COBALT Estonia Labour Law Newsletter: tax-exempt limits for travel expense reimbursement and daily allowances

After years without change, the tax-exempt limits for travel expense compensation and daily allowances for foreign assignments have finally been revised. The tax-free compensation for using a personal vehicle for work-related travel has increased to €0.50 per kilometre (previously €0.30), with a maximum of €550 per month (up from €335).

The tax-free daily allowance for employees on assignments abroad has also increased. For the first 15 days of an assignment, employers may now pay up to €75 per day tax-free (previously €50). From the 16th day onwards, the maximum tax-free allowance is now €40 per day (up from €32).