U.S. State Department Updates Per Diem Rates for Canada, Italy and Mexico

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April 24—Per diem rates for U.S. business travel to more than 50 cities worldwide were updated by the U.S. State Department and are to be effective May 1, 2015, the department said.

While the rates are the maximum tax-free reimbursement rates issued to U.S. government employees traveling on official business in foreign areas, the U.S. Internal Revenue Service also allows U.S.-based employers to use the per diem substantiation method based on the rate schedule for accountable business travel by employees.

Employers can pay for employees for business meals, lodging and incidental expenses up to the allowable amounts without generating additional federal taxable income.

The latest list released by the department includes changes to localities in the Bahamas, Canada, Ethiopia, Germany, Hungary, Italy, Japan, South Korea, Mexico, The Philippines, Poland, South Africa, Switzerland and Turkey.

The State Department foreign per diem rates are available at http://aoprals.state.gov/web920/per_diem_action.asp?MenuHide=1&CountryCode=0000.

More information on payroll issues in the countries mentioned can be found within the International Payroll Decision Support Country Primers.