Everything About the Daily Allowance

What Is the Daily Allowance?

The Daily Allowance is a travel allowance granted to board members, shareholders, or company employees for business trips. It is paid from the corporate bank account and is tax-free.

How Does the Daily Allowance Work?

Daily allowance is intended to cover minor expenses, so while we recommend that travelers collect some receipts to support the Daily Allowance, submitting these receipts is not mandatory. For small travel expenses where obtaining an invoice in the company’s name is not reasonably possible, such as certain public transport tickets, parking fees, or similar minor expenses, these costs may be covered through the Daily Allowance, where applicable.

However, for larger travel expenses such as accommodation, airfare, car rental, and other significant costs, a proper invoice containing the company’s legal details is required and must be uploaded in the Purchases section of Companio's dashboard. A ticket, receipt, or booking confirmation issued only in the traveller’s name does not replace a valid company invoice.

Who Is Eligible for the Daily Allowance?

To be eligible for the Daily Allowance, you must be a member of the company's board, a shareholder, or an employee (using Companio Work). Contractors cannot benefit from the Daily Allowance.

Can I use the Daily Allowance as a Tax-free Salary for Constant Travel?

No, the Daily Allowance should not be regarded as a tax-free salary for digital nomads. The business trip must have a clear purpose and a specific duration.

While you can visit a customer for a month or attend a summit for a week, you cannot use it for extended stays in a location such as living in Chiang Mai for three months. There needs to be a specific reason for the trip.

How Do I Use the Daily Allowance?

To use the Daily Allowance, you must inform us about the trip in advance and provide appropriate documentary support demonstrating the purpose and duration of the trip, such as flight or travel details, accommodation information, conference tickets, or a signed customer document.

These documents help support the business trip itself. They do not replace the proper company invoice required to deduct larger expenses such as flights or accommodation.

Is It True that I Can Get a Tax-free Salary of €1230 Every Month?

No, that is not true. The amount you may be referring to is the Daily Allowance, which allows you to withdraw a tax-free amount from your business account for business trips. It is intended to cover your expenses during work-related travel.

However, you must declare the trip in advance, provide supporting documentation, and justify the purpose and duration of the trip. The Daily Allowance cannot be claimed as a tax-free salary for extended stays without a clear business purpose.

What Are the Maximum Amounts for the Daily Allowance in Estonia?

According to the law (§ 13 (3) of the Income Tax Act), the tax-exempt limit of daily allowance for Estonian companies during an assignment abroad is 75 euros for the first 15 days of an assignment abroad, but no more than for 15 days a calendar month, and 32 euros for each following day.

All daily allowance amounts above the specified limits are subject to income tax.

Updated on: 14/08/2026