Allowances for long-term foreign missions: new list of countries as from 1 October 2017

Author: Peggy Criel
Read time: 4min
Publication date: 03/04/2019 - 13:11
Latest update: 03/04/2019 - 13:11

The costs incurred by a worker (or company manager) during a professional stay abroad of more than 30 calendar days may be reimbursed as a (non-taxable) daily flat-rate allowance. The amounts of these daily flat-rate allowances applicable as from 1 October 2017 have been published recently.

1. Introduction

The tax administration accepts that for a work-related business trip abroad of more than 30 calendar days, daily flat-rate allowances can be granted as a reimbursement of costs incurred by the worker (or the company manager) and that these can be exempt from taxes.

2. Workers concerned

This system only applies to persons who receive remunerations as a worker or a company manager.

3. Constraints to be respected

The daily flat-rate subsistence allowances granted as a reimbursement of costs incurred by the worker (or the company manager) during a business trip abroad of more than 30 consecutive calendar days are considered as costs proper to the employer provided that:

  • the maximum amount of these daily flat-rate subsistence allowances does not exceed the daily flat-rate subsistence allowances established per country for the civil servants 'posted' abroad (see list of countries) of the FPS Foreign Affairs, taking into account that the amount of € 37,18 can still be applied. If the daily flat-rate subsistence allowances exceed the amounts stated on this list, they must be considered in principle as taxable remuneration;
  • the granting or payment of these flat-rate allowances for the same mission is limited to a maximum of 24 months;
  • the granting or payment is interrupted should the worker (or company manager) settle definitively abroad.

The business trip abroad must be long-term, this implies more than 30 consecutive calender days (but with a maximum of 24 months) for the same mission for professional purposes. The subsistence period voluntarily extended by the worker (or company manager) is not taken into account for the calculation of those 30 days.

4. Nature of the subsistence allowance

The amount of the daily flat-rate subsistence allowances is deemed to cover the expenses for meals and minor expenses.

Minor expenses are understood to mean the local transport in the country of destination (such as bus, tram, underground, taxi), beverages, snacks, local phone calls and tips.

The allowances neither cover the subsistence costs nor the travel expenses to and from other countries.

If the overnight subsistence expenses are reimbursed or borne by the employer and these also include certain meals or minor expenses, the daily flat-rate subsistence allowances must be reduced by:

  • 15 % for breakfast;
  • 35 % for lunch;
  • 45 % for dinner;
  • 5 % for minor expenses.

5. Daily allowances

The full amount of the daily flat-rate subsistence allowance can be considered as a non-taxable reimbursement of costs for each full day of absence (this is a day between two overnight stays during a mission abroad).

For the days of departure and return of a business trip abroad, the amount of the daily flat-rate subsistence allowance must be divided by two. The above reductions in the form of a % will not be applied.

Particulars:

  • If the mission abroad takes place in several countries, the amount of the daily flat-rate subsistence allowances in connection with the location of the last overnight subsistence will be determining for the following twenty-four hours' period.
  • If the employer grants luncheon vouchers to reimburse the meal expenses during the subsistence abroad, the employer's contribution to the luncheon voucher (maximum € 6.91/luncheon voucher - amount 2017) must be deducted from the flat-rate subsistence allowance.
  • The employer cannot combine the granting of the daily flat-rate subsistence allowances with a reimbursement of meal expenses and minor expenses based on supporting documents.
  • The daily flat-rate subsistence allowances cannot be combined with the benefit granted to Belgian workers who are employed in a country outside Europe with which Belgium has not concluded a double tax convention. That benefit consists of a 30 % deduction of professional expenses.

6. List of countries

The Moniteur Belge of 3 October 2017 has published the list with the flat-rate allowances per country, that are applicable since 1 October 2017.

The list can be accessed through this link.

Sources: Circular Ci.RH.241/609.972 (AAFisc No.38/2013) dating from 10 April 2013; Ministerial Decree of 15 September 2017 establishing the subsistence allowances granted to delegates and civil servants subordinate to the Federal Public Service of Foreign Affairs, Foreign Trade and Development Cooperation who go abroad or reside in international commissions with an official mandate, Moniteur Belge 3 October 2017. 

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