Employees using a privately-owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3412 per kilometre.
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 kilometres driven.
The Belgian tax authorities have updated the former lump-sum amount of EUR 0.3468 per kilometre to EUR 0.3412 per kilometre. This new amount is lower and from now on, linked to the flattened health index (instead of the former consumption index) and is applicable to reimbursements made during the period from 1 July 2015 to 30 June 2016.