Mobility allowance: indexation 2020

Author: Peggy Criel (Legal Expert)
Date:

Both the amount of the mobility allowance ('cash for car') and the taxable benefit resulting from it are indexed annually. The indexation coefficient for 2020 has been published.

Amount of the mobility allowance and the taxable benefit

Both the mobility allowance and 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 each year, the list value serving as the basis for calculating the mobility allowance and the taxable benefit is indexed in the same way. If the list value was indexed in 2019, the indexation coefficient for 2020 will be applied to this indexed amount.

For 2020, the indexation coefficient is 1.0202 (= 103.92 (averaged mobility index December 2019)/101.86 (averaged mobility index December 2018)).

Mobility allowances granted for the first time in 2020 will not be indexed until 1 January 2021.

 

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