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How are meal expenses regulated during business trips and vacations?
How are meal expenses regulated during business trips and vacations?
According to Article 2.5 of the Cabinet of Ministers Decision No. 492, meal expenses paid for the days when an employee is absent from work (due to vacation, illness, etc.) or on a business trip are not deducted from income under this Regulation.
Example 1. The taxpayer has set a daily meal expense of 5 AZN for an employee. The employee of the taxpayer, working a five-day workweek, takes a 14-day vacation starting from July 1, 2025. Since the employee returns to work on July 15, they will work 13 business days in July, not 23 (because 10 business days of vacation are not considered). The employer should pay the meal expense for only 13 business days, i.e., 65 AZN (13 business days × 5 AZN), since meal expenses should not be paid for the 10 business days that coincide with the vacation period.
Example 2. Based on the employer's decision, the employee was on a 3-day business trip to Bərdə city in August 2025. Additionally, the employee temporarily lost their ability to work and did not come to work for 2 days. The employee also took 4 days of unpaid leave in August. According to the 2025 production calendar, the number of working days in August for a five-day workweek is 21. In this case, the employer should pay the employee meal expenses not for 21 working days but for 12 working days (21 working days – 3 business trip days – 2 days of temporary disability – 4 days of unpaid leave).
According to Article 2.5 of the Cabinet of Ministers Decision No. 492, meal expenses paid for the days when an employee is absent from work (due to vacation, illness, etc.) or on a business trip are not deducted from income under this Regulation.
Example 1. The taxpayer has set a daily meal expense of 5 AZN for an employee. The employee of the taxpayer, working a five-day workweek, takes a 14-day vacation starting from July 1, 2025. Since the employee returns to work on July 15, they will work 13 business days in July, not 23 (because 10 business days of vacation are not considered). The employer should pay the meal expense for only 13 business days, i.e., 65 AZN (13 business days × 5 AZN), since meal expenses should not be paid for the 10 business days that coincide with the vacation period.
Example 2. Based on the employer's decision, the employee was on a 3-day business trip to Bərdə city in August 2025. Additionally, the employee temporarily lost their ability to work and did not come to work for 2 days. The employee also took 4 days of unpaid leave in August. According to the 2025 production calendar, the number of working days in August for a five-day workweek is 21. In this case, the employer should pay the employee meal expenses not for 21 working days but for 12 working days (21 working days – 3 business trip days – 2 days of temporary disability – 4 days of unpaid leave).