Everything an accountant needs to know about accounting for foreign business trips

Determination of daily allowance

Daily travel allowance is an additional expense for an employee who performs his job duties outside his main place of work, for renting housing, food, etc. The daily allowance rate for one day is determined in the local documents of the enterprise.

These funds are issued to the employee before the business trip based on the expected duration of the trip. The employee does not need to document the expenditure of these funds.

If the enterprise uses a travel certificate, then the number of business trip days for calculating daily allowance can be determined by the marks on it.

When this document is not issued, the number of days of a business trip is determined by the employee’s travel documents (tickets) or hotel receipts, etc.

If an employee is delayed during a business trip for reasons beyond his control, the administration must compensate the employee for all these days, upon provision of documents confirming this fact.
In this case, daily allowances are paid for weekends and holidays, if such time falls during the business trip. Attention! The Labor Code of the Russian Federation establishes that the employer is obliged to compensate additional expenses for a business trip (per diem) to his employee, therefore it is impossible not to pay per diem while on a business trip.
They must be paid even if the employee provides documents for housing and food, because the concept of additional expenses includes not only this. The only way in this case to reduce such costs is to set a small daily allowance in the company’s local documents. But it is also impossible to set the daily allowance at 0 rubles. This will be equivalent to their non-payment.

Travel accounting

If the head of a company sends an employee on a business trip, he must reflect the following transactions in business accounting:

Dt 71 Kr 50 – payment of travel allowances to the employee is reflected;
Dt 71 Kr 51 – reflects the transfer of travel allowances to the salary card;
Dt 10, 20, 23, 25 Kr 71 - assignment of the amount of expenses for remuneration of labor on a business trip;
Dt50, 51 Kr 71 – refund of unused amounts was made.

Failure to pay travel allowances to employees, as well as failure to pay any other mandatory transfers in the form of wages, benefits, partially or fully for organizations, is punishable by a large fine.

In order to calculate salaries during a business trip, an accountant must focus on the current regulatory framework.

Important changes in 2021

In 2021, the administration of insurance premiums was transferred from extra-budgetary funds to the tax authorities. In this regard, important changes have occurred in relation to daily allowances.

The amount of these payments is determined by each business entity independently and is enshrined in its regulations. But when calculating personal income tax, daily allowances were not taxed only within the limits of current norms. This rule did not apply to insurance premiums.

If a business trip is for 1 day, daily allowance must also be paid, and this rule applies to compensation for these expenses.

Attention! From 2021, if the daily allowance for a business trip is more than 700 rubles (in Russia) or 2,500 rubles (foreign business trips), then the accountant must calculate not only personal income tax, but also insurance payments for pension, medical and social insurance from the excess of these amounts.

Only insurance premiums for injuries are not subject to excess daily allowance. The old rules apply here.

Changes in business trips from 01/01/2017 New daily allowance standards

The daily allowance rates for insurance premiums will change from 01/01/2017.
(Federal Law No. 243 dated July 3, 2017). This change occurs due to the fact that daily allowances are subject to insurance contributions . 08/30/2016
700 rubles in the Russian Federation and 2500 rubles abroad - this is the amount of daily allowance in 2021 that is not subject to contributions. If the daily allowance significantly exceeds these amounts, then they are subject to insurance contributions.

Let’s assume that an organization pays for a day of business trip to the Russian Federation at the rate of 900 rubles/day. The duration of the business trip was 5 days. Contributions from daily allowance are calculated in 2021. as follows: 5 days of business travel are multiplied by 900 rubles per day. The daily allowance is 4,500 rubles.

Next, the non-taxable amount of money is calculated from the total amount: 700 rubles multiplied by 5 days. It turns out 3500 rubles.

From the total daily allowance of 4,500 rubles, a non-taxable amount of 3,500 rubles is deducted. The difference of 1000 rubles is subject to insurance premiums.

To find out the amount of daily allowance contributions, you need to multiply 1000 rubles by the contribution rate in 2021. For example, the rate will be 20%, which means the amount of contributions is 200 rubles. In 2021 There were no restrictions on per diem, and any amounts were not subject to insurance premiums.

The amount of daily allowance in Russia, established in 2017.

An organization/firm has the right to set any amount of payments per day when traveling on a business trip in the Russian Federation or abroad; this amount is not limited by law. That is, the standardization of daily allowances for business trips, as well as similar trips for employees in 2021. does not apply (Article No. 346.16, paragraph 1, subparagraph 13 of the Tax Code of the Russian Federation).

This suggests that the organization itself has the right to choose the amount of travel allowances per day, both when traveling in Russia and abroad. The entire amount due for a business trip is taken into account in expenses under the simplified tax system. The amount of daily allowance must be specified in the local regulations of the organization. It is worth remembering that, despite the fact that the amount of travel allowance paid per day for the purpose of calculating the Unified National Tax under the simplified tax system is not standardized, paragraph 3 of Article No. 217 of the Tax Code of the Russian Federation establishes daily allowance standards that are used for the purpose of calculating personal income tax (for trips within the Russian Federation - 700 rubles /day, for foreign business trips - 2500 rubles /day).

If the daily allowance is paid by the organization in excess of that indicated above, then the excess amount is subject to personal income tax. Daily allowance for business trips in 2021 abroad - 2500 rubles/day are not subject to personal income tax, amounts in excess are subject to tax. As for insurance premiums, as we said above, in 2021. The contribution limit is the same as for personal income tax - 700 rubles (business trip within the Russian Federation) and 2,500 rubles (foreign business trip).

Daily allowance for business trips in 2021 by region

In 2021 Across the Russian Federation and regions, the amount of travel allowances per day does not differ. At the same time, travel expenses for daily allowance in 2021. are not standardized, based on the rules of the Tax Code. However, there are certain rules for collecting insurance premiums, as well as personal income tax on daily allowances.

Accounting for daily allowances in 2021

Under the simplified tax system in 2021 expenses for payments per day on a business trip are fully taken into account in the amount in which they are indicated in the local act. Therefore, if the organization indicated in the acts the amount of daily allowance, for example, 3,000 rubles, then it can be paid to the employee and fully taken into account in expenses under the simplified tax system (if the object is “income minus expenses”).

Calculation of travel allowances in 2021

Calculation of travel allowances in 2021 is very simple: the established amount of travel allowance per day must be multiplied by the number of days of the business trip.

After this, it is necessary to deduct personal income tax according to the limits from the amount received. The employee receives in his hands or the resulting amount of travel allowance is transferred to his card.

Daily accounting entries in 2021:

As of the date of issue to the employee, a statement of funds: D 71 K 50-1 - Cash was issued to the employee for expenses due to being sent on a business trip (in terms of daily allowances).
As of the date of approval of the advance report: D 20 (44, 91-2, 08 and others) K 71 - Thus, business trip expenses were reflected (in terms of daily allowance).
If the daily allowance is issued in a larger amount than the established norm, non-taxable with personal income tax: D 70 K 68 - Personal income tax is withheld directly from the amount of daily allowance paid to the employee.

Post:

Comments

Catherine

April 13, 2021 at 3:21 pm

The daily allowance rates for insurance premiums will change from 01/01/2017. (Federal Law No. 243 dated July 3, 2017).

Typo in the link to document Federal Law No. 243 dated 07/03/17, you need Federal Law No. 243 dated 07/03/16

Tatiana

October 6, 2021 at 9:53 pm

What are you writing about here!!! What an unrealistic daily allowance. State employees are paid 100 per day! This means that with these pennies you have to somehow eat a piece of black bread and water. This is how they fed only in CONCENTRATION CAMPS. This means our state is a concentration camp, because they are treated like cattle!

Daily allowance for business trips in Russia

The New Year did not bring the abolition of daily allowance expected by many employers. Currently, employee travel must be accompanied by payment. In addition, these amounts must be paid for one-day trips, as well as when the employee performs labor functions, if his employment contract specifies the traveling nature of the work.

Amount of daily allowance – norms for Russia

The company administration, as before, determines the amount of daily allowance independently, fixing it in the Collective Agreement, Regulations on Business Travel or other local regulations of the company. There are no upper limits limiting these sizes.

Attention! When assessing personal income tax and calculating insurance premiums, a standard of 700 rubles applies. Above this amount, daily allowances are subject to income tax.

One day business trip

Since the previously effective Resolution was canceled, and the new norms do not establish a minimum duration of a business trip, a one-day trip is also recognized as such. The Labor Code of the Russian Federation establishes that registration of a business trip must be accompanied by the payment of daily allowances.

Daily allowance for business trips abroad

An employee’s business trip can be carried out outside the country, and during this, he must also be given a daily allowance.

Payment standards for trains abroad

Daily allowance rates for business trips abroad are also established by the business entity independently. However, in these cases, if the organization belongs to the public sector, Government Resolution No. 812 should be taken into account, which establishes the maximum daily allowance for each country, expressed in US dollars.

Other companies, when establishing their own standards, can use the provisions of this act.

Attention! For personal income tax purposes and the calculation of insurance premiums, the standard is 2,500 rubles. In excess of this, amounts issued will be subject to taxes.

In what currency should I pay?

When deciding in what currency, daily allowances should be issued for business trips abroad, you should take into account the days when the employee will be in his home country, and the days when he will be traveling abroad.

The law establishes that for days spent on the territory of one’s own state, an employee receives daily allowance in rubles, and for days on a business trip abroad in the currency of the country where he is sent. It should be taken into account that on the day of departure from the country, daily allowances are calculated in foreign currency, and on the day of arrival - in rubles.

The company has the right in its regulatory documents to establish a different procedure for determining the currency of daily allowance.

Payment procedure

Payment of daily allowances can be made either directly in foreign currency or in rubles in the equivalent of the applicable currency. This issue is resolved by the company management independently.

In the latter case, the employee will have to independently contact the relevant institutions and exchange the money received for foreign currency.

How to take into account exchange rate differences

Exchange rate differences on a trip abroad may arise due to the fact that the Central Bank of Russia can set different exchange rates on the day the money is issued and on the day the advance report is submitted.

If a negative exchange rate difference is formed, it should be taken into account as part of the company’s other expenses, and a positive one – as part of other income.

An employee bought currency while on a trip

The organization may not issue the employee a daily allowance in foreign currency, but may give instructions to make the exchange independently upon arrival in the country of destination. The supporting document in this case is an exchange certificate from the bank, which indicates the exchange rate and the amount of the purchased currency. But expenses in foreign currency, for example, for a hotel, are already converted into rubles based on the established exchange rate of the Central Bank.

Composition of expenses for business trips abroad

According to the Regulations, employees are sent on business trips based on the employer’s decision for a certain period of time to fulfill an official assignment outside their place of permanent work. In this case, the duration of the business trip is set by the employer, taking into account the volume, complexity and other features of the official assignment ( clauses 3 , 4 ).

Seconded workers are compensated ( clause 11 of the Regulations ):

– travel and rental expenses;

– additional expenses associated with living outside your permanent place of residence (daily allowance);

– other expenses incurred by the employee with the permission of the head of the organization.

When sending an employee on a business trip to the territory of a foreign state, the following are additionally reimbursed ( clause 23 of the Regulations ):

a) costs for obtaining a foreign passport, visa and other travel documents;

b) mandatory consular and airfield fees;

c) fees for the right of entry or transit of motor transport;

d) expenses for obtaining compulsory medical insurance;

e) other obligatory payments and fees.

All listed expenses are taken into account when calculating the taxable base for income tax on the basis of paragraphs. 12 clause 1 art. 264 Tax Code of the Russian Federation .

In accordance with clause 26 of the Regulations , upon returning from a business trip, the employee is obliged to submit to the employer within three working days an advance report on the amounts spent in connection with the business trip and make a final payment on the cash advance issued to him before leaving for the business trip for travel expenses. Attached to the advance report are documents on the rental of accommodation, actual travel costs (including payment for services for issuing travel documents and providing bedding on trains) and other expenses associated with the business trip.

If the supporting documents attached to the advance report are drawn up in a foreign language, they must be translated into Russian. The translation can be done either by a professional translator or by a specialist from the organization itself ( Letter of the Ministry of Finance of Russia dated April 20, 2012 No. 03-03-06 / 1 /202 ).

Features of trips to the CIS countries

When traveling to countries that are part of the CIS, a stamp is not placed in the passport. Therefore, the date of border crossing in this case is determined by travel tickets, based on the date and time of arrival in the destination country.

Thus, the day on which the vehicle (train, bus, plane, etc.) arrived at its destination in a foreign country is considered the day of entry.

Attention! Daily allowances for a business trip in the CIS are paid according to the norm for a foreign trip. The days on which the vehicle arrived at its destination in Russia are considered the days of return, and daily allowances for them are paid according to the norms for trips within the country.

Per diem abroad 2021: calculation nuances

When paying daily allowance to a posted worker, the following nuances must be taken into account:

the date of crossing the border when traveling to your destination is counted as a business trip abroad.
The date of crossing the border upon return is taken into account as a regular business trip.
Daily allowances abroad in 2021 are tax-free only if they do not exceed 2,500 rubles. If their size is larger, then everything above the specified amount is subject to taxation.
despite the fact that the amounts are indicated in dollars, they can also be paid to the employee in ruble equivalent.
The exchange rate is taken in the amount established on the last day of the month in which the employee submitted the advance report.

These nuances are important to consider for the correct taxation procedure for an organization and a business traveler.

For example, a business traveler travels by train from Moscow to Helsinki. Departure at 19.15 on October 10 from Moscow and arrival in Helsinki on October 11 at 15.30. Crossing the border at 03.15. Payment will be made for October 10 - 700 rubles, for October 11 - 2500 rubles.

The employee returned from a trip and left the same day

When an employee goes on a business trip, a situation may arise in which he returns from one trip in the morning and leaves for another in the evening.

The law does not prohibit doing this, although it does not establish exactly how this should be formalized. As a result, two methods can be used.

The first way is two different business trips. The employer must issue a full package of documents for a new trip - a business trip order, a travel certificate, a work assignment (both if necessary). With this design option, special attention must be paid to the daily allowance.

The employer must make this payment for each day of a business trip, including days on the road. The day on which both trips overlap is subject to double payment - since it is the final day of the previous trip and the first day of the next one. However, in this case, a dispute will likely arise with the tax authorities due to excess payments.

The second way is to combine trips. If it is immediately known that the employee will have to visit several places at once, then a full package of documents is drawn up for the business trip. All information is entered into it, destinations and goals are indicated separated by commas, and the total duration is indicated.

Attention! However, the law does not limit the duration of the trip, leaving it at the discretion of the company. Daily allowances are calculated and paid immediately for the entire duration of the trip. If during a business trip you will visit two or more countries, the trip is divided into segments, and the daily allowance for each is calculated based on the established standards for that country.

How to report a trip

Since 2015, the law has allowed not to formalize an official assignment. In this case, to confirm the total duration of the trip, you need to use travel tickets, boarding passes, hotel bills and other documents.

If the employee was unable to provide them, then you can request from the receiving company an official document confirming the work of the business traveler, with a seal and signatures.

Starting from 2021, it is allowed to use personal vehicles when traveling to and from a business trip. In this case, fuel receipts and a memo addressed to the manager are used as confirmation of the travel period.

Thus, the period of days for which daily allowance is paid on a business trip is documented by forms provided by the employee.

But the employee is not obliged to provide documents that would confirm the expenditure of daily allowances, and in general the very fact that they were used. By law, the employer must make this payment, but what the employee spends it on is his own business.