Costs proper to the employer: new lump-sum amount for reimbursement of business use of private car

Written by Nicolas de Limbourg 7 July 2014


Employees using a privately owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3468 per kilometre.

Background

Costs that an employee makes when using a privately owned car for business purposes can be reimbursed by the employer free of income tax and exempt from social security contributions. The reimbursement can be done on a lump-sum basis, taking into account the actual professional kilometres driven.

In a new practice note, the Belgian tax authorities have updated the former lump-sum amount of EUR 0.3461 per kilometre to EUR 0.3468 per kilometre. This new amount is applicable for reimbursements made during the period from 1 July 2014 until 30 June 2015.