Actual costs or flat allowances · Luxembourg

Practical answers about travel, receipts and expenses for your business.

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Your questions, in practice · Luxembourg

How do actual-cost reimbursement and flat allowances differ?

Actual-cost reimbursement repays the business amount paid, supported by a receipt: a €95 business hotel bill means a €95 repayment. A flat allowance pays an amount set in advance for a defined situation. Tax-free allowances must meet the conditions of the scheme being used.

Must an expense claim be approved by the employer?

The company needs to review expenses before reimbursing them. There is no single approval workflow for every small business: appoint someone to check the purpose, receipt, amount and any duplicate claim. In a small company, the owner can perform this review.

Official sources and reference period

Amounts apply to the periods specified in the answers. The official texts below explain the conditions and exceptions.

These answers describe general rules for the selected country and stated periods. They are not personalised legal, tax or accounting advice. Your accountant can help apply them to your business.