Does anyone know what is the best way to reimburse an individual in Germany between per diem rates and actual expenses incurred.
I started reading [this article](https://globaltax.services/insights/germany-per-diem-rates-and-how-to-manage-employees-travel-expenses/) but I was keen to know from someone who actually has had to deal with this issue themselves..
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I can’t tell from employer perspective but from employee.
What you pay for the business trip is up to you and your employer. You can (and probably should) pay most things business related. If its a business lunch, you should pay it. If the employee just eats by himself, that’s where the per diem rates comes into play. The per diem rate is for the employee to cover all extra costs he has because of the business trip regarding meals.
You get the per diem rate if your business trip is at least 8 hours. For a day trip or the travel day half a rate (14€) for a full 24h day 28€.
For each meal provided by the employer, a percentage is deducted from the daily rate. 20% for breakfast and 40% each for lunch and dinner.
I.e. for a business trip I need a hotel room and this hotel room includes breakfast, then I submit the hotel costs (incl. breakfast) and get them back and in addition I get 80% from the per diem (20% deducted)
If I were to go out to dinner with the client in the evening, I would get the money back from my employer (because it’s a business expense) and would only get 40% of the per diem rate.
So for everything business related, you can just reimburse your employees, everythin additional is covered by the per diem rate. These rates are there to cover the *extra* cost you have, because you have to work at another place.
Please note, this regulation only applies if the off-site employment does not exceed 3 months (for the same place)