Changes in accounting for employee business trips effective since 1 January 2015

The Czech Ministry of Labour and Social Affairs issued a new decree which, as it is every year, slightly regulates the basic rates of compensation for the use of road motor vehicles, subsistence expenses for entrepreneurs and the public sector, as well as average fuel rates. Reimbursement for travel expenses is governed by the Labour Code (Act No. 262/2006 Sb., Part 7) and by Decree No, 328/2014 effective since 1 January 2015. Compared to 2014, there have been no changes to the basic rates of subsistence expenses for foreign business travel applicable for 2015 (Ministry of Finance Decree No. 242/2014 Sb.) although there used to be minor amendments each year in the past. Employees in the business sector that are sent on a business trip in the Czech Republic are entitled to the following compensation:

Domestic subsistence expenses

Employees are entitled to reimbursement by the employer of subsistence expenses under Section 163 (1) of the Labour Code for each calendar day of business travel at the following minimum rates:

• CZK 69 for travel for a period from 5 to 12 hours;
• CZK 104 for travel for a period exceeding 12 hours up to 18 hours;
• CZK 163 for travel exceeding 18 hours.

If employees on a business trip are provided free of charge with a meal that is considered as breakfast, lunch or dinner and to which employees pay no contributions, the employees are entitled to subsistence contributions for each free meal reduced up to the following amounts:

• 70% of subsistence allowances for a business trip lasting 5 to 12 hours;
• 35% of subsistence allowances for a business trip lasting 12 to 18 hours;
• 25% of subsistence allowances for a business trip exceeding 18 hours.

Employees are not entitled to subsistence contributions in the following cases:

1. during a business trip lasting 5 to 12 hours, the employee is provided with 2 meals free of charge;
2. during a business trip lasting 12 to 18 hours, the employee is provided with 3 meals free of charge.

Compensation for private car use

If an employee and an employer agree that the employee will use his private car for business trips, the employee is entitled to compensation at the basic rate and compensation for expended fuel per business kilometre. Under Section 157(4) of the Labour Code, compensation basic rates per kilometre travelled are as follows:

• a minimum of CZK 1.00 in one-track vehicles and three-wheelers;
• a minimum of CZK 3.70 in passenger road motor vehicles.

Compared to 2014, there has been no change in the compensation for the use of road motor vehicles, as the prices of components associated with the acquisition and operation of motor vehicles increased only slightly.

Average fuel rates

Employees are entitled to reimbursement for the costs of expended fuel in the amount calculated based on the fuel price and the fuel expended by a particular vehicle. The compensation is calculated based on the price of fuel substantiated by the employee. If the employee has more receipts for the purchase of fuel related to his business trip, the price is calculated as the arithmetic mean. If the employee fails to substantiate the actual price of the fuel, the average prescribed by the decree will be applied. Average fuel rates per litre of fuel for 2015 under Section 158 (3), third sentence of the Labour Code are as follows:

• CZK 35.90 for 95 octane petrol;
• CZK 38.30 for 98 octane petrol;
• CZK 36.10 for diesel fuel.