It is very important to know how to manage the deductible expenses generated by our business trips, in order to optimize resources. We will identify the expenses maximum amounts to be able to obtain the tax benefit.
First, Let’s define what the deductible travel expense is: these expenses are those subject to tax deduction for companies. You can deduct travel and travel to pay for lodging, food, car rental, transportation or gasoline.
Requirements to deduct per Diem or business travel expenses:
- Among the requirements we have that the activity must be carried out at a minimum distance in kilometers according to your country. They are taken into account from the work establishment or tax address.
- It is essential that the person to whom the disbursement is made has a working relationship with the taxpayer who makes the deduction or who is providing professional services.
- The vouchers must comply with the fiscal requirements indicated by the tax collection department according to your country.
- The first thing you should know is that expenses can only be deducted if there is a digital trail of operations, so cash expenses are not deductible. On the other hand, it is necessary that you demand an invoice when making a purchase, this ticket must contain:
- Name or business name of the person issuing the invoice
- Address and tax identification number of the issuer
- Date and place of issue
- Description of the product or service provided
- Tax data of the person who will deduct the expense
- If the activity is carried out abroad, it must be accompanied by documents with clear and complete verification.
You must check the limits according to your country, either in dollars or euros that mark the collection stay per beneficiary.
Similarly, if your trip is outside your country, there will be imposed limits that you must consider.
It must be shown that the expenditure on food allowances was unavoidable, as well as the receipt or invoice of the expense, having paid by electronic means that leave a justifiable trace and having chosen a registered business with hotel or restaurant activity.
In several countries a limit in territory is not contemplated. This item does not have a limit amount because the price of bus, plane, or gasoline tickets cannot be controlled in case you travel in your car, but if the trip is abroad, the daily fixed rate must be known. It is important to note that you must verify that this trip was exclusively for work reasons and not for recreational purposes.
Valid in case of traveling in a group and renting a van, truck or car abroad, with a daily amount that is set by the tax collector of your country.
In general, if they are deductible, as long as we obtain the corresponding invoice and the payments are digital, since it is easier to verify it. Without forgetting the restrictions that each country has regarding the collection.
Travel expenses for seminar or conventions
These expenses must break down the amount of the event in the tax receipt or in the supporting documentation.
Already having this data you will be able to better plan your expenses and be able to obtain the best tax benefits and resources. It only remains to wish you a good trip that will lead to growth for your company.