New travel cost reimbursement rates from 20 August 2022 and meal allowance

Published:
8. September 2022

Although travel reimbursement rates used to be regularly announced at the beginning of the calendar year, unfavourable economic developments and price increases caused travel reimbursement rates to be updated earlier in the year.  Decree No. 237/2022 Coll. concerning the current travel reimbursement rates for 2022 was published in the Collection of Laws, effective from 20 August 2022. 

Increase in domestic meal allowance rates from 20 August 2022

  • business trip of 5 or 12 hours – CZK 120 to 142 (before the amendment it was CZK 99 to 118)
  • business trip of 12 to 18 hours – CZK 181 to 219 (before the amendment it was CZK 151 to 182)
  • business trip of longer than 18 hours – CZK 284 to 340 (before the amendment it was CZK 237 to 283)

In addition, there has also been an increase in the travel cost reimbursement rate in article 4 letter b) of the Labour Code, which increases the fuel price for petrol 98. Here the amount for 1 litre of petrol 98 has been increased to CZK 51.40/l from the original CZK 40.50/l. 

Furthermore, the exempt amount of the meal allowance will also change as of 20 August 2022. 

Just a reminder: Act No. 609/2020 Coll. added to the Income Tax Act the option of providing employees with a cash contribution (the so-called meal allowance) in addition to the meal allowance in non-monetary form with effect from 1 January 2021. It is exempt from tax up to 70% of the upper limit of the meal allowance for business trips of 5 and 12 hours. For 2022, the exempt income on the part of the employee was CZK 82.60. The aforementioned Decree No. 237/2022 Coll. increases the domestic meal allowance rates with effect from 20 August 2022, therefore the amount of the tax-free meal allowance increases to CZK 99.40 from that date.

The exemption limit for the month of August should be treated differently for the period from 1 August to 19 August 2022, when a maximum of CZK 82.60 per shift can be exempted, and for the period from 20 August 2022, when the increased limit of CZK 99.40 per shift already applies. If the employer provides higher meal allowance than the exempt limit, this must be taken into account when calculating the tax base. 

Roman Burnus 

 

Author: Roman Burnus