Private Motor Vehicles for Business Trips
When an employee, working for a Belgian employer, uses a private motor vehicle for business reasons, the employer can either reimburse the employee for the actual costs made (based on evidence provided by the employee) or choose to reimburse the employee based on a fixed amount per driven kilometre (the mileage rate).
This mileage rate for motor vehicles set by the government is a maximum of:
|01/01/2023 – 31/03/2023||€0,4259|
|01/10/2022 – 31/12/2022||€0,4201|
|01/07/2022 – 30/09/2022||€0,4170|
|01/03/2022 – 30/06/2022||€0,4020|
It is allowed for an employer to give a higher mileage rate, but the employer needs to be able to prove that the higher rate is in line with the actual cost per kilometre.
Mileage expenses, based on the official maximum rate applicable, are not taxable in Belgium (nor for income taxes or social security taxes). The distance between the employee’s home and work location has to be excluded from the mileage expenses. The yearly distance for mileage expenses cannot exceed 24.000 km. If it does, the employer/employee needs to prove it.
In Belgium, there is also a mileage rate for bike rides (currently €0,25 per kilometre). In general, this is limited to commuting between work and home, but in some sectors, it is also allowed for business trips.