An employer may, tax-free, cover his employee's travelling expenses for work-related transport and food/accommodation in connection with the employee's work. The allowance is calculated according to fixed rates. As the allowance is tax-free, it does not need to be stated on the employee's preliminary income assessment or tax assessment notice.

If the employer covers the employee's travelling expenses ‘on presentation of vouchers' (i.e. against documentation), the employee is not liable to taxation on the amount either.

Work-related transport
A tax-free allowance can be paid in respect of the following types of transport:

• Transport between one's place of residence and the same place of work for up to 60 working days (within the preceding 12 months)
• Transport between workplaces
• Transport within the same workplace

The employer may pay a tax-free commuting allowance based on fixed rates to cover such expenses as the employee has in connection with work-related transport.

It is, however, a condition for receiving the tax-free commuting allowance that the employee uses his own car or motorcycle and that he keeps transport records (number of kilometres). The rates for 2010 are:

Read more in the guide Få godtgørelse eller fradrag for din erhvervsmæssige kørsel (currently only available in Danish) at skat.dk.

If you receive no tax-free commuting allowance from your employer for the costs of work-related transport, you may include the number of kilometres you have driven in connection with your work when you calculate the deduction for transport between home and work. See the section Tax relief for salary/wage earners, under Transport (commuting deduction).

Food and accommodation
You can also receive a tax-free allowance to cover food and accommodation expenses incurred in connection with your work. This allowance must also be based on fixed rates. Read more in the guide Få godtgørelse eller fradrag for dine rejseudgifter (currently only available in Danish).