Employees using a privately-owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0,3542 per kilometer.
Costs that an employee incurs 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. Repayment can be made on a lump-sum basis, taking into account the actual business kilometers driven.
The Belgian tax authorities have updated the former lump-sum amount of EUR 0,3653 per kilometer to EUR 0,3542 per kilometer. This new amount is lower due to the decrease in fuel prices and is applicable to reimbursements made during the period from 1 July 2020 to 30 June 2021.