The indexation rule for the mobility allowance is known

As well the amount of the mobility allowance ('cash for car') as the taxable benefit resulting from it are indexed annually. The indexation mechanism and the 2019 indexation coefficient were recently published. 

Amount of the mobility allowance and the taxable benefit

As well the mobility allowance as the taxable benefit are calculated on the basis of a formula.

The mobility allowance is calculated as follows: list price of the returned company car (or the company car to which the employee is entitled) x 20 % x 6/7. If the employer bears all or part of the fuel costs, the percentage is 24%. If the employee paid a personal contribution for the company car, the amount of the mobility allowance is diminished by this personal contribution.

In order to calculate the taxable benefit, the following formula is used: list price of the returned company car (or the company car to which the employee is entitled) x 4 % x 6/7. If the employee paid a personal contribution for the company car, the amount of the taxable benefit is diminished by this personal contribution.

Indexation

On 1 January of each year, the list value on which the mobility allowance is calculated and the taxable benefit are indexed in the same way.

For the indexation, a new index is used: the averaged mobility index. In order to determine the indexation coefficient of the current year (N), the averaged mobility index of December of the previous year (N-1) is divided by the averaged mobility index of December of the penultimate year preceding (N-2).

For 2019, the indexation coefficient is 1.0188 (= 101.86 (averaged mobility index December 2018)/99.98 (averaged mobility index December 2017)).

This indexation coefficient will be applied with retroactive effect from 1 January 2019, to the mobility allowances (and the resulting taxable benefits) granted since 2018. Mobility allowances granted for the first time in 2019 will not be indexed until 1 January 2020.

Sources: Royal Decree of 7 April 2019 introducing an indexation mechanism in implementation of Article 12, §2 of the Act of 30 March 2018 on the introduction of a mobility allowance, Belgian Official Gazette of 16 April 2019; FPS Economy, S.M.E.s, Self-employed and Energy, Mobility Index - Notice, BOG of 16 April 2019.