There are two regimes to reimburse private sector employee who incurs expenses while traveling in Luxembourg or abroad¹:

• Normal regime: the employee is tax-free reimbursed for expenses incurred on the basis of supporting documents submitted to his/her employer;
• Lump sum regime: the employee receives a tax-exempt lump sum allowance (per diem), provided it does not exceed that allocated to civil servants. The new amounts of these allowances, adjusted by Government Regulation of December 13, 2024, will apply from 01.01.2025: https://legilux.public.lu/eli/etat/leg/rgc/2024/12/13/a510/jo

¹ There are specific provisions for employees working on building sites.
² A supporting document is required. By default, the tax exemption will be applied up to 20% of the amount of the lump sum allowance.

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