Mileage Allowance for Professional Travel in 2024

In Belgium, the mileage allowance is an important compensation for employees who use their private vehicles for professional travel. A correct and tax-free allowance can significantly impact the net income of employees. This article covers everything you need to know about the mileage allowance in 2024, including how it is calculated, whether it is mandatory, and the maximum tax-free mileage allowance.

This mileage allowance should not be confused with the commuting allowance for traveling to work using a private vehicle. The mileage allowance discussed here applies only to professional travel performed as part of job duties.

What Is the Mileage Allowance for Professional Travel in 2024?

The mileage allowance for professional travel is a tax-free amount that an employer can grant to employees using their private vehicle for business purposes (e.g., visiting clients). Since 2022, there are two types of indexed mileage allowances in Belgium:

1. Annually Indexed Mileage Allowance (Royal Decree of January 18, 1965)
2. Quarterly Indexed Mileage Allowance (Royal Decree of July 13, 2017)

The quarterly indexed allowance is adjusted every quarter to better reflect fluctuations in fuel prices and other transportation costs. The applicable allowance depends on the company’s sector. If the applicable rule is not specified in the relevant Joint Committee, the employer may choose which allowance to follow for the entire validity period.

For the fourth quarter of 2024, the maximum tax-free mileage allowance is set at €0.4293 per kilometer. For the annually indexed allowance, the rate is €0.4415 per kilometer for the period from July 1, 2024, to June 30, 2025. These maximum rates also apply to company directors who use their private vehicles for professional travel on behalf of their own company.

Employers may choose to pay employees a higher mileage allowance, but any amount exceeding these limits is considered taxable income.

How Do I Calculate the Mileage Allowance for Professional Travel?

Calculating the mileage allowance is straightforward and follows this formula:

Formula:
Number of kilometers driven × Mileage allowance

Example Calculation:

• An employee drives 40 kilometers daily for professional purposes.
• Over 20 working days per month, this totals 800 kilometers per month.
• The company’s sector follows the quarterly indexed mileage allowance.

Calculation:
800 km × €0.4293 = €343.44 tax-free allowance per month.

This allowance is typically paid monthly and helps employees cover part of their travel costs. The total amount paid by the employer must also be included on the employee’s tax certificate.

Why Is the Maximum Mileage Allowance Now Adjusted Quarterly?

Since 2022, Belgium adjusts the maximum tax-free mileage allowance every quarter to better respond to changes in fuel prices and general transportation costs. By making quarterly adjustments, the government ensures that the allowance remains realistic and fair for both employers and employees.

The allowance is determined by the Federal Public Service (FPS) Finance and can vary each quarter. Employers can reimburse employees tax-free for professional travel up to the set maximum amount for each quarter. This amount may increase or decrease based on economic conditions.

A tax-free mileage allowance is valid for up to 24,000 kilometers per year per employee according to tax authorities. The National Social Security Office (RSZ) has not set a maximum limit.

Table: Maximum Tax-Free Mileage Allowance for Professional Travel by Quarter

Is a Mileage Allowance for Professional Travel Mandatory?

Employers are required to reimburse employees for expenses incurred during professional travel. The fixed mileage allowance for professional purposes is one option for doing so, but it is not legally mandatory in Belgium. Conditions and amounts can vary by company and sector and are often outlined in employment contracts or company policies.

What Is the Maximum Mileage Allowance in Belgium?

The quarterly indexed mileage allowance is capped at €0.4293 per kilometer for the period from October 1, 2024, to December 31, 2024. The annual indexed allowance is capped at €0.4415 per kilometer for the period from July 1, 2024, to June 30, 2025. These amounts can be paid tax-free by the employer to the employee.

If an employer pays more than the maximum allowance, the excess is considered taxable income. Most companies adhere to the maximum tax-free amount per kilometer to avoid additional costs.

What Is the Fixed Mileage Allowance?

The fixed mileage allowance is a predetermined tax-free reimbursement that employers provide to employees using their private vehicles for work-related travel. This allowance is intended to cover actual costs without requiring employees to submit receipts for every kilometer driven.

The fixed allowance applies only to work-related travel. Employees who regularly travel for work can benefit from this arrangement as it reduces administrative burdens.