Mileage
An employer in Denmark can reimburse employees for using a personal vehicle for business journeys. An example of a business journey is driving to a client’s office for a client visit.
There are maximum mileage allowances that employers can reimburse tax free.
The following rates apply for 2023:
First 20,000 km of the year | Above the 20,000 km within the year | |
---|---|---|
Car or motorcycle (driving in Denmark) | DKK 3,73 per km | DKK 2,19 per km |
Car or motorcycle (driving abroad) | DKK 2,19 per km | DKK 2,19 per km |
Bike or scooter | DKK 0,61 per km | DKK 0,61 per km |
In 2022, the rates were exceptionally increased given the rise in fuel prices. These revised rates applied as of May 1, 2022.
First 20,000 km of the year | Above the 20,000 km within the year | |
---|---|---|
Car or motorcycle (driving in Denmark) | DKK 3,70 per km | DKK 2,17 per km |
Car or motorcycle (driving abroad) | DKK 1,98 per km | DKK 1,98 per km |
Bike or scooter | DKK 0,57 per km | DKK 0,57 per km |
You can pay your employees more than these maximum amounts, however, the excess will be considered taxable income. If you pay less than these amounts, reimbursement is tax-free.