Compensation employees' professional mileage: the maximum amount of compensation has increased

Since 1 July 2022, the maximum amount of the fixed mileage compensation will be set at EUR 0.4170 per kilometer. This is an increase of the amount, which is EUR 0.3707 until 30 June 2022.

This fixed amount can be granted to an employee who uses his own vehicle (car, motorcycle or moped) to travel for his employer or for his home-work travel. For tax purposes, travel between the place of residence and the fixed place of work cannot be considered as a professional travel and hence cannot be regarded as "travel on behalf of the employer".

From a tax perspective, this mileage compensation is considered as a non-taxable reimbursement of costs proper to the employer for professional travel. However, for a home-work travel, this mileage compensation is exempt from taxes up to an amount of EUR 430 per annum (amount for income year 2022). The balance is taxable income which is taxed against the progressive tax rates, like ordinary remuneration.

From a social security perspective, this payment by the employer is not regarded as remuneration since it is a cost that is at charge of the employer. Therefore, it is exempted from social security contributions, both for professional travel and home-work travel. As a rule, the National Social Security Office takes the same amounts into account as those provided by tax legislation.

The new amount applies since 1 July 2022 until 30 June 2023.

Action point

When granting the professional mileage compensation, you can take into account, since 1 July 2022, the new amount of mileage compensation: EUR 0.4170 per kilometer.