Incidental expenses are expenses incurred by company employees as part of normal business activities, including business travel. They cover things like meals, gratuities, taxis/transportation, newspapers, certain phone costs, and costs related to overnight stays in hotels. What incidental expenses are allowable as business expenses and what the limits are will typically be covered in employee manuals or handbooks. The tax rules on incidentals vary by country. Non-exempt incidentals will need to be added back in computing the taxable income from accounting profits and reported to the tax authorities.