Business Travel Expenses in 2024: Frequently Asked Questions

Business Travel Expenses in the Context of Globalization

Business travel expenses are becoming an increasingly important topic in the context of globalization and business scaling. Many companies are expanding their borders, increasing the number of international projects and offices in various countries. In 2023, global business travel expenses reached $1.4 trillion, and they are projected to grow to $1.8 trillion by 2027  . The main categories of expenses include accommodation, meals, and flights. Employees, especially in the remote work sector, may be located in different countries, increasing the need for flights and transportation. Properly managing business travel expenses has become a critical issue for many companies. In this article, we will address the most frequently asked questions about business travel and provide answers based on current realities.

Frequently Asked Questions About Business Travel

Can Board Members Have Their Business Travel Expenses Reimbursed?

Board members can have their business travel expenses reimbursed if stipulated in their employment or civil-law contract. In the absence of such a contract, board members can adopt a resolution (uchwała) that allows for the reimbursement of expenses and the receipt of per diems, similar to employees on employment contracts. This is particularly important given that the average cost of economy-class airfares in Europe is approximately $500.

It’s important to remember the limits set in the country for accommodation and personal transportation. Exceeding these limits won’t be considered company expenses unless otherwise specified by the company’s internal policy or approved by a board resolution.

Can an Employee Be Reimbursed for Taxi Costs from Home to the Airport/Station?

Business travel includes not only per diems and compensation for local transportation but also expenses for travel to/from the station/airport to the destination. However, travel from home to the station is considered commuting to work, and if the employer reimburses the taxi cost, this amount is treated as the employee’s income and is subject to income tax. Considering that 82% of travelers find business trips beneficial for achieving business goals, it is crucial to document all expenses correctly to avoid tax complications.

Is Traveling to Another City Considered a Business Trip?

A business trip is defined as travel outside the locality specified by the employer where the employee usually performs their duties. This can be the city’s boundary or, in the case of a sales agent, the province. The duration and purpose of the trip also play a significant role in classifying the trip as a business trip. For example, 33% of international business trips are conducted in premium class, highlighting the importance of accurately defining the trip’s purpose and the location of duties.

What Are the Deadlines for Employees to Settle Business Travel Expenses?

Upon returning from a business trip, the employee has 14 days to submit all related documents and a report to the employer. This needs to be considered to properly manage business travel expenses and avoid potential penalties or misunderstandings. It is noteworthy that 45% of millennials feel guilty about combining business trips with personal purposes, but increasingly, business travelers are mixing work and leisure.

Can You Combine Business Travel with Personal Travel to Another Country?

Expenses related to business travel must be directly connected to work purposes, such as attending exhibitions, conferences, training on new technologies, or signing contracts. Personal expenses cannot be recognized as business travel expenses and must be documented. Combining work and leisure is becoming more popular, which confirms the “bleisure” trend — combining business and personal travel.

Conclusion

Business travel remains a crucial component of business processes despite changes in work formats and global challenges. Understanding the rules and norms related to business travel helps companies plan trips effectively, avoid tax complications, and achieve their goals. With the growth of remote work and the increase in international offices, the issue of properly managing business travel expenses is becoming increasingly relevant and important. We have compiled the most frequently asked questions from our clients and provided answers in this article. If you need help or consultation on managing business travel expenses, please contact our specialists.

Sources:

1. Corporate travel study 2023 – Deloitte Insights
2. 40+ business travel statistics for 2024 – Expensify
3. The future of business travel: Travel trends for 2024 – Mastercard Newsroom
4. Global Business Travel Association’s Business Travel Index 2023 – GBTA