As from 1 July 2019, the maximum amount of the fixed mileage compensation is set at EUR 0.3653 per kilometer. This is an increase of the amount, which was EUR 0.3573 until 30 June 2019.
This fixed amount can be granted to an employee who uses his own vehicle (car, motorcycle or moped) to travel for his employer. 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.
In the event the employer would grant a higher compensation, the difference will possibly be regarded upon as a taxable benefit.
From a social security perspective, this payment by the employer is not regarded as remuneration since it is a cost proper to the employer. Therefore, it is exempted from social security contributions. As a rule, the National Social Security Office takes the same amounts into account as those provided by tax legislation.
The new amount applies from 1 July 2019 until 30 June 2020.
Action point
When granting the professional mileage compensation, you can take into account, as of 1 July 2019, the new amount of mileage compensation: EUR 0.3653 per kilometer.
