Estonian Company’s Business Expenses

Common business trip expenses, that could be compensated by the company are the following:

• Accommodation costs;

• Travel ticket;

• Travel insurance;

• Visa fees;

• Luggage transport;

• Daily allowance

The idea behind a daily allowance is to provide daily financial support for those who are travelling outside their home country.

The minimum daily allowance for assignments abroad is €22.37.

The tax-free allowance limit is up to €50 for the first 15 days of the month and up to 32€ for the remaining time. The employer may pay a higher daily allowance, but in this case, the difference higher than the allowed limit will be taxed as a fringe benefit.

A 70% reduction in daily allowance is possible when free meals for the employee are provided.

Sources:
https://www.riigiteataja.ee/en/eli/530012014003/
https://www.riigiteataja.ee/en/eli/527022014003/
Business guide for e-Residents
https://www.emta.ee/