Indexed per diem allowances: what does this mean for your business?
May 2026 - Since March 1, 2026, the flat-rate daily allowances for domestic business trips have risen slightly once again. For your SME, this is no minor detail: this scheme remains an attractive and administratively simple way to reimburse expenses, both for employees and for directors. But if you want to take full advantage of this system, you must apply the rules correctly.
Why this allowance remains attractive
The flat-rate daily allowance offers a dual benefit. For employees, it’s a practical solution to cover expenses during business trips, without receipts or complex paperwork. For your company, these allowances are tax-deductible, making them financially attractive.
Please note: correct processing is essential. The amounts must always be reported on the appropriate tax forms (281.10 or 281.20) and explicitly identified as employer-specific expenses. Errors can lead to reclassification as wages, resulting in additional taxes.
Strict Conditions and Key Considerations
The tax authorities apply clear criteria. For example, a business trip must last at least six hours and be strictly for professional purposes. Commuting between home and work is therefore excluded from the scheme. In addition, the so-called 40-day rule applies: anyone who works at the same location for more than forty days a year is deemed to have a permanent workplace, which means the allowance no longer applies.
In sectors such as construction, a job site is often considered a permanent workplace, especially for managers. This can have significant implications for the application of this scheme.
Limits and Cumulative Rules
The government imposes caps to prevent abuse. For frequent business trips, a maximum of sixteen days per month applies. Additionally, there is a prohibition on combining meal vouchers: if an employee receives meal vouchers, the employer’s contribution toward them must be deducted from the per diem allowance.
Overview of Indexed Amounts
Effective January 1, 2023
Daily flat-rate allowance (meal expenses): 19.99 euros
Maximum monthly allowance for regular domestic travel (up to 16 days): 319.84 euros
Additional daily flat-rate allowance for lodging expenses: 149.99 euros per night
Since December 1, 2023
Daily flat-rate allowance (meal expenses): 20.39 euros
Maximum monthly allowance for regular domestic travel (up to 16 days): 326.24 euros
Additional daily flat-rate allowance for lodging expenses: 152.99 euros per night
Effective June 1, 2024
Daily flat-rate allowance (meal expenses): 20.80 euros
Maximum monthly allowance for regular domestic travel (up to 16 days): 332.80 euros
Additional daily flat-rate allowance for lodging expenses: 156.05 euros per night
Since March 1, 2025
Daily flat-rate allowance (meal expenses): 21.22 euros
Maximum monthly allowance for regular domestic travel (up to 16 days): 339.52 euros
Additional daily flat-rate allowance for lodging expenses: 159.17 euros per night
Effective March 1, 2026
Daily flat-rate allowance (meal expenses): 21.64 euros
Maximum monthly allowance for regular domestic travel (up to 16 days): 346.24 euros
Additional daily flat-rate allowance for accommodation costs: 162.35 euros per night
Good to know: If you exceed these limits, are you not complying with the conditions? Then you risk the allowance being considered taxable income. Correct application therefore remains essential to maintain the tax benefit.
