Travel expenses represent a substantial part of artists’ business costs, and professional travel is always associated with other costs. Self-employed artists report their travel expenses in their tax returns as operating costs.
Tax deductible costs include travel expenses, meal allowance, accommodation contributions and other ancillary travel costs. These are all deductible by self-employed artists.
Travel expenses include expenses for the return journey and the travelling costs at the destination. Public transport costs (airplanes, trains, vessels and local transport) or rent car costs may be deducted at actual (documented) costs.
When an individual uses his or her own car, travel expenses are calculated as the sum of the basic compensation for the use of motor vehicles and the costs of fuel consumption, calculated by multiplying the price of the fuel and the quantity consumed.
The price of the fuel must be documented by a purchase receipt (which must also establish the relationship between the business trip and the fuel bought). When several receipts are presented, the cost is calculated from the average of prices shown.
Per diem or daily allowances are granted for domestic and foreign trips alike. The law sets forth the minimum amount.
Under section 163(1) of the Labor Code, for each calendar day spent on a business trip, an employee is entitled to a daily meal allowance of at least:
- CZK 72, for business trips taking from 5 to 12 hours,
- CZK 109, for business trips taking from 12 to 18 hours,
- CZK 171, for business trips taking over 18 hours.
If the employee receives a free meal during the business trip, the daily allowance is reduced accordingly.
Different limits exist for Government employees.
Daily allowances for foreign trips classified by countries are laid down in the Ministry of Finance Regulation No. 366/2016 Sb.
Self-employed individuals must document their accommodation costs over a multiday business trip (whether domestic or foreign) by an appropriate receipt. The law does not limit the amount of deductible costs for accommodation.