Flat-rate mileage allowance from
1 July 2022 to 30 June 2023
October 2022 – The amount of the mileage allowance for federal civil servants who travel for the government with their own car is traditionally communicated around 1 July. This communication is important for business owners, accountants and tax advisors, as the amount of this allowance is also relevant for tax purposes.
With own vehicle
If, as an employer, you ask your employee to make a business trip with his or her own vehicle, it is logical that you pay him or her an allowance for the costs incurred. Strictly speaking, the employee must prove these costs. But for practical reasons, the tax authorities accept that you should reimburse them on a flat-rate basis.
The allowance may not exceed a certain amount, equal to the flat-rate mileage allowance that federal civil servants receive for the use of their personal motor vehicle for service purposes.
For the period from 1 July 2022 to 30 June 2023, this maximum amount is 0.417 euro/km. In the previous year it was set at 0.3707 euro/km.
But that's not all: in order to compensate somewhat for the sharp rise in fuel prices in the first quarter of 2022, the minister has decided to apply a one-off retroactive increase in the kilometre allowance for the period from March 2022 to June 2022, which will thus rise to 0.402 euros/km.
Please note: the journeys that an employee makes between his home and his fixed place of work are not journeys made on behalf of the employer! These journeys are therefore not taken into account and if, as an employer, you pay an allowance for these journeys, this part of the allowance will in principle be considered as remuneration (even if various exemptions are possible).
Maximum 24,000 kilometres
For travel on behalf of the employer, the tax authorities accept a flat rate as long as the total distance travelled is less than 24 000 kilometres. Beyond 24,000 kilometres, the tax authorities will no longer accept the flat-rate calculation and you will therefore have to provide proof.
Moreover, the amount of EUR 0.4170 per kilometre is only a flat rate. If the worker can prove higher costs, you can pay him/her a higher allowance, provided that the necessary proof is produced.
Please note that this regulation also applies to the NSSO. In principle, all the allowances you pay to the employee are considered to be remuneration, but expenses that are specific to the employer are excluded from remuneration, and for travel expenses, you can use the same lump sum as that used by the tax authorities.
Can you, as an employer, deduct this allowance?
Until the 2020 tax year, fuel costs on the one hand and all other car costs on the other hand were treated differently for corporation tax. For the calculation of the expense deduction, the lump sum was therefore split into a part for fuel and a part for other costs (such as depreciation and vehicle maintenance costs).
However, following a radical change in the deductibility of car expenses as of 1 January 2020 (tax year 2021), this breakdown is no longer necessary. As of the 2021 tax year, all car expenses are deductible on the basis of the following formula:
120% - (0.5 x coefficient x CO2 emission (in g/km))
The coefficient is :
1" for diesel cars ;
0.90" for cars (with less than 12 fiscal horsepower) running on natural gas; and
0.95 for cars with other engines (petrol, electric, LPG, etc.).
The deduction calculated using this formula cannot be more than 100% or less than 50% (or 40% if the car emits more than 200g of CO2/km).
The distinction between fuel costs and other costs is therefore no longer relevant.
Volunteers
In addition to the above, the mileage allowance for federal civil servants is also used for another flat-rate calculation. Namely for allowances granted to volunteers.
The status of volunteer does not allow the services provided to be remunerated. Only an allowance for expenses is permitted. In addition to the general monthly and annual maximums, a separate maximum applies to travel allowances. The limit is set at 2,000 kilometres per year per volunteer (there is no limit for volunteers whose activity consists of regularly transporting people). Again, the allowance cannot exceed the mileage allowance for federal civil servants.
Annual adjustment at the hatch?
The Minister recently announced the end of the annual adjustment of the mileage allowance. The indexation will be quarterly from now on. The initiative is commendable, as this will bring the flat-rate allowance closer to the real cost.
On the other hand, it is a double-edged sword. If fuel prices normalise after a while, the allowance will also fall more quickly.
Moreover, it means that the social secretariat will have to adjust the figures every quarter: the worker will know less and less about what he or she will receive at the end of the month, and the employer will be less and less certain of the real cost of his or her staff.
There is a flip side to every coin...
