Allowances stay complex as they vary by modes and by declaration method. Time for an overview. Mbrella offers a handy one to find out which allowance may be applicable. Also, always consult the Joint Committee to find out stricter rights and obligations for allowances.
Commuting
Private car
The private car allowance corresponds to a lump tax-free sum of up to 490 euros per year (2024). This sum is an allowance for both private car, motorcycle, walking and carpooling. Be aware that you can only once receive 490 euros per year tax-free.
You can also opt for the deduction of actual expenses. This is subject to a flat rate of 0.15 euro per kilometre. However, this allowance is fully taxable. As long as one's own car is driven, there is no limit on the number of kilometres per day. When not driven in one's own car, the one-way limit is 100 km.
Carpooling
If the carpooling is organised by the employer (e.g. internal carpooling system), the carpooling is reimbursed tax-free up to a maximum of the price of a monthly first-class train ticket for the same distance.
When employees carpool on their own initiative, both the driver and the drivers can receive a tax-free lump sum of up to 490 euro per year (2024).
In this case, you can choose to declare the actual costs, and work with a taxable lump sum of 0.15 euro per kilometre. This regardless of whether the carpooling is organised by the employer or not.
Public transport
Public transport season tickets can be refunded tax-free. This may or may not be via the third-party payer system. Under the third-party payer system, the cost of the season ticket is borne directly by the employer, this way no refunds have to be made. VAT on public transport season tickets (6%) can be reclaimed by the employer.
When the employer pays 80 per cent of the season ticket through the third-party payer system, the government pays the remaining 20 per cent. Thus, the employee can enjoy free public transport.
Bicycle
The bicycle allowance will be mandatory for all private sectors from 1 May 2023. It is compulsory to reimburse cyclists €0.28/km (2024). This reimbursement is tax-free. Here, it is important to consult your own Joint Committee first. Indeed, if rules on bicycle compensation have already been drawn up here, these rules apply. Thus, it is possible to deviate from the mandatory 0.28 euro/km.
The maximum tax-free bicycle allowance is 0.35 euro/km (2024). With a maximum of €3,500 per year.
On foot & personal transporters
For your commuting on foot or with a personal transporter, you can also get an allowance. Here, the lump sum of a maximum of 490 euros per year (2024) also applies. The tax-free sum of 490 euros is an allowance for both private car, motorcycle, walking and carpooling. So you can only receive 490 euros tax-free once a year.
The legal mobility budget
Depending on previous commuting allowances from the company to the employee, bicycle reimbursement, public transport reimbursement and carpooling reimbursement organised by the employer may fall on top of or within the statutory mobility budget. When is this the case?
On top of the mobility budget
If an employee has any of the above allowances three months before applying for his/her legal mobility budget, the employee can get this allowance on top of the mobility budget. So, for example, this employee gets a legal mobility budget and a bicycle allowance. The employer is not obliged to give this allowance on top. So it is the employer's choice if this is allowed.
Within the mobility budget
If an employee has not received the allowance three months before applying for his/her statutory mobility budget, the employee can only receive these allowances within the mobility budget. This means that the mobility budget can be used to pay for these trips. The employee's legal mobility budget will thus be used, for example, to get his/her bicycle allowance.
Professional trips
Private car
A tax-free allowance of €0.4269/km (January 2024) applies to professional travel. This allowance is adjusted every three months in line with actual fuel prices. Consult the website of your social secretariat to keep up to date with this allowance.
Some Joint Committees also work with an annual adjustment this is 0.4280 euro/km (1 July 2023-30 June 2024). So consult your Joint Committee, to know which regulations to follow.
However, if professional travel exceeds 24 000 kilometres, this reimbursement will be taxed.
Public transport
Public transport tickets can be refunded 100 per cent tax-free.
Bicycle
A bicycle allowance of up to EUR 0.35/km can be given to the employee, as in the case of commuting. The employee pays no taxes and no social contributions on it.
The legal mobility budget
When determining the size of the mobility budget, mission expenses are usually taken into account. No additional allowances are then paid for these missions. As this has already been done in the mobility budget. If this has not yet been taken into account, these expenses can be reimbursed outside the mobility budget. This means that if you drive your own car to a customer, the fuel costs of this trip can be reimbursed on top of the mobility budget.
