Payment for meals during a business trip

One of the key issues troubling employees is meal reimbursement during business trips. On business trips the employee can’t have lunch at home, drop by a familiar store, or bring food along, often having to spend more on meals than usual. We’ll clarify whether the employer is required to cover these expenses. And if you need help with organizing business trips, use the TravelHub service.

Is the Employer Required to Cover Meal Expenses?

According to Article 208 of the Labor Code of Belarus, the employer must reimburse certain expenses incurred during a business trip – namely, travel to the destination and accommodation – and also pay a per diem for staying away from home. By agreement, other expenses may also be reimbursed. 

The Role of Per Diem on Business Trips

Per diem is intended to offset meal expenses and other daily costs incurred by an employee during a business trip – its amount is set by the Government. If either the sending or hosting party provides the employee with three meals and transportation at the destination, or if the business trip is to the employee’s home town with arranged three-meal service, then per diem is not paid (except for travel days). If the company wishes to economize, consider using group booking of airline tickets.

Taxation of Per Diem Expenses

Under the legislation of the Republic of Belarus, income tax (in the Russian Federation — PIT) is not levied on per diem if it does not exceed the established limit. Any amount exceeding the maximum is subject to income tax.

Booking a Hotel with Meals

Hotels offer various options for business travelers — breakfast, half-board, or full-board (this is specified when booking hotels). All of this can be arranged together with the employee’s room. The rule remains the same: if the employer has paid for accommodation with three meals in addition to providing transportation, then the employee does not receive per diem. In all other cases, per diem is paid. Check whether meals are included in the room rate before booking a hotel. 

Meals on Transportation

The employer may, at his discretion, cover meals on transportation (this must be decided before searching for airline tickets), but this does not release him from the obligation to pay per diem for travel days. If meals are included in the ticket price, that cost is factored into the transportation reimbursement amount.

Business Dinners

Business dinners, meetings, or receptions during a business trip are considered representational expenses if supported by documentation: an order authorizing the expenditure, an event program, a report, and a receipt. In accordance with tax legislation, such expenses should not exceed 1% of the revenue from the realization of the company’s property rights.

Supporting Documents

If you need to account for meal expenses during a business trip, be sure to keep all receipts for food purchases or orders at dining establishments, and attach them to your expense report afterward.