Adjustment mileage allowance as from 1 January 2023
Employees who use their own car to travel for professional purposes, can receive a reimbursement from their employer for the costs incurred.
It is not necessary to be able to prove the exact amount of these costs as the authorities have fixed a maximum lump sum per kilometre that is accepted as a cost proper to the employer (“mileage allowance”). This mileage allowance is exempt from social security contributions and taxes if the maximum amount per kilometre is not exceeded.
As you could read in our newsletter of 16 December 2022, the mileage allowance is no longer indexed annually, but quarterly. The new amount applicable from 1 January 2023 to 31 March 2023 is € 0.4259 per kilometre.
As a reminder: the amount that was applicable from 1 October 2022 until 31 December 2022 was € 0.4201 per kilometre. Note that there is an increase compared to the previous amount.
An additional condition is that the number of kilometres per year should not be abnormally high (max. 24,000 kilometres per year). If the number of kilometres is higher, proof must be furnished.
This amount is a maximum amount. Employers can reimburse the driven kilometres at a lower rate without any discussion. A higher reimbursement is also possible, but in that case, the burden of proof lies with the employer and the employee. They should be able to prove that the allowance granted is in line with the actual cost.
