Adjustments mileage allowance

When an employee uses his own car to travel for professional purposes, the employer can reimburse him 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. It follows that no taxes and social security contributions are payable for the mileage allowance if the maximum is not exceeded.

Until now, this amount was indexed annually on 1 July. The amount applicable from 1 July 2021 to 30 June 2022 was € 0.3707 per kilometre. On 1 July 2022, that amount was adjusted to € 0.4170 per kilometre.

To support employees in the light of rapidly rising fuel prices, the government has decided to make the following two changes to this lump sum mileage allowance:

• Quarterly indexation

From 1 October 2022, the mileage allowance will be adjusted quarterly instead of annually. As of 1 October 2022, the amount of the mileage allowance will be € 0.4201 per kilometre.

• One-time retroactive increase

The mileage allowance will be increased one-time retroactively for the period from 1 March 2022 to 30 June 2022 to € 0.4020 per kilometre. As an employer, you can therefore retroactively grant this increased amount.

The government wants to encourage employers to grant the maximum (retroactive) accepted amount and has therefore decided that employers can offset a part of their additional cost through a tax credit. For more explanation on this matter, please contact your accountant or tax advisor.

For clarity’s sake, please find below an overview of the maximum mileage allowance in 2022:

The above amounts are maximum amounts. Employers can reimburse the driven kilometres at a lower rate. 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.

A condition for the lump sum mileage allowance is that the number of kilometres per year cannot be abnormally high (max. 24,000 kilometres per year). If the number of kilometres is higher, proof must be provided.

We will henceforth inform you about the increase of the mileage allowance on a quarterly basis.

Stay informed of all our news? Sign up for our newsletter: