At a glance
This article explains the mileage allowance rules applicable in Germany.
Mileages are allowances at predefined values set by companies that can be granted to employees for the use of a vehicle.
The travelled distance is calculated based on Google Maps.
What are mileages?
Mileages are allowances at predefined values set by companies that can be granted to employees for the use of a vehicle. The current tax-free maximum rates in Germany are:
€0.30 per km for private car use.
€0.20 per km for motorcycles or mopeds.
These maximum rates are preset in Circula.
Example Calculation
An employee travels from Berlin to Dortmund for a business trip using a private car. The round-trip distance is 576 km. The travel reimbursement is calculated as follows:
576 km × €0.30 = €172.80
Note
For German companies, the same rules apply worldwide. The same calculation would apply for a private vehicle trip in France, for example.
How Is the Travel Distance Calculated?
To determine the reimbursable mileage allowance, Circula requests the start and destination address of the trip.
The travelled distance is calculated using Google Maps.
If the actual travelled distance needs to be adjusted (e.g., due to detours or shortcuts), users can manually edit the mileage in the "Distance (km)" field.
Editing the distance manually
Important!
Do not confuse the commuter allowance (Pendlerpauschale) with the mileage allowance (Kilometerpauschale).
The commuter allowance refers exclusively to the distance between the employee’s residence and their primary workplace.
The mileage allowance applies to business-related trips.
🔗 More information on mileage allowance (German only).
Do you still have questions?
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✉️ support@circula.com