What documents are needed to report a business trip abroad?
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We offer convenience to our clients by preparing all documents related to posting, reporting and administration of trips for an additional fee.
Posting of staff is usually associated with a lack of clarity in relation to documentation and reporting.
The main steps in posting are the following:
Business trip order and business trip report
In order for the expense to be tax recognized, a business trip order is drawn up, which is accordingly reported on the basis of a report.
The order for the business trip abroad must contain the following parameters:
- name of the department or enterprise that seconded or sent on specialization;
- ground for issuing the order;
- the names of the seconded person or the person who is being sent for specialization, workplace and position;
- the start date and duration of the business trip or specialization in calendar days, including travel days, weekends and holidays;
- country and locality where the person is seconded or sent for specialization;
- financial conditions of the business trip or specialization – travel, per diem and accommodation money, passport, visa and other fees and expenses for business luggage and the way to settle them;
- task of the seconded person or the person sent for specialization;
- type of means of transport and route;
- supervisor who proposed the secondment or specialization;
- other circumstances related to the specific conditions of the business trip or specialization;
- name, position and signature of the person issuing the order, and seal of the department or enterprise;
- name of the department or enterprise responsible for the business trip expenses in the cases under art. 4, para. 1.
- In cases where the host country fully or partially covers the costs of the business trip or specialization, to the order under para. 1, a translation into Bulgarian of an extract from the invitation to visit regarding the financial conditions is attached.
In the section <documents> on our site, you can find a business trip order complete with a business trip report.
Within 7 days of return, the person must account for the expenses incurred. On the basis of the business trip report, the funds are reimbursed or the person returns his official advance.
Daily Money
The daily allowance provides funds for food, internal city transport and other expenses.
Means of internal transport are specified together with the route and the vehicle in the business trip order. In cases where the costs of transportation from the airport to the settlement of the business trip exceed 30 percent of the amount of the daily allowance, these costs are for the account of the department or the enterprise and are reported against a presented expense justification document.
The minimum tax-recognized amount of per diem per country is defined in the Ordinance on secondments and specializations abroad – here. It is shown at the bottom of the order in a table, where what we are interested in is column 4.
Depending on where the person is traveling, they may be paid a daily allowance of up to double the amount at the discretion of the manager.
For example, if the table says 35 euros per day, the person is entitled to up to 70 euros (for working and non-working days). If the business trip lasts more than 30 consecutive days, then for the days after the 30th day they are in the amount of 75 percent of the ordered amount.
If the person receives daily money in value – there is no need for expense justification documents for these expenses.
There are various specific points about the daily allowance that are described in the regulation.
Housing money
Expenses for overnight stays (accommodation money) must necessarily be invoiced in the name of the company. If it is not possible at all, it can be invoiced to the seconded person. (possible nagging in the future by the tax authorities).
For managers of companies, the full amount of housing allowance is charged. There is a limit for employees, see the same table described above, column 5.
The invoice or the contract serves as an expense justification document.
The seconded persons are entitled to travel money according to the order for a business trip in the amount of the expenses actually incurred along the shortest or most economically advantageous route.
Travel money
The full amount is charged when traveling by plane (without business class), train or private car.
There must be an invoice/protocol for the purchase of the ticket or fuel invoices if by car. It is recommended that this expense be paid from the company’s account.
Proof of travel completed
To prove that the business trip was completed, the person must keep the boarding passes for the flights and the document for the overnight stays.
When traveling abroad, it is advisable to keep correspondence with the foreign counterparty or future business partner, or the invitation related to the trip, the ticket for the event attended, etc.
This is our recommendation in order to avoid future disputes with the NRA authorities.
Sources:
- Regulation on business trips in the country
- Regulation on business trips and specializations abroad
- Corporate Income Tax Act
- Accounting Law
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