Mileage allowance by MC
Posted on July 01, 2015 at 10:00 AM
Mileage allowance When your employees make business trips with their own private car they expected of you, as an employer, to pay these costs. This kind of allowance is not subjected to social security contributions and wage taxes because they are given to cover actual costs.
For the reimbursement of these costs, you can use a fixed allowance. The advantage of an fixed allowance is that you don't have to prove the actual costs on the basis of receipts. To avoid that the reimbursement will be considered as salary it's important to respect the maximum rates which are published by the Belgian government. If the compensations are higher than the fixed amount, it is considered as a form of remuneration and the employee will be charged for a benefit in kind. The employer is due to pay social security contributions on this amount.
These amounts are adjusted annually on the 1st of July
01/07/2015 - 30/06/2016 € 0.3468 / Kilometer
01/07/2014 - 30/06/2015 € 0.3412 / Kilometer
01/07/2013 - 30/06/2014 € 0.3461 / Kilometer
01/07/2012 - 30/06/2013 € 0.3456 / Kilometer
01/07/2011 - 30/06/2012 € 0.3352 / Kilometer
01/07/2010 - 30/06/2011 € 0.3178 / Kilometer
The tax administration will ask for additional evidence when the number of professional mileage exceeds 24.000km per year. But it's the tax inspector who needs to prove that the exceeding mileage concerns a hidden salary construction.
The fixed amount is deductible under the normal rules for deducting car expenses. There is a ratio of 30/70 which need to be applied. According to the administration, 30% of the standard fee represents the fuel costs and 70% the other car expenses. The fuel costs are deductible for 75% deductible in the company and the remaining 70% are deductible as in function of the CO2 emissions of the car.
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Mileage allowance July 01, 2015 at 10:00 AM
Mileage allowance When your employees make business trips with their own private car they expected of you, as an employer, to pay these costs. This kind of allowance is not subjected to social security contributions and wage taxes because they are given to cover actual costs.