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:
|01/10/2023 – 31/12/2023
(subject to confirmation by the tax authority through publication in Belgisch Staatsblad)
|01/07/2023 – 30/09/2023||€0,4237|
|01/04/2023 – 30/06/2023||€0,4246|
|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|
The mileage rate used to be adjusted annually on 1 July, as mandated by the KB 18 January 1965. However, to adapt to changes in fuel prices more promptly, the mileage rate for business trips has been indexed quarterly since 1 October 2022, instead of once a year, as per the KB 13 July 2017.
Both systems currently coexist and should be implemented based on industry requirements (paritair comité). From 1 July 2023 to 30 June 2024, the maximum amount of the mileage rate will increase from 0,4170 euros per kilometer to 0,4280 euros per kilometer.
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.