Subsistence allowances are amounts paid to cover the cost of food, accommodation and minor necessities in connection with business travel. Subsistence allowances can be paid tax-exempt, provided certain conditions are met. If these conditions are not met, however, a tax is levied on the allowances much in the same manner as salaries. If the employer does not reimburse the employee even though the conditions are met, the employer is entitled to deduct the amount appropriately, although at a maximum amount of DKK 34,400 for 2026.
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