Expense Reimbursement Policy in Denmark



Modified on: Tue, 30 Sep, 2025 at 2:45 PM

TABLE OF CONTENTS



This policy outlines the rules and procedures for reimbursing business-related expenses for employees in Denmark, in accordance with the Danish Tax Authority (SKAT) guidelines. 


Invoicing & Documentation


Required Documentation for Tax-Free Reimbursement

  • Valid invoice or receipt showing:
    • Vendor name and tax ID
    • Description of the expense (e.g., transport, meals, accommodation)
    • Date and amount
  • Horizons does not need to be listed on the invoice, but the service provider’s details must be clear.


Simplified Receipts

  • For small expenses under 50 DKK (e.g., local transport, minor supplies), simplified receipts may be accepted.
  • However, the company may still require full invoices for consistency.


Record Retention

  • All documentation must be retained for 5 years to comply with SKAT audit requirements.




Reimbursement & Taxability


Tax-Free Reimbursable Expenses (with documentation)

  • Travel: Train, flight, taxi, car rental
  • Meals: If directly linked to business (e.g., client meetings)
  • Accommodation: Hotel stays for business trips
  • Business-related supplies: Office materials, professional services


Per Diems

  • Domestic per diem: 150 DKK/day for food and incidentals
  • International per diems: Based on destination; SKAT publishes country-specific rates
  • Per diems are non-taxableif:
    • Within SKAT’s standard rates
    • Used for overnight business travel
  • Excess amounts or unsubstantiated claims may be taxable income.



Business Travel


Air Travel

  • Reimbursable with receipt or boarding pass.
  • Business class is typically only allowed for long-haul flights, unless explicitly justified.


Public Transport (Train, Bus, Tram)

  • Reimbursable with valid tickets.
  • Must be used for business-related travel only.


Taxis / Cabs

  • Allowed for business purposes.
  • Receipts are required.
  • Company policy may prioritize public transport unless taxis are necessary.


Rental Cars

  • Reimbursable with:
    • Rental agreement
    • Receipts
  • Typically, only economy or compact cars are covered unless a larger vehicle is justified by business needs.



Mileage Reimbursement

  • The official mileage reimbursement rate for 2025 is 3.70 DKK per kilometre for employees using their personal vehicle for business purposes.
  • This rate is set by SKAT and periodically adjusted.
  • It covers all vehicle-related costs (fuel, maintenance, insurance, etc.).


Additional Travel Costs

  • Parking fees and tolls must be claimed separately from mileage.
  • These must be substantiated with receipts and reported as individual travel-related expenses.




Entertainment, Gifts & Events


Business Gifts

  • Non-taxableif:
    • Value is under 200 DKK per recipient per year
    • Or under 50 EUR per year (whichever threshold applies)
  • Taxable if the value exceeds these limits


Client Entertainment & Events

  • Generally taxableunless:
    • The event is modest and business-related
    • It meets SKAT’s criteria for deductible business events



Wellness & Health Expenses

  • Not reimbursable unless directly related to business (e.g., medical treatment during business travel)
  • Gym memberships, yoga, swimming are not reimbursable unless part of a formal employee benefit program








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