Adjustment mileage allowance as from 1 October 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.
The new amount applicable starting from 1 October 2023 until 31 December 2023 is € 0.4259 per kilometre.
As a reminder: the amount that was applicable from 1 July 2023 until 30 September 2023 was € 0.4237 per kilometre. Note that there is an increase compared to the previous amount.
However, based on recent changes in instructions from the tax authorities (which have been confirmed by the social security authorities), it is again possible to opt for the annual indexation of the mileage allowance. An employer can therefore choose between the quarterly or the annual indexation, which amounts to € 0.4280 per kilometre for the period from 1 July 2023 to 30 June 2024. 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.
