Adjustment mileage allowance as from 1 January 2025
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.
The new amount applicable starting from 1 January 2025 until 31 March 2025 is 0.4290 EUR per kilometre.
As a reminder: the amount that was applicable from 1 October 2024 until 31 December 2024 was 0.4293 EUR per kilometre. Note that there is a slight reduction compared to the previous amount.
However, it is alternatively possible to opt for the annual indexation of the mileage allowance. An employer can therefore choose between the quarterly indexed amounts or the annual indexed amount, which amounts to 0.4415 EUR per kilometre for the period from 1 July 2024 to 30 June 2025. In the latter case, the employer should thus maintain the same amount during the entire period.
We reiterate 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.
The quarterly and yearly indexed amounts are maximum amounts. 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.
