Adjustment mileage allowance as from July 1, 2020
When an employee uses his own car to travel for professional purposes, the employer can reimburse him for the costs incurred.
It is not necessary to be able to prove the exact amount of these costs as the authorities have fixed a maximum lump sum per kilometre that is accepted as a cost proper to the employer. It follows that no taxes and social security contributions are payable for the mileage allowance if the maximum is not exceeded.
This amount is adjusted every year.
The new amount applicable from July 1, 2020 until June 30, 2021 equals €0,3542 per kilometre.
As a reminder: the amount that was applicable from July 1, 2019 until June 30, 2020 was €0,3653 per kilometre. Note that there is a decrease compared to the previous amount.
An additional condition is that the number of kilometres per year should not be abnormally high (max. 24.000 kilometres per year). If the number of kilometres is higher, proof must be furnished.
This amount is a maximum amount. Employers can reimburse the driven kilometres at a lower rate without any discussion. A higher reimbursement is also possible, but in that case the burden of proof lies with the employer and the employee. They should be able to prove that the allowance granted is in line with the actual cost.