2024: New year and new tax rules

A few tax innovations have been introduced for the new year 2024. The year 2023 came to a close with the publication in the Belgian Official Gazette of the Royal Decree amending the rules governing withholding tax on the one hand, and the publication of the program law and two laws containing tax provisions on the other hand. Below is a non-exhaustive overview of some of these new features.

Elimination of the withholding tax reduction for single persons

The reduction in withholding tax applicable to single workers/company managers (€12/month in 2023, €22/month in 2022,...) is abolished in 2024. This reduction applied to the withholding tax calculated on the remuneration of single persons, i.e. unmarried people (or certain married people still considered as single for tax purposes, such as married people for the year of their marriage). 

Exemption of expenses for home to work travel

As regards withholding tax, workers benefit from an exemption for employer contributions to home-to-work travel expenses. This exemption depends on the type of transport used (see table below). What's new is that, in order to apply the exemption, you no longer need to ask the worker to confirm in writing that he will not be claiming the deduction of his actual professional costs on his income tax return. The exemption can therefore be applied unconditionally, as long as the allowances relate to the payment or reimbursement of home-to-work travel expenses.

Increase in the bicycle allowance exemption

The subsidy granted to people who commute to work by bicycle or speed pedelec is exempt, provided that the amount of this subsidy does not exceed, in 2024, €0.35 per kilometre (€0.27 in 2023) and €2,500 per year. The annual ceiling is new for 2024 (these two amounts will also apply to the social level from 1 January 2024).

This exemption is automatic for withholding tax purposes. The annual ceiling is controlled per worker and per employer. If either of these ceilings is exceeded, the excess will be treated as taxable remuneration.

For personal income tax, the annual ceiling is controlled per taxpayer and per taxable period (calendar year).

In some sectors, the increase in the maximum exempt amount automatically increases the bicycle allowance. In other sector, the bicycle allowance that must be granted remains lower. In sectors and companies where CLA no. 164 applies, the bicycle allowance will be €0.28 per kilometre in 2024. You can consult our sector-specific information on transport costs to find out which provisions apply in your sector.

Company bikes

The provision of a company bicycle for private use is a tax-exempt benefit, provided that the worker uses the bicycle for commuting to and from work.

This exemption is automatic for withholding tax purposes.

In terms of final tax, however, the exemption will only apply if the worker or company director opts to apply flat-rate expenses. If this is not the case, the company bicycle, valued at its real value, will be considered as a taxable benefit of all kind. This is a nuance newly introduced into the legislation in 2024.

Work bonus

In 2024, the fiscal work bonus will be increased for “very low wages”. The possible repercussions for withholding tax are not yet known.

Sources: Royal Decree of 11 December 2023 amending AR/CIR 92, Belgian Official Gazette of 15 December 2023; Program Law of 22 December 2023, Belgian Official Gazette of 29 December 2023 and Law containing various tax provisions of 22 December 2023, Belgian Official Gazette of 29 December 2023; Draft Royal Decree amending article 19§2 of the Royal Decree of 28 November 1969 implementing the Law of 27 June 1969 revising the Decree-Law of 28 December 1944 concerning social security for workers.