Kilometre allowance: significant increase from 1st July 2024

Author Alexia Buyl  (Legal Expert)
Read time 3min
Last updated 24/07/2024 - 14:45

As an employer, you can grant a flat-rate kilometre allowance to your employees who use their own car, motorbike or moped for business travel. From 1st July 2024, the new amounts of this allowance must be taken into account.

Quarterly indexation

In order to react more quickly to fluctuations in fuel prices, since 1st October 2022, the amount of the kilometre allowance is indexed on a quarterly basis. The new amount to be complied with from 1st July 2024 is of 0.4297 EUR/km. 

If the kilometre allowance you grant does not exceed 0.4297 EUR/km, it will be considered as a tax-free reimbursement of costs proper to the employer, exempt from social security contributions. 

In a nutshell, the following amounts must be applied for 2024:

1st January 2024 — 31st March 2024 0.4269 EUR/km
1st April 2024 — 30 June 2024 0.4265 EUR/km
1st July 2024 — 30 September 2024 0.4297 EUR/km

Annual indexation

In addition to the quarterly-indexed kilometre allowance, there is also an annually-indexed kilometre allowance. For the period from 1st July 2024 to 30 June 2025 included, this allowance will amount to 0.4415 EUR/km.

If the kilometre allowance you grant does not exceed 0.4415 EUR/km, it will be considered as a tax-free reimbursement of costs proper to the employer, exempt from social security contributions.

As an employer, you can choose to apply the flat-rate system on an annual basis. You will then have to apply it throughout the period from 1st July 2024 to 30 June 2025 included. During this period, you will not be able to switch to the quarterly flat-rate system. This will only be possible from 1st July 2025 at the earliest.

Obligation to grant a kilometre allowance

As an employer, you must provide your employees with the resources they need to do their work. Therefore, if your employees use their private vehicles for business travel, you must cover those costs.

However, many sectors require the payment of a flat-rate kilometre allowance. If this is the case in your sector, you will have to pay the amount determined by your joint committee. This often (but not always) corresponds to the quarterly or annual indexed kilometre allowance.

Some sectors refer to a recent Royal Decree (dated 2017) for the payment of the kilometre allowance. If this is the case in your sector, you must apply the quarterly indexed kilometre allowance.

Other sectors sometimes refer to an old Royal Decree (dated 1965). If this is the case in your sector, the indexation of the kilometre allowance remains fixed annually on 1st July. 

To know the amount of kilometre allowance you have to grant, check the information regarding your sector.

Nothing is provided for in your sector? In this case, you can opt for one of the two amounts (quarterly or annual). If you choose to apply the flat-rate system on an annual basis, you will have to apply this amount for the entire period from 1st July 2024 to 30 June 2025 included. 

Sources: Circular 2023/C/78 on kilometre allowance for business travel ; Circular No. 741 - Adjustment of the kilometric allowance amount - Period from 1 July 2024 to 30 September 2024, Belgian Official Gazette of 15 July 2024 ; Circular No. 742 of 24 June 2024 - Adjustment of the kilometric allowance amount - Period from 1 July 2024 to 30 June 2025, Belgian Official Gazette of 17 July 2024.

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