal allowance of that day is considered.
  • Special rules apply for flights and sea travel.

Meal Allowance Reductions and Special Cases:

  • If meals are provided by the employer or arranged by them, the meal allowance for that day must be reduced, regardless of where the meal is consumed.
  • For countries not listed, the Luxembourg rates apply; overseas and external territories use the rates of the mother country.

Overnight Costs and Income-Related Expenses:

  • Flat rates for overnight stays apply only if reimbursed by the employer.
  • Private income-related expenses for overnight stays can only be deducted based on actual costs incurred.
  • The same principle applies to business expenses.

Double Household Maintenance:

  • These rules also apply for maintaining a second household abroad.

 

More detailed information:

Übersicht Pauschbeträge BMF

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