Mobility budget: some improvements from 2024

Author: Laurence Philippe (Legal expert)
Read time: 3min
Publication date: 08/12/2023 - 11:32
Latest update: 08/12/2023 - 11:35

From 1 January 2024, a number of legislative changes should have a marginal impact on the mobility budget. These changes, stemming from the projet de loi portant des dispositions fiscales diverses (Miscellaneous Tax Provisions Bil), will deliver minor improvements to the mobility budget.

It should be noted that the new formulas for calculating the mobility budget will also come into force on this date.

Mobility budget: brief reminder

The mobility budget, already familiar to employees with a company car, is a budget that allows the total cost of the car to be reallocated to other modes of transport. It is divided into three pillars, offering beneficiaries the opportunity to choose an environmentally-friendly car, sustainable means of transport and to receive the balance in cash, subject to a contribution of 38.07%.

Extended scope of application

The scope of the mobility budget has been extended to include local representatives, i.e. mayor, aldermen and provincial deputies. These individuals, who had previously been ineligible for the scheme, will now be able to benefit from the mobility budget.

Sustainable means of transport - EEE

The territorial scope of Pillar 2, which allows the use of different sustainable means of transport, has been clarified. The whole of Pillar 2 can now be used in the European Economic Area (EEA). It is therefore possible to use not only public transport in the EEA, but also taxis, car hire, etc.

Minimum and maximum mobility budget thresholds

The initial amount of the budget is determined by the total gross annual cost of the company car to which the employee waives their right (or was entitled), with possible adjustments in the event of a change of function or promotion. From 1 January 2024, the new calculation formulas will have to be used to determine the amount of the budget.

The budget calculated in this way must fall within a range of between €3,000 and €16,000 and may not exceed a fifth of the employee’s salary. The thresholds of €3,000 and €16,000 will be indexed annually from 1 January 2024 to €3,055 and €16,293 respectively on the basis of the smoothed health index.

Management fees moved to Pillar 2

The management costs of the entire mobility budget were part of Pillar 1. From 1 January 2024, these costs will form part of Pillar 2. As a direct consequence, they will now be fully exempt.

Next steps

These various changes should improve the mobility budget further still and make it more attractive. Would you like to set up a mobility budget in your company? If so, get in touch with one of our Legal Partners!

Source: Projet de loi portant des dispositions fiscales diverses (Bill containing various tax provisions) (55-3607)

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