Travel Expense Policy Basics and Reimbursement Process

【Main components of a travel expense policy】

① Daily allowance: lump-sum reimbursement for meals and incidentals at the destination. Set per grade/position.

② Transportation: actual cost reimbursement (bullet train, flights, etc.; green car may be permitted by grade)

③ Accommodation: actual cost or reimbursement up to a set ceiling

④ Other: overseas travel insurance, portable WiFi rental, visa fees, etc.

【Tax treatment of daily allowances】

Daily travel allowances within a reasonable range can be treated as non-taxable "travel expenses" under Article 9 of the Income Tax Act.

Allowances significantly exceeding actual costs may be taxed as salary.

Having a properly drafted internal travel policy in place is one requirement for non-taxable treatment.

【Handling expenses without receipts】

Daily allowances can be paid without receipts.

Some transportation (trains, buses) doesn't issue receipts — IC card history or route-based cost calculation is typically used.

【Key points for overseas travel】

· Foreign currency reimbursement: use the average rate during the trip or the return date rate (per internal policy)

· Overseas travel insurance: the company should arrange coverage for work-related accidents or illness

· Visa fees: typically covered in full by the company

【WorkVell's business travel features】

You can manage the trip request, multi-currency cost lines, comparison of the estimate against actual costs, receipt reading that fills in amounts and dates, approval, journal posting, and payment.

Itinerary management (flights, hotels, travel segments), automatic per-diem calculation, automatic currency conversion, and automatic route/fare calculation are in preparation. Enter allowance amounts and JPY equivalents as line items yourself.