Known With the Employee Expense Regulations as Applicable in Germany

1. Known With The Employee Expense Regulations As Applicable In Germany Tel: +49 (0) 2173 / 2039568, Fax: +49 (0) 2173 / 206963 mail@payroll-services-germany.com

2. K Kn no ow wn n W Wi it th h T Th he e E Em mp plo loy ye ee e E Ex xp pe en ns se e R Re eg gula A As s A Ap pp pl lica icab ble le I In n G Ge er rma ulat tio ion ns s man ny y Overseas business organizations operating in Ger many, might often require their employees to trav el within and outside the country. As in most other countries, such travel is governed by specific expense reimbursement regulations of the local government. It is the responsibility of a PEO company Germany to make its foreign-based clients aware of the vari ous rules governing per diems. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com

3. K Kn no ow wn n W Wi it th h T Th he e E Em mp plo loy ye ee e E Ex xp pe en ns se e R Re eg gula A As s A Ap pp pl lica icab ble le I In n G Ge er rma ulat tio ion ns s man ny y Per diems refer to the fixed amount of money that t he employers are expected to reimburse their travell ing employees with, while they are away on a busine ss assignment. The German expense reimbursement regulation is di vided into two main categories, which are explained in brief as follows. 1. Multi-day Trips Within The Country 2. Trips Outside Germany Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com

4. K Kn no ow wn n W Wi it th h T Th he e E Em mp plo loy ye ee e E Ex xp pe en ns se e R Re eg gula A As s A Ap pp pl lica icab ble le I In n G Ge er rma ulat tio ion ns s man ny y 1. Multi-day Trips Within The Country : Employees, who are required to undertake multipl e day trips within Germany, are entitled to a reimb ursement amount of €24, for every 24 hours they s pend away from their home or workplace. In addition, the employers are also required to pay them €12, for their day of departure and arrival, if t he employees would not be spending the night at their own home. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com

5. K Kn no ow wn n W Wi it th h T Th he e E Em mp plo loy ye ee e E Ex xp pe en ns se e R Re eg gula A As s A Ap pp pl lica icab ble le I In n G Ge er rma ulat tio ion ns s man ny y In the case of single-day trips, where the employees spend more than 8 hours away from home, they are entitled to a reimbursement amount of €12. 2. Trips Outside Germany The regulations governing reimbursement for trips away from Germany are somewhat complicated. T he government generally offers three different ex pense reimbursement rates according to the desti nation country. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com

6. K Kn no ow wn n W Wi it th h T Th he e E Em mp plo loy ye ee e E Ex xp pe en ns se e R Re eg gula A As s A Ap pp pl lica icab ble le I In n G Ge er rma ulat tio ion ns s man ny y This is because the rate of reimbursement is decid ed by the government on the basis of the country that the employees will be traveling to as well as t he cost of living within that country. These include rates as applicable for a 24-hour abs ence from home or workplace, the rates for the da y of arrival and departure and the rates related to the costs of an overnight stay in the destination co untry. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com

7. K Kn no ow wn n W Wi it th h T Th he e E Em mp plo loy ye ee e E Ex xp pe en ns se e R Re eg gula A As s A Ap pp pl lica icab ble le I In n G Ge er rma ulat tio ion ns s man ny y Meal Allowance Deductions The expense reimbursement regulations also cove r the meal allowances provided to the employees during their business-related travel. However, the Employer of Record Germany shoul d inform their clients about the situations where t he meals offered to the employees are free of cos. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com

8. K Kn no ow wn n W Wi it th h T Th he e E Em mp plo loy ye ee e E Ex xp pe en ns se e R Re eg gula A As s A Ap pp pl lica icab ble le I In n G Ge er rma ulat tio ion ns s man ny y In such situations, a certain percentage is deducted f rom the daily meal allowance of the employees for s uch cost-free meals. The deductible percentages are set at 20% for breakfast and 40% deduction for lunch and dinner. Other Expense Regulations To Consider It is important for overseas employers to understa nd that a majority of expenses vary in accordance with the travel destination of the employees. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com

9. K Kn no ow wn n W Wi it th h T Th he e E Em mp plo loy ye ee e E Ex xp pe en ns se e R Re eg gula A As s A Ap pp pl lica icab ble le I In n G Ge er rma ulat tio ion ns s man ny y The employers may also have to reimburse the empl oyees for various other expenses including car rental s at the destination, any expenses on business comm unications such as phone calls, letters, etc., as well as transportation, storage and in some cases the insura nce for luggage. The most important thing that a PEO Germany ne eds to ensure is that they make the navigation co mpliance of German expense regulations easy for their clients. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com

10. K Kn no ow wn n W Wi it th h T Th he e E Em mp plo loy ye ee e E Ex xp pe en ns se e R Re eg gula A As s A Ap pp pl lica icab ble le I In n G Ge er rma ulat tio ion ns s man ny y Most professional PEO’s are capable of mitigating the various compliance risks by taking proper care of all the associated administrative tasks in a timel y and efficient manner. This is, in fact, one of the most basic requirements for ensuring the successful expansion and operati on of overseas business organizations within Germ any. Tel: +49 (0) 2173 / 2039568, mail@payroll-services-germany.com