Belgium: Measures regarding employees provided company cars, transportation benefits

The effective date would be 1 January 2022.

The effective date of the measures would be 1 January 2022.

The rules regarding employees provided with company cars, as initially introduced under the “mobility budget” measures of Law of 17/03/2019, are to be modified. The effective date would be 1 January 2022.

Under the current rules, an employee who has been provided the use of (or is entitled to use of) a company car can:

  • Turn in the car (or renounce use of it), or to opt for a more environmentally friendly car
  • Apply the provided amounts for sustainable means of transport (these amounts are fully exempt from taxes and social security contributions)
  • Receive the remaining amount in cash (subject to social security contributions of 38.07% but fully exempt from tax)

Changes (to be published by royal decree) would provide more information regarding the calculation, and would allow a choice between actual costs and a lump-sum amount. The new measures would provide new limits (a range between €3,000 and €16,000), with a maximum amount equal to 20% of gross salary.   

If the employee also uses the car for “professional purposes,” the costs relating to such use could be subtracted from the mobility budget as long as the professional costs are still reimbursed on top of the mobility budget. Another change concerns the period of time when the company car is used by the employee. Under this measure, the employee would be able to benefit or qualify for a company car for at least 12 months during the 36 months preceding the application and during three months at the time of the application has been removed.  An employee also could immediately apply for the mobility budget without the waiting period.

Read a December 2021 report prepared by the KPMG member firm in Belgium


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