Expense Reimbursement policy in the Czech Republic

Modified on: Mon, 15 Sep, 2025 at 8:44 PM

TABLE OF CONTENTS

Invoicing and Documentation
Reimbursement and Taxability
Travel and Mileage
Domestic and International Travel
Fuel Costs
Mileage Rates
Parking and Toll

Invoicing and Documentation

Receipts: Required for all reimbursable expenses (e.g., tickets, fuel, tolls, parking).
Vehicle Registration: A copy of the “big registration” is required for private vehicle reimbursement.
Border-Crossing Times: Must be recorded for international trips.
Currency Exchange:
- If an advance is provided: use the CNB rate on the date of advance or the exchange office rate.
- If no advance: use the CNB rate on the first day of the trip.

Reimbursement and Taxability

Employees are entitled to reimbursement for:

Travel and mileage
Meal allowances
Accommodation
Necessary extra costs
Gifts

These expense are tax free.

Travel and Mileage

Business Travel

Employees are entitled to travel allowances when traveling outside their regular place of work. These may include:

Meal allowances
Incidental expenses
Reimbursement for the use of a private vehicle

Please complete the Business Expenses template and attach all receipts.
A sample entry is included at the bottom of each tab in the template.

Public Transportation

Company-paid: No reimbursement.
Employee-paid: Reimbursed with original receipts.

Private Vehicle Use

Reimbursed for both fuel costs and amortization.
Requires submission of vehicle registration for fuel type and consumption.

Domestic and International Travel

1. Domestic Travel (Czech Republic)

Per Diem Allowance

Travel Duration	Allowance
5–12 hours	148–177 CZK
12–18 hours	225–271 CZK
Over 18 hours	353–422 CZK

Meal Reductions (if food is provided)

70% for breakfast (5:00–12:00)
35% for lunch (12:01–18:00)
25% for dinner (over 18:00)

2. International Travel

Meal allowance is payable only if the trip abroad lasts at least 1 hour.
If a Czech meal allowance is also received, the foreign allowance applies only if 5+ hours are spent abroad.

Example: 6 hours in CZ + 3 hours in Germany = CZ allowance only.

Border-Crossing Times

Must be recorded (especially for car, bus, train).
For flights: use departure time as the start of the trip abroad and arrival time as the end.

Meal Allowance Abroad

Travel Duration	Allowance
1–12 hours	1/3 of rate
12–18 hours	2/3 of rate
Over 18 hours	Full rate

Allowance is based on the country where the employee spent the most time that day.
Decree No. 373/2024 – Foreign Rates

Currency Exchange Rates

With advance: Use CNB rate on the date of advance or exchange office rate.
Without advance: Use CNB rate on the first day of the trip.

Quick Reference Table

Category	Czech Republic	Abroad
Minimum Duration	5 hours	1 hour (5 if CZ allowance too)
Allowance Amounts	148–422 CZK	1/3, 2/3, or full daily rate
Meal Reductions	Yes – 70%, 35%, 25%	Same as CZ
Special Rules	Decree 475/2024	Decree 373/2024
Exchange Rate	Not applicable	CNB or exchange office rate

Fuel Costs

With Receipt: Actual price per liter is used.
Without Receipt: Use average prices published by the Ministry of Labor and Social Affairs.

Submit a copy of your vehicle registration to verify:
Fuel type
Average fuel consumption

Mileage Rates

Vehicle Type	Rate per km
Cars & Vans	5.80 CZK
Motorcycles	1.60 CZK
Tricycles	1.60 CZK

Parking and Toll

All parking and toll tickets must be included in the reimbursement submission to be reimbursed tax free.

Health and Wellness

In the Czech Republic, employers have the option to provide non-monetary health and leisure benefits to employees. These benefits are a great way to support employee well-being, but it’s important to understand how they work and what’s required for them to be tax-exempt.

Employers may choose to offer:

Leisure time benefits:
Cultural and sporting events, recreation, books, and similar activities.
Health-related benefits:
Examples include flu vaccinations, immunity support products, medical devices, and other health-related services.

These benefits are tax-exempt under Section 6(9)(d) of the Income Tax Act (ITA), but only up to specific limits:

Health benefits: Exempt up to the value of the average wage for the tax period
→ For 2025, this limit is CZK 46,557
Other leisure benefits: Exempt up to half of the average wage
→ For 2025, this limit is CZK 23,278

To qualify for tax exemption:

The benefit must be non-monetary.
The invoice must be addressed to the employer.
The payment must be made directly by the employer from their bank account.
These benefits are not considered travel expenses.

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