[Czech Republic] Increase in the limit for tax exemption of the meal allowance

The domestic meal allowance rates have changed as of 20 August 2022. Since the limit for tax exemption of meal allowance on the employee’s side, and hence the limit up to which expenses (costs) incurred for earning, securing, and maintaining income on the employer’s side can be recognized, is linked to these rates, the tax exemption limit is changed.

As of 20 August 2022, a meal allowance in cash up to CZK 99.40 per shift is exempt (until 19 August 2022 the limit is CZK 82.60). If the employer provides a higher meal allowance, the employee must pay tax and insurance on the amount exceeding this limit.

Similarly, if the employer provides meal vouchers, which are always exempt at full value on the employee’s side, the employer can now count up to CZK 99.40 per shift among the expenses (costs) incurred to earn, secure and maintain income (if other conditions are met).

New meal allowance rates effective from 20.8.2022:

1. CZK 120 to CZK 142 if the working trip lasts between 5 and 12 hours,
2. CZK 181 to CZK 219 if the business trip lasts more than 12 hours, but no longer than 18 hours,
3. CZK 284 to CZK 340 if the working trip lasts longer than 18 hours.

Author:
Martin Svoboda
Payroll Development Specialist