Flat-rate allowances for domestic subsistence expenses: new rules since 1 September 2017

Private sector employers may refer to the subsistence allowances granted to federal government staff members for the reimbursement of subsistence expenses made by employees on the occasion of business travels in Belgium. The award rules and the amounts of the subsistence allowance changed on 1 September 2017. In a recent circular the FPS Finance amplified on the impact of this change for the private sector.

Principle

The flat-rate allowances granted by an employer as a reimbursement of the subsistence expenses of an employee during business journeys in Belgium are not taxed, provided that their amount does not exceed the corresponding allowances granted by the federal government to its staff members. These allowances are considered as ‘serious standards’.

The eligibility conditions for the subsistence allowances granted to federal government staff members changed in 2017. In a recent circular the FPS Finance amplified on the impact of this change for the private sector.

Subsistence allowances until 31 August 2017

Until 31 August 2017, a private sector employer could refer to the subsistence allowances granted to the highest level of officials for the payment of tax-free subsistence allowances to his workers for business travels in Belgium. When determining the amount of these allowances one must take into account the actual number of travels as well as the imposed minimum requirements with regard to the duration of the travels that were applicable for federal government staff members.

The next amounts were applied since 1 July 2017:

(*) This maximum amount also applied for journeys of a continuous duration of 5 up to 8 hours including the time span between the 13th and 14th hour of the day.

The amounts given in the table covered the expenses for meals and beverages for missions outside the company but on behalf of the company.

Subsistence allowances since 1 September 2017

The eligibility conditions for the subsistence allowances granted to federal government staff members were made more stringent on 1 September 2017. The amounts of the subsistence allowances were also adjusted. These adjustments have an impact on the subsistence allowances that can be granted by a private sector employer. Henceforth a distinction is made between the next allowances for subsistence expenses in Belgium

Daily flat-rate allowance for meal expenses

An employee is entitled to a daily flat-rate allowance for subsistence expenses (meals) only when the next conditions are met:

• the journey has a duration of at least 6 hours. The duration is calculated from the time of departure from the place of employment until the time of return to the place of employment, except if the employee starts his business journey directly from home or returns directly to his home;
• the meal expenses on the occasion of the journey are not taken charge of by the employer or a third party;
• the journey does not give rise to any other benefit that covers the meal expenses.

The amount of the daily flat-rate allowance is determined at EUR 16.73 since 1 September 2017.

When meal vouchers are granted to compensate for meal expenses during domestic business travels, the employer contribution in the meal vouchers must be deducted from the flat-rate allowance.

Monthly flat-rate allowance and monthly flat-rate allowance for internet access and telephone charges

When the employee’s job implies regular journeys outside the company (in general itinerant staff members), the monthly flat-rate allowance can be granted together with a monthly flat-rate allowance for internet access and telephone charges.

The monthly flat-rate allowance is equal to a multiple of the daily allowance. However, the monthly flat-rate allowance cannot exceed 16 times the daily flat-rate allowance (EUR 267.68) in the case of a full-time employment.

For the granting of this monthly flat-rate allowance the conditions with regard to the duration do not apply (minimum 6 hours). The meal expenses on the occasion of the journey cannot be taken charge of by the employer or a third party, neither can the journey give rise to any other benefit covering the meal expenses.

The monthly flat-rate allowance for internet access and telephone charges cannot exceed EUR 60 in the case of a full-time employment.

Supplementary daily flat-rate allowance for subsistence expenses

A supplementary daily flat-rate allowance for subsistence expenses also serves as a cover for housing costs. This allowance is granted to employees who stay overnight at another location in Belgium during the performance of their job.

The allowance is granted when the next conditions are met:

• the housing costs on the occasion of the journey are not taken charge of by the employer or a third party;
• the journey does not give rise to any other benefit of the same nature.

The amount of the flat-rate allowance for housing costs is determined at EUR 125.50 per night since 1 September 2017.

Sources: Q&A Chamber 2013-2014, No. 53-131, 574; Royal Decree of 13 July 2017 determining the grants and allowances of the federal government staff members, Belgian Official Gazette 19 July 2017; Circular 2018/C/8 regarding the allowances of the federal government staff members.