The decision of the Supreme Arbitration court of the Russian Federation of 26.01.2005, N 16141/04 became the basis for changes in Russian legislation, and in particular, to the tax code. In article 127, item 3 of NK of the Russian Federation sets the maximum per diem that will not be referred to income of the traveler and, accordingly, this amount will not be calculated the tax on income. For those who are seconded to the territory of the Russian Federation, this amount is 700 rubles, for business travelers abroad – 2500 rubles per day. The amount of subsistence allowance that exceeds these amounts must be subject to personal income tax and accounted for as "other income". However, it should be remembered that for the organizations financed from the state budget, the rate of subsistence allowance has remained the same – 100 rubles.
Since 2009, legislation eliminated the restrictions that concerned the daily subsistence allowance for purposes of income tax (par. 4 PP. 12 p. 1 article 264 TC of the Russian Federation), therefore a commercial enterprise has the right (article 168 of the labour code) to establish its own per diem rate for travel within the Russian Federation and abroad. They should be issued an appropriate local act or are reflected in one of the paragraphs of the collective agreement.
The amount of compensation payable for each day spent in travel. This amount includes days when the employee was in the way, as well as on holidays, weekends and nonworking days. Any documents that substantiate the expenditure of these amounts, the employee is to submit is not required. To determine daily simply by counting calendar days.
Per diem employee traveling on a business trip abroad, are paid in the currency of the country in which it is sent. According to the Ministry of Finance Letter No. 03-04-06/ 6-205 from 06.09.2010, when crossing the border daily for that day are paid at the rate of the country in which the employee enters, i.e. daily in the day when the employee crosses the border of Russia and later, while he follows to the place of work, paid 700 rubles a day.
Per diem is not paid if the trip is not too far and staff have the opportunity during a one-day business trip to return home, to the place of permanent residence. Repayment can cause problems when conducting a tax audit.