How are different expense categories treated in the Czech Republic for reimbursement?

In the Czech Republic, expense categories are treated in various ways for reimbursement, and many have specific requirements regarding taxability:

Taxable Categories

Mobile Phone Usage: Taxable unless business and personal usage is clearly separated by an itemized bill.

Broadband Internet at Home: Considered a personal benefit and therefore fully taxable.

Furniture: Furniture purchased by the employee, even if work-related, is treated as a taxable benefit.

Gifts: Gifts provided to clients are fully taxable and require prior approval.

Professional Memberships: Professional institute or association fees, even when required by law, are treated as taxable income.

Non-Business Asset Use: Assets not used exclusively for business purposes are taxable and must be processed via payroll.

Expenses with Special Requirements

Mileage: Mileage is reimbursed using statutory rates (CZK 5.80 per km for passenger vehicles in 2025, plus fuel). Claims exceeding statutory limits are taxable. Detailed mileage records and vehicle documentation are mandatory.

Parking and Tolls: Parking and tolls are reimbursable and tax free when incurred during business travel and properly documented. Fines are not reimbursable.

Per Diem Allowance: Statutory domestic and foreign per diems are tax free within legal limits. Any excess above statutory thresholds is taxable. Per diems must be reduced when meals are provided.

Non-Taxable Expenses

These include transportation, airfare, public transport, taxis, car rentals, accommodation, meals during business travel (which reduce per diems), statutory domestic and foreign per diems within limits, client and staff entertainment, computer equipment for exclusive business use, office supplies, dongles and data cards, foreign currency exchange fees, exchange rate differences, visas and work permits, professional training, and exceptional business-related cancellation costs, provided all expenses are directly work-related, approved, and properly documented.

For all expense types, proper documentation is mandatory, including VAT-compliant invoices where required. Expenses must be incurred solely for business purposes, approved by the supervisor, and submitted within the required timeframe to ensure compliant reimbursement under Czech tax regulations