The 12-month rule for per diems (DK)
| Feature | General availability | Public preview |
|---|---|---|
| The 12-month rule for per diems | Mar 2026 | Apr 2026 |
Business value
For Danish localization, legislative compliance has been enhanced with support for the 12-month rule for per diems. This rule ensures correct handling of taxable amounts after the 12-month threshold is reached and accommodates 40-day interruptions for other temporary destinations. These interruptions allow the same destination to regain tax-free status after the break.
Previously, managing per diem taxation over extended periods required manual checks and adjustments, increasing the risk of errors and administrative overhead. With this enhancement, companies can automate compliance with Danish legislation, reducing complexity and ensuring accurate tax reporting for long-term assignments.
Feature details
This functionality can be enabled from Expense Management Setup – Per Diem.
To use the feature:
- Specify an Address Code for temporary addresses.
- Ensure that addresses are at least 8 km apart to qualify as separate destinations.
After configuration, the system automatically applies the 12-month rule and interruption logic during expense processing, providing consistent and compliant handling of per diem taxation.