Since 1 January 2014, slight changes apply to the calculation of the costs of business travel, i.e. in payments for the use of passenger cars for business purposes and subsistence expenses for business trips in the Czech Republic or abroad. The same as a year ago, the rates have been slightly increased once again.
Subsistence expenses for domestic business travel have increased from CZK 1 to CZK 3 in the individual time ranges. Employees are entitled to reimbursement of subsistence expenses for each calendar day of domestic business travel at the following minimum level:
- from CZK 67 to CZK 80 for travel for a period from 5 to 12 hours;
- from CZK 102 to CZK 123 for travel for a period exceeding 12 hours up to 18 hours;
- from CZK 160 to CZK 191 for travel exceeding 18 hours.
The lower limits for subsistence expenses are minimum rates to which an employee is entitled in the business sector under the Labour Code. An employer in the private sector may pay higher amounts at an arbitrary level than the prescribed minimum rate but must not pay a lower amount than the lower limit. The amount in excess of the rates must be included in the employee’s tax base and subject to tax and health insurance and social security contributions paid by the employer and the employee. The upper threshold only applies to employees working in the public sector.
Also, a change was made to the basic rate for reimbursement for the use of passenger cars for business travel. The Decree of the Ministry of Labour and Social Affairs has increased the rate effective from 1 January 2014 from CZK 3.60 to CZK 3.70 per business kilometre:
Average fuel rates have been increased as follows:
- to CZK 35.70 for 95 octane petrol;
- to CZK 37.90 for 98 octane petrol;
- to CZK 36.00 for diesel fuel.
The rates for business travel abroad have changed only in respect of 4 countries, namely:
- Algeria (from EUR 35 to EUR 40)
- Azerbaijan (from EUR 35 to EUR 40)
- India (from EUR 35 to EUR 40 EUR)
- Venezuela (from USD 55 to USD 60).
The principles governing a reduction in subsistence expenses where an employer provides an employee with food free of charge during travel remain the same as in 2013, both in respect of domestic and foreign business travel.