Table of contents

Table of contents

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.

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Learn how you can apply these mileage rates in your Rydoo account here.

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