A travel expense report is a statement of expenses and income in connection with business trips. It includes documentation and reporting of costs for transport, including a mileage log, expenses for accommodation, meals and other expenses that employees have incurred during travel on duty. The travel expense report is used for reimbursement of outlays and the tax calculation.
Frequently asked questions about travel expense report
What is a travel expense report?
A travel expense report is a statement of expenses and income in connection with business trips. It includes documentation and reporting of costs for transport, including a mileage log, expenses for accommodation, meals and other expenses that employees have incurred during travel on duty. The travel expense report is used for reimbursement of outlays and the tax calculation.
When does a trip exist in a tax sense?
A trip in a tax sense exists when you as an employee or self-employed person temporarily perform work in another place than your usual place of work, and where, due to the distance or the organization of the work, it is not possible to stay overnight at your usual residence without significant inconvenience.
It is not sufficient that the place of work is merely far away. It must be a temporary place of work, and staying overnight at the residence must be unrealistic.
What is the purpose of the rules?
The purpose of the rules is to ensure that deductions are only granted for expenses that have a direct business connection. The trip must therefore take place as part of the work and not for private reasons. If a business trip is combined with private stays, tax deductions cannot be obtained for the private part.
What can you get a deduction for on a business trip?
You can get a deduction for meals, accommodation and incidental expenses when you are on a business trip with overnight stay outside your usual residence, and the employer neither pays the expenses directly nor pays tax-free travel allowance (per diems).
How can the deduction be calculated?
The deduction can be calculated in one of the following ways:
Is there an annual deduction ceiling for employees?
For employees, an annual deduction ceiling of DKK 32,800 (2025) applies for deductions according to the standard rates.
What is tax-free travel allowance (per diems)?
Tax-free travel allowance (per diems) is an amount that the employer can pay tax-free to cover expenses for meals and accommodation during a business trip. The condition is that the trip meets the Danish Tax Agency’s conditions, and that the allowance does not exceed the fixed rates. There is normally no requirement for receipts, but the employer must be able to document the purpose, duration and destination of the trip.
When is a deduction used instead of tax-free travel allowance?
A deduction is used if the employer neither pays tax-free travel allowance nor covers the expenses directly. In that case, you can deduct the expenses yourself in your annual tax assessment – either according to standard rates or according to actual documented expenses.
Can you get both a deduction and tax-free travel allowance for the same expense?
It is important to be aware that you cannot get both a deduction and tax-free travel allowance for the same expense.
How important is documentation?
Documentation is decisive, regardless of whether a deduction or tax-free travel allowance is used.
What if a trip has both business and private purposes?
If a trip has both business and private purposes, the expenses must be divided between the business and the private part.
Only the part of the trip that directly relates to the work can form the basis for a deduction or tax-free travel allowance. Expenses that relate to the private part of the stay are not deductible.
This means, for example, that if a business trip is extended with vacation days, expenses for meals, accommodation and stay during the vacation days cannot be deducted or reimbursed tax-free.
Transport expenses can only be deducted in full or in part, depending on whether the main purpose of the trip is business. If the trip only partly has a business purpose, the transport expenses must be allocated proportionally between the business and the private part.
Typical pitfalls
Typical pitfalls:
How to avoid them
How to avoid them:
Disclaimer
As the above is for guidance purposes only, we accept no liability for dispositions that may be made on the basis of the above without prior individual advice. We accept no liability for errors and omissions.