Allowances for short-term foreign missions: new list of countries

The costs incurred by a worker (or company manager) during a professional stay abroad of maximum 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 April 2015 have been published recently.

The daily flat-rate allowances applicable for long-term foreign missions are covered in a following Infoflash.

1. Introduction

When a worker goes on a foreign mission, he/she may be entitled to a flat-rate allowance for meals and minor expenses.

In Circulars no. Ci.RH.241/534.514 (AOIF 17/2006) dating from 11 May 2006 and no. Ci.RH.241/598.417 (AAFisc 23/2011) dating from 15 April 2011, the tax administration has set out a number of guidelines.

The flat-rate allowances for foreign missions granted by the employer are considered as costs proper to the employer and they are not taxable if they do not exceed € 37.18 per day. Therefore they can be granted without supporting documents.

If the daily flat-rate allowances exceed € 37.18, they are still accepted as a reimbursement of costs proper to the employer provided they are justified by circumstances specific to the country where the mission is carried out.

In addition, the FPS Finance accepts that the flat-rate allowances paid for foreign missions are considered as a non-taxable reimbursement of costs proper to the employer provided they do not exceed the 'daily flat-rate subsistence allowances' determined per country (the so-called ‘list of countries’) for civil servants belonging to Category 1 of the 'carrière de l'Administration centrale' of the FPS Foreign Affairs, Foreign Trade and Development Cooperation.

Therefore, the FPS Finance accepts the above ' daily flat-rate subsistence allowances' without supporting documents, taking into account that the flat-rate amount of € 37.18 can still be applied.

2. Nature of the subsistence allowance

The daily allowances are deemed to cover expenses during a foreign mission incurred for meals and minor expenses.

Minor expenses are understood to mean the local transport in the country of destination (such as tram, bus, underground, taxi), beverages, snacks, local phone calls and tips. Hotel and other travel expenses are not included.

If the accommodation costs are reimbursed or borne by the employer or company and these also include certain meals or minor expenses, the daily flat-rate allowances which can be taken into account as non-taxable costs proper to the employer or the company, must be reduced by:

• 15 % of the daily flat-rate allowance, for breakfast;
• 35 % of the daily flat-rate allowance, for lunch;
• 45 % of the daily flat-rate allowance, for dinner;
• 5 % of the daily flat-rate allowance, for minor expenses.

3. Workers concerned

The guidelines in the Circular apply to taxpayers who receive remunerations as workers or company managers and for whom travelling to/from abroad are not part of their normal daily activity.

The daily flat-rate subsistence allowances can not serve as a standard for self-employed persons who must justify by supporting documents the authenticity and the amount of the expenses incurred during foreign missions.

4. Mission

Foreign mission is understood to mean a short-term assignment abroad on active service or on instruction of the employer or the company where the worker or the company manager is employed. Short-term is understood to mean a mission of maximum 30 calendar days.

5. Daily allowances

The subsistence allowances stated in the 'list of countries' are daily flat-rate allowances.

The full amount can be taken into account for each full day of absence, this is a day between 2 overnight stays during a mission.

For the days of departure and return, only half of the flat-rate allowance can be taken into account as costs proper to the employer.

The full amount may also be granted for missions with a departure and return within the same twenty-four hours' period with an absence of at least 10 hours. To ascertain whether this is the case, the absence of the worker or the company manager from his/her fixed place of work (work location) until the hour of return to that place must be taken into account.

If the absence is less than 10 hours, only the reimbursement on the basis of the expenses that are justified by presenting supporting documents are taken into consideration for costs proper to the employer. We may assume that the amount of the granted daily allowance is not taxable if the amount does not exceed the similar allowances which the State grants to its staff members (the so-called missions in Belgium).

6. List of countries

The Moniteur Belge of 30 March 2015 has published the list with the flat-rate allowances (Category 1) per country, that are applicable since 1 April 2015.

The list can be accessed through this link.

Source: Ministerial Decree of 23 March 2015 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 30 March 2015. 

FR/NL

Author: Peggy Criel

20/08/2015