New energy measures: impact on commuting and the mileage allowance (Q2 2026)
In response to the recent rise in energy prices, the government has announced temporary measures to support employees who use their own car or a company car without a fuel card or charging card for commuting and/or business travel.
1. Tax credit in case of an increase in the commuting allowance
This measure was published in the Belgian Official Gazette on 8 June 2026 and has therefore entered into force. It applies during the months of May, June and July 2026 (subject to possible extension).
Employers who increase the commuting allowance or introduce it for the first time for employees who travel to work with their own car or a company car without a fuel card or charging card may, subject to certain conditions, benefit from a tax credit (to be offset against corporate income tax).
- Increasing the existing allowance:
If an employer increases the existing commuting allowance for the these employees in May, June and/or July 2026, the employer may claim a tax credit. The tax credit is equal to the number of kilometres covered by the higher allowance multiplied by the amount of the increase per kilometre. However, the amount of the tax credit is capped at 20% of the commuting allowance granted on 1 April 2026 and amounts to a maximum of 0.10 EUR per kilometre.
For example: As from 1 May 2026, an employer increases the commuting allowance from 0.20 EUR per kilometre to 0.25 EUR per kilometre. The increase is equal to 0.05 EUR per kilometre, but the tax credit will only be equal to 0.04 EUR per kilometre (= 0.20 EUR x 20%). -
Introducing a new allowance:
If, as from 1 May 2026, an employer introduces a commuting allowance for the first time for employees who travel to work with their own car or a company car without a fuel card/charging card, they may claim a tax credit equal to 20% of that allowance, also capped at 0.10 EUR/km. The new allowance must be at least 0.10 EUR/km.
For example: An employer introduces a commuting allowance of 0.10 EUR per kilometre as from 1 May 2026. In return, they will be able to claim a tax credit equal to 0.02 EUR per kilometre.
Employers are not obliged to increase or introduce the commuting allowance, unless this is provided for at sector level.
If an employer decides to do so, he must demonstrate in the application that the following conditions are met in order to obtain the tax credit:
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The increase/introduction applies to employees who use their own car or a company car without a fuel card or charging card to travel to work.
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The allowance relates to the months of May, June and/or July 2026 and must be paid or granted by 31 October 2026 at the latest.
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The adjusted allowance must be set out in writing (for example, via a company collective agreement, an addendum to the employment contract, or a written communication by email or via the intranet).
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The employer must actually bear the cost of the commuting allowance.
Employees who receive a higher commuting allowance in accordance with the abovementioned rules will be granted an additional tax exemption on top of the existing exemption of 500 EUR (fiscal year 2026). Only the portion of the commuting allowance covered by the tax credit is eligible for this additional exemption. The portion of the higher commuting allowance that is not covered by the tax credit falls within the existing exemption of 500 EUR and is therefore not subject to any additional exemption.
The increase or introduction of the commuting allowance is exempt from social security contributions for both employers and employees.
2. Increased mileage allowance in Q2 2026
Employees who use their own car to travel for professional purposes, can receive a reimbursement from their employer for the costs incurred. The government sets a maximum lump sum amount per kilometre that is accepted as a cost proper to the employer (“mileage allowance”). Employers may choose between a quarterly indexed amount or an annually indexed amount unless sectoral rules determine this choice. For further information, we refer to our newsletter of 13 April 2026.
For Q2 2026, the original quarterly lump sum of 0.4327 EUR/km is temporarily split into monthly amounts, with retroactive effect from 1 April 2026:
- The amount for April 2026 is 0.4571 EUR/km.
- The amount for May 2026 is 0.4841 EUR/km.
- The amount for June 2026 is not yet known. We will keep you informed.
The tax authorities are exceptionally allowing employers who opted for the annual lump sum for Q2 2026 to switch to the abovementioned monthly amounts. The NSSO does not accept this switch for the time being.
Please do not hesitate to email tax@propay.be if you require further information or assistance.
