Tax-free travel allowance in transport companies
Employees travelling for work may be paid a tax-free travel allowance by their employer to cover any travel expenses. This also applies to lorry drivers in transport companies.
This allowance is also known as ‘subsistence allowance’ and may be paid in accordance with the standard rates that apply. The allowance is meant to cover expenses for food, petty acquisitions and accommodation when you are travelling. However, drivers transporting goods or individuals are not entitled to have their accommodation expenses covered according to the standard rates.
There are certain requirements that need to be met in order to be paid the tax-free travel allowance. It is therefore important to make sure that your travel documents are in order.
Below, you can see what you need to be aware of as an employee or an employer.
As a driver/employee: Things to remember
In case of incorrect travel documentation, you may have to pay tax on the allowance. It is therefore important to register your travel expenses correctly and keep the necessary documentation to allow your employer to calculate your allowance correctly and check that the requirements have been met.
3 steps to make it easier:
As a haulier/employer: Things to remember
As an employer, it is your responsibility to check and approve that the requirements have been met and that the travel documentation contains the necessary information. In case of incorrect travel documentation, your employees may have to pay tax on the allowance.
3 steps to make it easier:
More information:
Read more about Tax-free travel allowance
For more detailed and legal information in Danish, see section C.A.7. 'Rejseudgifter' (Travel expenses) in our legal guide.