What is a business trip
A business trip is a trip by an employee by order of the employer for a certain period of time to fulfill an official assignment outside the place of permanent work (Article 166 of the Labor Code).
A trip to a branch of your organization that is located outside your permanent place of work is also considered a business trip. This is enshrined in paragraph 3 of the Regulations on the specifics of sending employees on business trips, approved by Decree of the Government of the Russian Federation dated October 13, 2008 No. 749 (hereinafter referred to as the Regulations on Business Travel).
Automatically calculate the salary of a posted worker according to current rules Calculate for free
Postings for travel expenses: return of unspent amounts and reimbursement of overexpenses
Within 3 working days after the end of the business trip, the employee sends the employer an advance report and supporting documents, against which the expenses issued to the employee as part of the advance will be verified (clause 26 of the Regulations on Business Travel, approved by Decree of the Government of Russia dated October 13, 2008 No. 749).
Based on the results of studying the report and the documents submitted with it, the accounting department will determine 3 types of monetary amounts:
1. Spent by the employee and confirmed by the advance report and supporting documents.
2. Amounts corresponding to daily allowance limits.
3. The amount initially given to the employee before the business trip.
Next, the sum of the indicators for points 1 and 2 is subtracted from the indicator for point 3.
If the result is positive, then the employee will have to return the corresponding amount to the company’s cash desk.
The following entries are recorded in the accounting registers:
- Dt 50 Kt 71 - when returning funds to the cash desk; or
- Dt 51 Kt 71 - when returning funds to the company’s bank account.
If the result is negative, the company must reimburse this amount, since the employee will be considered to have spent his money.
In this case, the transaction will be classified as travel expenses - the entries for it are the same as in the case of payment of advances and daily allowances: Dt 71 Kt 50.
Who can be sent on a business trip
The employer has the right to send on a business trip a person who usually works in the same building or in the same city: an engineer, an accountant, etc. If the employee’s work is initially traveling in nature, a business trip is not issued for him. This applies, for example, to couriers and truck drivers.
An employee who works from home can be sent on a business trip on a general basis. This follows from Article 310 of the Labor Code, which states that homeworkers are subject to labor legislation and other acts containing labor law norms. This means that the provisions on business trips are fully applicable to homeworkers.
Please note: only employees who are on staff are allowed to be sent on a business trip. Specialists hired under a civil contract cannot be seconded.
Duration of business trip
The employer is free to set any duration of the business trip based on the volume, complexity and other nuances of the upcoming trip (clause 4 of the Business Travel Regulations).
However, the maximum duration is not indicated anywhere. Thus, a business trip can last as long as desired, up to several months or years.
The issue of minimum duration has not been fully resolved. Strictly speaking, a business trip can be considered a trip lasting more than one day. A one-day trip does not count as a business trip. This was recognized by the Supreme Arbitration Court of the Russian Federation in Resolution No. 4357/12 dated September 11, 2012 (see “SAC: payments in lieu of daily allowances for one-day business trips are not subject to personal income tax”).
But in practice, companies and entrepreneurs often send employees on day trips, and arrange them in the same way as regular business trips. In other words, they pay daily allowances, reimburse travel costs, etc. We will discuss below how to properly account for such expenses.
Amount and norms of daily allowance for business trips
Daily allowance must be paid for each day of a business trip, including weekends and holidays, as well as for days on the road (clause 11 of the Regulations on the specifics of sending employees on business trips, approved by Decree of the Government of the Russian Federation of October 13, 2008 No. 749; hereinafter referred to as the Regulations about business trips).
The amount of daily allowance is not limited. Each employer can set the amount of daily allowance that it considers necessary. The main thing is to reflect the chosen option in the organization’s local regulations, for example, in the regulations on business trips.
Compose HR documents using ready-made templates for free
REFERENCE . The employer has the right to approve different daily allowance amounts for certain categories of employees. In particular, the director's per diem may be higher than the manager's per diem. When traveling abroad, the amount of daily allowance may differ depending on the country to which the employee is sent.
However, there are standards that apply when calculating personal income tax and insurance premiums. Daily allowances within the limits of the standard are exempt from personal income tax and contributions, and personal income tax and contributions must be charged on the excess amount. The standards for business trips in Russia will differ from the standards established for business trips abroad (subclause 3 of Article 217 of the Tax Code of the Russian Federation and clause 2 of Article 422 of the Tax Code of the Russian Federation).
Business trip around Russia
Daily allowances are exempt from personal income tax and insurance contributions up to 700 rubles. for each day you are on a business trip in the Russian Federation.
Let's give an example. Let’s say an employee was on a business trip for 5 days. He was accrued daily allowance at the rate of 1,000 rubles. per day. The daily allowance was 5,000 rubles (1,000 rubles x 5 days). The amount of 3,500 rubles (700 rubles x 5 days) is exempt from income tax. The accountant included in the tax bases for personal income tax and contributions a daily allowance in the amount of 1,500 rubles (5,000 rubles - 3,500 rubles).
Business trip abroad
Daily allowances are exempt from personal income tax and contributions up to 2,500 rubles. for each day you are on a business trip abroad.
IMPORTANT . When an employee goes on a business trip abroad, the day of crossing the border of the Russian Federation is considered as a day spent on a business trip abroad. When returning from such a trip, the day of crossing the border of the Russian Federation is considered as a day spent on a business trip in Russia. The dates of border crossing must be determined by the marks made by border guards in the international passport (clause 18 of the Regulations on Business Travel).
Let's give an example. Let’s say an employee was on a business trip abroad for 6 days and crossed the border of the Russian Federation on the first and last days of the trip. He was accrued daily allowance at the rate of 3,000 rubles. per day. The daily allowance was 18,000 rubles (3,000 rubles x 6 days). The following amount is exempt from income tax: for the first 5 days - 12,500 rubles (2,500 rubles x 5 days); per day of return to Russia - 700 rubles. The accountant included in the tax bases for personal income tax and contributions a daily allowance in the amount of 4,800 rubles (18,000 rubles - 12,500 rubles - 700 rubles).
To CIS countries
The same rules apply here as for other business trips abroad. But there is one peculiarity: when crossing the border of the Russian Federation, border guards do not put any marks on the international passport. Therefore, the date of crossing the border is determined by travel documents (clause 19 of the Regulations on Business Travel).
An example of calculating daily allowance for a business trip to Kazakhstan in 2021
The employee went on a business trip to Kazakhstan on May 17, 2021, and returned back on May 21, 2021. The duration of the business trip was 5 days. The employee was accrued daily allowance at the rate of 3,000 rubles. in a day. The daily allowance was 15,000 rubles (3,000 rubles x 5 days).
From the travel documents it follows that on May 17 the employee left Moscow by train at 19:20. The train arrived at the border with Kazakhstan (Petukhovo station) on May 19 at 09:00. This means that the dates May 17 and May 18 are considered days spent in Russia. And the date May 19 - the day of crossing the border - is considered a day spent in Kazakhstan.
The worker returned back on May 21 by plane. Departure from Almaty took place at 15:00, and arrival in Moscow at 22:00. This means that the date May 21st is considered a day spent in Russia.
It turns out that the days spent in Russia are May 17, May 18 and May 21 (a total of 3 days), and the days spent in Kazakhstan are May 19 and May 20 (a total of 2 days).
The following amount is exempt from income tax: for 3 days in Russia - 2,100 rubles (700 rubles x 3 days); for 2 days in Kazakhstan - 5,000 rubles (2,500 rubles x 2 days).
The accountant included in the tax bases for personal income tax and contributions a daily allowance in the amount of 7,900 rubles (15,000 rubles - 2,100 rubles - 5,000 rubles).
Fill out and submit 6‑NDFL and 2‑NDFL for free through the EDF operator
First and last day of the trip
The first day of a business trip is the date of departure of a train, plane, bus or other vehicle. The last day of a business trip is the date of arrival of the corresponding vehicle at the locality where the place of permanent work is located.
When the vehicle departs (or arrives) before 24 hours inclusive, the day of departure (or arrival) is considered the current day, and from 00 hours onwards - the next day. If a station, pier or airport is located outside a populated area, the time required to travel to (or from) the station, pier or airport is taken into account.
What documents to submit when traveling on a business trip
First of all, it is necessary to draw up an order or instruction from the manager about sending him on a business trip.
Previously, when sending employees on business trips, employers were required to approve job assignments and issue travel permits. However, now there is no need to do this. From this date, the actual length of stay of the employee at the place of business trip is determined by travel tickets presented upon return from the business trip. If the employee is sent on a business trip by personal transport, then the actual length of stay at the place of business trip the employee must indicate in the memo.
Note that for organizations that regularly send employees on business trips, it is better to prepare a local regulatory act, for example, a regulation on business trips. It should contain all the details: the amount of daily allowance, the amount of compensation for business trip expenses, etc. Such a document can become one of the decisive arguments in favor of the taxpayer during audits or in court.
Compose HR documents using ready-made templates for free
Types of travel expenses
An employer who sends an employee on a business trip is obliged to reimburse him for travel expenses. These expenses are listed in Article 168 of the Labor Code of the Russian Federation. These include:
- fare;
- housing rental costs;
- daily allowance (i.e. additional expenses associated with living outside the place of permanent residence);
- other employee costs agreed with the employer.
Thus, daily allowances are one of the types of travel expenses that an organization or individual entrepreneur must compensate to its employee.
Calculate the salary of a posted worker using the web service Calculate for free
How to fill out a time sheet
In the working time sheet (unified forms No. T-12 and T-13), working days that fell during a business trip are indicated by the code “K” or its digital equivalent “06”. The number of hours worked is not entered.
If during a business trip the employee worked on his day off or on a holiday, the report card is marked with the code “РВ” or its equivalent “03”. In the column reserved for the number of hours worked, the value previously agreed upon with the employer is indicated. If there was no agreement to work on a day off, the employer has the right not to indicate the number of hours in the timesheet and, as a result, not to pay for this time. This is stated in the letter of the Ministry of Labor of Russia dated February 14, 2013 No. 14-2-291.
A situation is possible when on a day off the employee was on the road, that is, either going to the place of business trip or returning back. It is not entirely clear whether this time should be counted as worked. In our opinion, a road that falls on Saturday, Sunday or a holiday is nothing more than work. Therefore, in the work time sheet you should enter “РВ” (or “03”) and the number of hours actually spent on the road.
Keep timesheets for free in an accounting web service
Salary during a business trip
The business trip period is paid not in the same way as regular work, but according to average earnings (Article 167 of the Labor Code of the Russian Federation). Whatever the work schedule, average earnings are calculated based on the actual accrued wages and actual time worked for the 12 calendar months preceding the month when the business trip began.
Example
The employee was on a business trip from June 21 to June 25, 2021 (five working days).
All payments received by the employee for the period from June 2021 to May 2021 inclusive (12 months) are shown in table 1. Table 1
Payments to the employee for the period from June 2021 to May 2021
Month of billing period Type of payment Amount (rub.) June 2020 salary 30 000 July 2020 salary 30 000 August 2020 salary 30 000 September 2020 salary 30 000 October 2020 salary 30 000 November 2020 salary 30 000 December 2020 salary 5 714 sick leave 19 000 January 2021 salary 40 000 February 2021 salary 40 000 March 2021 salary 40 000 April 2021 salary 40 000 May 2021 salary 40 000 Total: 404 714 To calculate the average earnings, the accountant found out that out of the 12 months preceding the business trip, the employee worked only 11 fully, and from December 3 to December 25, 2021 (17 working days) was on sick leave. Sickness time must be excluded from the calculation period, and temporary disability benefits will not be included in the calculation. As a result, the average earnings were 385,714 rubles (404,714 - 19,000).
The accountant then calculated the number of working days in the billing period. It was 249 days. The number of working days taken into account when calculating average earnings is 232 (249 - 17). The average daily earnings is 1,662.56 rubles (385,714 rubles: 232 days). Salary during a business trip - 8,312.8 rubles. (RUB 1,662.56 x 5 days).
Note that some companies pay for business trips not according to average, but according to actual earnings. This option, although not entirely correct, is acceptable. The main thing is that the actual earnings during the business trip are not less than the average earnings, because otherwise the employee’s rights will be violated. To prevent this from happening, it is better to compare two salary values for each business trip: the first - based on average earnings, the second - based on actual earnings. And if the first value is not greater than the second, you can pay for the business trip based on the salary.
If a person worked on a business trip on his day off, and this is reflected in the timesheet, then such work must be paid double. There is an alternative option: at the employee’s request, provide payment in a single amount and give additional days off (Article 153 of the Labor Code of the Russian Federation).
Salary on a business trip: postings
While on a business trip, the employee also receives a salary. True, it is calculated not as usual, but according to average earnings (clause 9 of the Regulations). In addition, weekends while a person is on a business trip are paid double or single when subsequent time off is granted, provided that the accounting documents are correctly filled out (clause 5 of the Regulations, Article 153 of the Labor Code of the Russian Federation).
Find out about the nuances of paying for a business trip on weekends here.
Payroll for a posted employee is calculated using the following entries:
- Dt (08, 20, 23, etc.) Kt 70 - calculation of wages calculated based on average earnings;
- Dt 70 Kt 68 - personal income tax withholding;
- Dt (08, 20, 23, etc.) Kt 69 - calculation of insurance premiums.
The transfer of wages to the employee is made using correspondence accounts:
- Dt 70 Kt 50 - if the employee receives his salary at the cash desk;
- Dt 70 Kt 51 - if the salary is transferred to the card.
Read more about the nuances of accounting for travel expenses in the article “Procedure for accounting for travel expenses.”
Reimbursement of travel expenses and daily allowances
The employer is obliged not only to pay the employee a salary during the business trip, but also to reimburse travel expenses. They are listed in Article 168 of the Labor Code of the Russian Federation. These are daily allowances, travel costs, rent for living quarters and other costs agreed with the employer. Let's look at each type of expense separately.
Daily allowance
The employee is entitled to daily allowance for each day he is on a business trip, including weekends and holidays, as well as for days on the road (clause 11 of the Business Travel Regulations).
Each employer is free to set the amount of daily allowance that it considers necessary. At the same time, it is not forbidden to approve different daily allowance amounts for different categories of workers. For example, a manager's per diem may be higher than an engineer's per diem. An employee returning from a business trip is not required to report on what he spent his daily allowance on. Simply put, the employee does not need to provide primary documents and an advance report on daily allowance to the accounting department.
In tax accounting, daily allowances are written off as expenses without limitation. Daily allowances are exempt from personal income tax within the limit: for business trips within the country - in the amount of 700 rubles. for each day, for business trips abroad - in the amount of 2,500 rubles. for every day. If the company has established a daily allowance in excess of these amounts, then you must pay personal income tax on the excess. In the income certificate, the amount of excess daily allowance should be reflected as “other income”.
For business trips lasting one day (so-called “one-day business trips”), strictly speaking, daily allowances are not required. Despite this, most companies pay them. The Ministry of Finance of Russia, in letter dated May 17, 2018 No. 03-15-06/33309, proposed the following option for their accounting. If the employee has provided supporting documents, then the daily allowance should be regarded as reimbursement for other expenses associated with the business trip. Then they are fully exempt from personal income tax. If there are no documents, then you need to apply the limit, as in the case of longer business trips (see “The Ministry of Finance explained in which case expenses associated with a one-day business trip are fully exempt from personal income tax”).
In arbitration practice, there are examples when judges confirmed: daily allowances for a “one-day business trip” are exempt from contributions to the Pension Fund (Resolution of the FAS of the Volga District dated January 22, 2013 No. A65-27465/2011) and are included in expenses (Resolution of the FAS of the North-Western District of July 30 .12 No. A56-48850/2011).
Fare payment
The cost of travel to the place of business trip and back can be included in expenses on the basis of subparagraph 12 of paragraph 1 of Article 264 of the Tax Code of the Russian Federation. In this case, the “input” VAT can be deducted (clause 7 of Article 171 of the Tax Code of the Russian Federation).
When reimbursing a business trip employee for travel expenses, there is no need to withhold personal income tax (clause 3 of Article 217 of the Tax Code of the Russian Federation) and pay insurance premiums (clause 2 of Article 422 of the Tax Code of the Russian Federation).
However, the above norms can only be applied if travel costs are confirmed by primary documents (it is acceptable to accept a “primary document” issued in electronic form; letter of the Ministry of Finance dated 08.08.19 No. 03-03-06/1/59877). In practice, accountants constantly have questions about whether this or that document can be accepted as confirmation.
If the employee traveled by regular transport, he will have to provide a travel ticket. It is not necessary that the ticket be in the prescribed form. The main thing is that it contains the details, signature and seal of the carrier, as well as the name of the points of departure and arrival, the price (Resolution of the Federal Antimonopoly Service of the Far Eastern District dated August 22, 2012 No. F03-3467/2012).
If we are talking about a taxi, then the supporting documents will be an order for the provision of a vehicle for transporting passengers and luggage, as well as a receipt for payment for passenger taxi services. The Ministry of Finance of Russia recalled this in letter No. 03-11-04/2/80 dated June 27, 2012 (see “The Ministry of Finance explained what documents can be used to confirm the costs of an employee’s travel by taxi to the place of business trip and back”).
In the case of air travel, you will need two primary documents: a ticket on which its cost is indicated, and a boarding pass. If the air ticket is electronic, then the supporting document is the itinerary receipt containing the required details: fare, total cost of transportation, form of payment, etc. If you lose your boarding pass, you must obtain a certificate from the air carrier. This opinion was expressed by the Russian Ministry of Finance in letter No. 03-03-07/33 dated September 21, 2011 (see “In case of loss of a boarding pass, the fact of a business trip can be confirmed by a certificate from the air carrier”).
Input VAT on an air flight can be deducted only if the tax amount is indicated on the ticket or on the itinerary receipt. The Ministry of Finance pointed this out in letter No. 03-07-11/01 dated January 10, 2013 (see “The Ministry of Finance recalled the procedure for deducting VAT on air tickets for business travelers”). The same rule applies if the employee used an electronic ticket (letter of the Ministry of Finance dated May 28, 2018 No. 03-07-07/36077; see “How to deduct VAT on electronic train and plane tickets”).
Payment for housing
The cost of travel to the place of business trip and back can be included in expenses on the basis of subparagraph 12 of paragraph 1 of Article 264 of the Tax Code of the Russian Federation. In this case, the “input” VAT can be deducted (clause 7 of Article 171 of the Tax Code of the Russian Federation).
When reimbursing a business trip employee for travel expenses, there is no need to withhold personal income tax (clause 3 of Article 217 of the Tax Code of the Russian Federation) and pay insurance premiums (clause 2 of Article 422 of the Tax Code of the Russian Federation).
However, the above standards can only be applied in a situation where housing costs are confirmed by primary documents (it is acceptable to accept a “primary document” issued in electronic form; letter of the Ministry of Finance dated 08.08.19 No. 03-03-06/1/59877). Namely, a strict reporting form independently developed by the hotel. It must contain the details that are listed in paragraph 3 of the regulations approved by Decree of the Government of the Russian Federation dated 05/06/08 No. 359**. In addition, the form must highlight the amount of VAT.
In practice, tax authorities often make claims when a hotel document contains a non-existent or “foreign” TIN. But arbitration practice on this issue is positive for taxpayers (see, for example, decisions of the FAS of the North-Western District dated November 15, 2012 No. A52-1635/2012, FAS of the Ural District dated 08/08/12 No. F09-6736/12).
If a posted worker paid for housing using a card, he must attach “paper” documents confirming the fact of payment to the advance report. Such documents include, in particular, the slip and receipt of the electronic terminal (letter of the Ministry of Finance of Russia dated October 6, 2017 No. 03-03-06/1/65253).
If the employee lost the supporting document or did not receive it at all because he lived in the private sector, then the expenses cannot be reflected in tax accounting, just as VAT cannot be deducted. Personal income tax from the amount of compensation must be withheld from an amount exceeding 700 rubles. for each day during a business trip within the country, and from an amount exceeding 2,500 rubles. for each day of a business trip abroad. Insurance premiums must be charged on the entire amount of unconfirmed housing expenses. This was reported by specialists from the Ministry of Health and Social Development of Russia dated November 11, 2010 No. 3416-19, the conclusion was confirmed by the judges (resolution of the Administrative Court of the North Caucasus District dated November 20, 2017 No. A32-1706/2017).
Fill out and submit 6‑NDFL and 2‑NDFL for free via the Internet
Payment for food
Tax officials believe that meals during a business trip should be paid for through daily allowances. Therefore, if the employer reimburses the cost of food separately, such expenses cannot be taken into account when taxing profits, and insurance premiums and personal income tax must be paid on them.
Even if the company does not pay daily allowances at all, but only reimburses food expenses, such expenses do not reduce profits and are included in the base for contributions and personal income tax. The fact is that the cost of food is not mentioned among travel expenses either in the Labor Code or in the Regulations on Business Travel.
Arbitration practice on this issue is contradictory. There are cases won by companies (see, for example, the resolution of the Federal Antimonopoly Service of the Moscow District dated 07.11.12 No. A40-112186/11-20-455). But there are also cases won by inspectors (see, for example, the resolution of the Federal Antimonopoly Service of the Far Eastern District dated March 20, 2012 No. F03-912/2012).
In our opinion, it is safer to prevent a conflict and not reflect the cost of food in tax accounting, and it is better to pay contributions and personal income tax.
How to calculate travel and daily expenses
An invoice for travel tickets or the use of a hotel room, of course, can be sent to the organization. But most often, workers independently purchase the travel and accommodation services they need, and then provide documents confirming the costs.
However, even before sending an employee on a work assignment to another locality, the accountant needs to at least approximately calculate how much to pay in advance. To do this, the cost of round-trip tickets, the estimated cost of a hotel room, the amount of daily allowance for the number of days of a business trip, and other planned costs are taken into account.
To calculate the daily allowance, it is necessary to determine how many days a person will be outside the “home” locality and add to them the days on the way. For example, engineer Ivanov A.S. goes to another city for commissioning work. It departs on 12/09/2018 (Sunday) at 5 a.m. and returns on 12/16/2018 (also on Sunday) at 9 a.m. The total number of days on a business trip will be 8 days. If the trip is domestic, then the daily allowance limit, not subject to personal income tax, will be 700 rubles. The amount of daily allowance that must be paid to engineer Ivanov will be:
700 × 8 = 5600 rubles.
If the trip is foreign, then travel expenses will increase as follows:
2500 × 8 = 20,000 rubles.
Please note that the day of departure is determined from 00 to 24 hours, the same as the day of arrival. It is important to take this into account when making final payments, for example using travel documents. If there are no tickets, for example, the employee used a personal or company car, then the duration of the business trip is calculated based on the dates specified in the memo at the end of the trip.
Since the employee still writes a statement for travel expenses (it is the basis for the cash order), you can ask him to independently estimate how much he will need, and then check his calculations. This option will be convenient, including if a person goes to a business trip in a personal car, so he will have expenses, for example, to buy gasoline. The template for filling out the application is at the end of the article.
After the estimate is approved by the chief accountant and manager, you can issue an advance for travel expenses in cash or to a bank card. The issuance of funds is carried out taking into account the standards established by the Central Bank of the Russian Federation. Read more about the requirements of the financial regulator in a separate material from PPT.ru.
As for payments in foreign currency, they are also not prohibited. To do this, travel expenses are calculated according to general rules, but then the amount received is exchanged for currency. Moreover, either the posted employee himself or someone else can exchange rubles for foreign currency. In both cases, you must attach a receipt from the bank confirming the money exchange transaction.
