Starting 1 January 2020 the following changes related to business trips come into force:
1. Daily allowances taxation
In order to calculate the non-taxable daily allowance for foreign business trips, fixed salary of an employee shall be compared with the minimum monthly salary or the minimum hourly salary multiplied by a coefficient. Starting 1 January 2020 this coefficient increases from 1.3 to 1.65.
Please be reminded, that from 1 January 2020 the minimum monthly salary increases to EUR 607 and the minimum hourly salary to EUR 3.72.
Daily allowances for foreign business trips shall be non- taxable, if fixed salary is equal to or greater than the amounts provided in the table:
Salary | 2019 | 2020 |
Monthly salary, EUR | 721.50 | 1,001.55 |
Hourly salary, Eur | 4.407 | 6.138 |
2. Daily allowances for Director
Additionally, we would like to note, that this amendment eliminates the possibility of increasing daily allowance rate of foreign business trips for Director of the company up to 100%. This provision shall apply to the calculation of taxable profit for tax year 2020 and beyond.
Please be informed, that Leinonen tax team can provide tax advices related to Personal Income Tax and other taxes which may be relevant to Your business.
Information above was prepared by Leinonen Lithuania Tax Team.
