U.S. Updates Business Travel Per Diem Rates for Australia, Malaysia and South Korea

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May 27—Per diem rates for U.S. business travel to more than 90 cities and jurisdictions including Sydney, Kuala Lumpur and Seoul were updated by the U.S. State Department and are to be effective June 1, 2016, the department said.

While the rates are the maximum tax free reimbursement rates issued for 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 U.S. federal taxable income for the business traveler.

All jurisdictions in the following countries were updated: Malaysia, New Zealand, Pakistan, Papua New Guinea, South Africa and South Korea.

The latest list released by the department also includes changes to localities in Algeria, Australia, Botswana and Portugal.

For More Information

The U.S. State Department foreign per diem amounts 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.

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