Depending on country-specific legislation, travel per diems and rates are tax-free up to a certain amount. If a company pays its employees lower rates than those specified as tax-free, the employees can claim the difference amounts as income-related expenses in their income tax returns.

In order to claim incurred income-related expenses with the relevant tax authorities, the employee usually has to submit an income-related expenses statement. You can create these income-related expenses statements per employee and year via Travel Management.

Travel Expenses determines the difference between tax-free and enterprise-specific reimbursement amounts per employee and trip. If the enterprise-specific reimbursement amount is higher than the tax-free amount, the system calculates the difference as an additional amount for tax in Payroll. If the enterprise-specific reimbursement amount is lower than the tax-free amount, the difference amount can be claimed as income-related expenses in the employee’s tax returns.