Circular on. Adjustment of rates for business travel as of 1 January Circular of 20 December 2013
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1 Circular of 20 December 2013 Circular on Adjustment of rates for business travel as of 1 January 2014 In the event of any inconsistency between the Danish and English language versions of the document, the Danish version prevails
2 Indhold Circular on adjustment of rates as of 1 January 2014 for business travel... 3 Transport allowance as of 1 January Hourly and daily allowance as well as percentage allowance in... 6 Denmark and on the Faroe Islands as of 1 January Daily allowance and percentage allowance abroad, including... 7 Greenland as of 1 January Deduction for meals in Denmark, on the Faroe Islands and abroad, including Greenland as of 1 January Hotel allowance in Denmark, on the Faroe Islands and abroad as of 1 January Undocumented nightwork allowance in Denmark, on the Faroe Islands and abroad, including Greenland, as at 1 January
3 Circular on adjustment of rates as of 1 January 2014 for business travel (For all ministries etc.) Under the Ministry of Finance s circular of 30 June 2000 on official travel (Perst. no ) the rates for allowance of additional expenses on business travels are adjusted every 1 January, cf. chapter 7 of the agreement. The agreement has been entered into with the central organisations. The rates in annexes 1, 2, 3, 4 and 6 are changed in 2014 compared to 2013 as a result of changed rates in the tax law. The hotel allowances (annex 5) for 2014 have been adjusted up- or downwards in several cases compared to 2013, as the amount for each country is based on the highest of the average prices for the two most visited cities in the individual country. Add to this the expected increase in the prices of overnight stays in 2014 compared to The amount available for hotel bookings in Denmark is set on the basis of the Statens Indkøb hotel agreement that is to be revised on 1 February For this reason, the amount available for hotel bookings in Denmark is not yet known. It will be announced in a separate circular when available. Until then, the 2013 rates apply. The rates as of 1 January 2014 appear from: Annex 1: Transport allowance Annex 2: Hourly and daily allowance as well as percentage allowance in Denmark and on the Faroe Islands Annex 3: Daily allowance and percentage allowance abroad, including Greenland Annex 4: Deduction for meals in Denmark, on the Faroe Islands and abroad, including Greenland Annex 5: Hotel allowance in Denmark, on the Faroe Islands and abroad Annex 6: Undocumented nightwork allowance in Denmark, on the Faroe Islands and abroad, including Greenland 3
4 Commencement The Circular shall come into force on 1 January At the same time, the Ministry of Finance s circular 9056 of 18 February 2013 (Modst. no. 2013) shall be revoked. The Ministry of Finance, the Agency for the Modernisation of Public Administration 20 December 2013 On behalf of the Ministry By authority David Sembach 4
5 Annex 1 Transport allowance as of 1 January 2014 Cars and motorcycles Section 14. Standard approved driving: DKK 2.10 per km Section 15. Driving as authorised: Up to 20,000 km in a calender year DKK 3.73 per km More than 20,000 km in a calender year DKK 2.10 per km Section 16. Driving abroad: DKK 2.10 per km Mopeds and bicycles Section 17. An allowance of DKK 0.51 per km is granted. 5
6 Hourly and daily allowance as well as percentage allowance in Denmark and on the Faroe Islands as of 1 January 2014 Annex 2 A. Hourly and daily allowance Daily allowance 1) DKK Hourly allowance 1) DKK I Unreduced rates ) 3) 2) 3) II Rates reduced by 1/4 in Denmark ) 3) 2) 3) III Rates reduced by 1/6 on the Faroe Islands ) 3) 2) 3) The reduced rates apply to foreign postings as of the 29th day, cf. Section 35(1) of the agreement on official travel (Perst. no ). B. Percentage allowance 1) The percentage allowance constitutes DKK per 24 hours. 1) Hourly and daily allowance can never be granted together with percentage allowance. Percentage allowance shall only be granted where it is stated in Section 20 (2) of the agreement on official travel. 2) The rates for hourly and daily allowance are higher where a local agreement to that effect has been entered into under Section 22 (3) of the agreement on official travel. However, the rates may not exceed the following amounts: I Unreduced rates: Daily allowance DKK 464 and hourly allowance DKK II Rates reduced by 1/4 in Denmark: Daily allowance DKK 348 and hourly allowance DKK III Rate reduced by 1/6 on the Faroe Islands Daily allowance DKK and hourly allowance DKK ) Deduction for meals shall be made in accordance with annex 4. 6
7 Annex 3 Daily allowance and percentage allowance abroad, including Greenland as of 1 January 2014 The daily allowance rate is DKK 464 and the percentage allowance is DKK abroad and in Greenland as of 1 January This does not apply to the countries below, where the following rates apply: Daily allowance 1) 2) 3) 1) 3) Percentage allowance DKK DKK Europe Bulgaria Slovakia Africa Mozambique South Africa Tunisia Zambia Zimbabwe Egypt America Bolivia Columbia Cuba Asia Bangladesh Bhutan India Iran Malaysia Nepal Pakistan Thailand ) Hourly and daily allowance can never be granted together with percentage allowance. Percentage allowance shall only be granted where it is stated in Section 21 (2) of the agreement on official travel. 2) Deduction for meals shall be made in accordance with annex 4. 3) The daily allowance rate and the percentage allowance (in this case 30 percent) are higher if, under Section 22 (3) of the agreement on official travel, a local agreement has been entered into about higher daily allowance rates. However, the daily allowance cannot exceed DKK 464, and the percentage allowance cannot exceed DKK
8 Annex 4 Deduction for meals in Denmark, on the Faroe Islands and abroad, including Greenland as of 1 January 2014 Hourly and daily allowance rates are to be reduced if the employee receives free meals in connection with the official journey. The deduction will be made in the specific applicable hourly and daily allowance rate, cf. annex 2, note 2 and annex 3, note 3. The deduction is as follows: Breakfast 15% Lunch 30% Dinner 30% All meals 75% If there is a third decimal of 5 or more, the sum is rounded to the nearest whole øre amount, otherwise down. Example 1 In case of an unreduced rate of DKK 398 the deductions are as follows: Breakfast DKK Lunch DKK Dinner DKK All meals DKK Example 2 In case of an unreduced rate of DKK 464 the deductions are as follows: Breakfast DKK Lunch DKK Dinner DKK All meals DKK
9 Annex 5 Hotel allowance in Denmark, on the Faroe Islands and abroad as of 1 January 2014 A. Denmark and the Faroe Islands I Unreduced rates: Denmark: The amount available for hotel bookings in Denmark is set on the basis of the Statens Indkøb hotel agreement that is to be revised on 1 February For this reason, the amount available for hotel bookings in Denmark is not yet known. It will be announced in a separate circular when available. Until then, the 2013 rates apply. The Faroe Islands DKK 1,020 II Rate reduced by 1/6 on the Faroe Islands DKK 850 The reduced rates apply to foreign postings as of the 29th day, cf. Section 35(2) of the agreement on official travel (Perst. no ). B. Abroad: Belgium EUR 175 Canada CAD tax Finland EUR 150 France EUR 170 Greece EUR 180 Netherlands, the EUR 160 Ireland EUR 110 Iceland ISK 43,000 Italy EUR 160 Luxembourg EUR 150 Norway NOK 1,605 Portugal EUR 100 Switzerland CHF 235 9
10 Spain EUR 125 Great Britain GBP 150 Sweden SEK 1,740 Germany EUR 100 USA (New York and Washington D.C.) USD tax USA (other) USD tax Austria EUR 130 In case of foreign postings, the amount available for hotel bookings abroad and in Greenland is reduced by one-fourth as of the 29th day, cf. Section 35(2) of the agreement on official travel (Perst. no ). 10
11 Annex 6 Undocumented nightwork allowance in Denmark, on the Faroe Islands and abroad, including Greenland, as at 1 January 2014 I Unreduced rate: DKK II Rate reduced by 1/4 in Denmark: DKK III Rate reduced by 1/6 on the Faroe Islands: DKK IV Rate reduced by 1/4 abroad, including Greenland: DKK The reduced rates for undocumented night work allowance apply to foreign postings as of the 29th day, cf. Section 35(2) of the agreement on official travel (Perst. no. 057). 00). 11
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