Corporate Travel Destinations

Meetings in other countries have been a popular concept for businesses over the past several years, especially as air travel continues to become increasingly affordable. Several countries have developed entire regions dedicated to earning the business of enterprise clients and this business serves many purposes:

• Businesses get great deals on accommodations and entertainment, often with amazing all inclusive packages. The prices offered by many developing countries on goods, services, and accommodations are absolutely unbeatable and in volume can even make up for the price of airfare.
• Attendants of such events or meetings get a chance to travel and see the world. This broadens perspectives, increases loyalty, and even gets the mind working in entirely new ways. Who knows what the benefit will be of stirring up the creative juices with new stimuli, but they are bound to be profound and lasting.
• The communities in developing nations that have invested heavily in building the infrastructure necessary to attract business customers benefit from having tourists and may even have other business opportunities worth looking into. Some countries develop business-oriented tourist facilities in tandem with plans to build business parks and production facilities that could further enhance the relationship between a developing country and businesses looking to lower their bottom line. The result can be a win-win situation if the circumstances are right.

When it comes time to start discussing corporate travel options and ways to justify the expenses, which are usually very low compared to leisure travel, it is possible to forget the tax benefits of corporate expenses. While tax law is incredibly complex, the following generalities are often accurate and beneficial to the company’s bottom line:

• By availing themselves of the networking opportunities and other business options, most businesses can find it very easy to allow for their business trips to qualify as business expenses that can be written off as tax deductions.

• Tax deductions related to travel may not necessarily be on a 1 to 1 basis in terms of dollar value, but having a loss largely consumed by tax liability that in turn presents business opportunities or advantages is generally considered to be a great idea.

• Excellent records should be kept of all corporate travel expenses. Consider using inclusive travel options for easier accounting and less time spent planning.

As with any tax-related issue, it would be wise to consult with a qualified accountant to make the final determination regarding what is and is not allowed for deductions. A short meeting with the staff accountant or outside accountant could be the difference between stepping up to the challenge and opportunities available or continuing on a stable but less profitable path.