How are different expense categories treated in Portugal for reimbursement?

In Portugal, expense categories are treated in various ways for reimbursement, and many have specific requirements regarding taxability

Taxable Categories

Mobile Phone Usage: Mobile phone expenses submitted by employees are treated as taxable benefits.

Broadband Internet at Home: Home broadband internet expenses are treated as taxable benefits and paid via payroll.

Expenses with Special Requirements

Mileage: Mileage is reimbursed at statutory rates:

• EUR 0.40 per km for passenger cars
• EUR 0.16 per km for motorcycles

Reimbursements above these limits are taxable. Detailed journey information is mandatory, and rates may be revised in line with Portuguese Tax Authority guidance.

Daily Allowances (Per Diems): Daily allowances may be reimbursed subject to prior approval and statutory conditions. Current daily allowance rates are:

• Domestic travel (Portugal): EUR 62.75 for employees / 69.19 for managers
• Foreign travel: EUR 148.91 for employees / 167.07 for managers

Non-Taxable Expenses

These include business travel transportation, accommodation during business travel, meals during business travel when approved and supported by invoices, daily allowances within approved statutory limits, mileage reimbursed within statutory rates, parking and tolls with valid receipts, client entertaining when properly documented, computer equipment and software used exclusively for business purposes, stationery and office supplies, foreign currency exchange commissions, exchange rate differences, work permits and visas when approved, business-related training, and exceptional business-related cancellation costs, provided all expenses are wholly, exclusively, and necessarily incurred for business purposes and supported by compliant documentation.

For all expense types, proper documentation is mandatory, including VAT-compliant invoices or itemized receipts 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 Portuguese tax regulations