Four days in Istanbul. Hotel, taxi, meals — all paid out of pocket. You come back and hand in the receipts. The accountant covers part of it. "Taxi isn't reimbursed." Why? "That's the rule."
Which rule, passed by whom, since when — few people think to ask. Because the answer is buried inside two regulatory acts that nobody reads. We read them.
First, the rates themselves — these are new numbers
Domestic business trip rates in force since 2024:
| City / region | Daily rate |
|---|---|
| Baku | 125 AZN/day |
| Nakhchivan | 100 AZN/day |
| Ganja and Sumgait | 95 AZN/day |
| Other cities, districts and villages | 90 AZN/day |
But this amount isn't a single lump sum — it's divided. 70% of the rate covers accommodation, 30% covers daily expenses: meals, communications, local transport.
For Baku: 87.5 AZN for the hotel, 37.5 AZN for daily expenses. No hotel invoice means no 87.5 AZN — you receive only 37.5.
Transport tickets are on top of this rate. Rail, bus and air tickets are reimbursed in full against supporting documents.
Practical tip #1: Before you travel, agree with the accounts department on which hotel tier is covered and what transport types are reimbursed. Disputing it after you return is too late.
Why taxis are not reimbursed — and this won't change
When transport expenses are discussed, costs incurred by using a taxi are not included in business travel expenses. During a work trip, the employee may only use public transport.
This rule has been unchanged since 2012. Without a written, justified authorisation from a manager, no accounts department will accept a taxi receipt. If the nature of the assignment genuinely requires a taxi — get that stated in the travel order before you leave.
International trips: the passport decides everything
Every country has its own rate — Istanbul 220 EUR, Moscow 240 USD, London 260 GBP.
For international business trips, 40% of the daily rate covers meals and 60% covers accommodation.
The most common mistake: the duration of an international business trip is determined by the entry and exit stamps in the passport — not by the dates written in the travel order. What the order says is irrelevant.
Concrete example: An employee travels to Istanbul on 18 May, flies back on the night of 20 May at 22:00 and arrives in Baku on 21 May at 01:00. Daily allowances are calculated for 4 days — 18, 19, 20 and 21 May. Accommodation is charged for 3 nights, since the employee was not in the hotel on the night of the 21st. Even if the travel order states "last day: 20 May" — the passport wins.
Practical tip #2: When you return from an international trip, hand a copy of your passport straight to the accounts department. If the stamp dates differ from the order dates — this can work in your favour.
Lost ticket
If a ticket is lost, the organisation that sold it — the airline or ticket office — can provide any document or reference confirming that the ticket was sold to that person. This document is accepted as proof of transport expenses.
"No ticket, no reimbursement" is the wrong answer. Contact the airline or ticket office and request a confirmation letter.
When the host covers expenses
Sometimes a conference, seminar or partner company covers accommodation and meals. If the inviting party fully provides the employee with accommodation and food, only 5% of the standard daily rate is paid to the employee.
In other words, even if the host covers everything, you still don't receive the full daily allowance — just 5%. Employees who don't know this rule claim the full rate, but there is no legal basis for it.
Tax — what you don't know costs you
Tickets, hotel, visa, insurance — all reimbursed tax-free against supporting documents.
From the daily allowance, however, only up to 30 AZN per day is tax-exempt; anything above that is taxable. Tax Code of Azerbaijan, Article 102.1.8.
If a company pays above the standard rate, the excess cannot be deducted as a business expense — it comes out of profit. For small businesses, this is an important detail.
Advance payment: it must be received before departure
The employee must receive a cash advance before the trip, covering the expected duration. "We'll settle up when you return" is not legal.
After returning, the employee has 3 days to submit an expense report, together with receipts, tickets and the hotel invoice. Any unspent advance must be returned to the company cashier; otherwise it will be deducted from the employee's salary.
Practical tip #3: During a business trip, document every expense with a receipt — even small ones. A forgotten receipt after you return equals lost money.
If you fall ill — the trip pauses, but the expenses continue
Few people know this: if an employee temporarily loses the capacity to work during a business trip and cannot return home, daily accommodation expenses are reimbursed at the standard rate for the duration they are unable to travel.
So even if you are in hospital, the accommodation rate continues. For the days of incapacity, a separate temporary disability benefit (sick pay) is issued — these days are not counted as part of the business trip.
On salary
During a business trip, the employee's salary is maintained in full. Business travel expenses are in addition to salary, not a substitute for it.
Based on Cabinet of Ministers Resolution No. 14 (25.01.2008, amended 2024); Ministry of Finance Order Q-01 (18.01.2012); Labour Code of Azerbaijan, Art. 176; Tax Code of Azerbaijan, Art. 102.1.8.