How to Deduct Business Travel Expenses?
Business travels in Estonia are considered deductible expenses when they align with the company's objectives. Additionally, members of the company (board members, shareholders) and employees are eligible for daily allowances (not contractors, though).
For instance, visiting a client in France or sending an employee from your design agency to a web design conference qualifies as deductible expenses. However, to be eligible as a business travel, it must serve a specific corporate purpose and have a reasonable and defined duration.
In simpler terms, you can't label a three-month stay in Bali as a business travel just because you plan to 'write about it on your blog,' even if you own a travel blog. Legitimate business travel involves short-term client collaborations (e.g., a couple of weeks), attending conferences, or holding business meetings with company partners.
Before an employee (or yourself) embarks on business travel, register it in Companio. To add and subsequently deduct a business travel, follow these steps:
Access the travel section on your dashboard and click the 'add business travel' button. Ensure you upload payment receipts for flight tickets and accommodation (e.g., Airbnb) before the 5th day of the following month. You can find details regarding document requirements here.
Complete the form with travel specifics. Initially, specify whether it's for a member of the company (shareholder or board member) or an employee or contractor. Then, provide origin, destination, and travel dates, state the purpose, and separately list expenses for accommodation and travel in euros. You can include the Daily Allowance for company members or employees (remember, contractors are not eligible for daily allowance, only company members and Companio Work employees).
It's essential to record expenses throughout and after the travel. Upload all travel-related invoices, such as transportation and accommodation costs, to the travel section. Keep in mind that personal expenses, like meals, are omitted.
You can transfer a daily allowance to your personal account.
IMPORTANT: : Ensure all travel expenses, including taxi, plane, boat, and bus fares, are paid using the company card. Personal car rentals are not covered.
For instance, visiting a client in France or sending an employee from your design agency to a web design conference qualifies as deductible expenses. However, to be eligible as a business travel, it must serve a specific corporate purpose and have a reasonable and defined duration.
In simpler terms, you can't label a three-month stay in Bali as a business travel just because you plan to 'write about it on your blog,' even if you own a travel blog. Legitimate business travel involves short-term client collaborations (e.g., a couple of weeks), attending conferences, or holding business meetings with company partners.
Before an employee (or yourself) embarks on business travel, register it in Companio. To add and subsequently deduct a business travel, follow these steps:
Access the travel section on your dashboard and click the 'add business travel' button. Ensure you upload payment receipts for flight tickets and accommodation (e.g., Airbnb) before the 5th day of the following month. You can find details regarding document requirements here.
Complete the form with travel specifics. Initially, specify whether it's for a member of the company (shareholder or board member) or an employee or contractor. Then, provide origin, destination, and travel dates, state the purpose, and separately list expenses for accommodation and travel in euros. You can include the Daily Allowance for company members or employees (remember, contractors are not eligible for daily allowance, only company members and Companio Work employees).
It's essential to record expenses throughout and after the travel. Upload all travel-related invoices, such as transportation and accommodation costs, to the travel section. Keep in mind that personal expenses, like meals, are omitted.
You can transfer a daily allowance to your personal account.
IMPORTANT: : Ensure all travel expenses, including taxi, plane, boat, and bus fares, are paid using the company card. Personal car rentals are not covered.
Updated on: 06/09/2024
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