The expense allowance for executives makes life easier 🏖️. It covers small expenses that you pay out of pocket but which are actually borne by your company. For example, you pay for a home internet connection that you partly use for work. The advantage is that this allowance is deductible for your company and not taxable for you (gross equals net).

Is this allowance 100% deductible? It depends on the expenses covered by the allowance. If it covers only office costs, it will be 100% deductible. If other expenses such as parking or representation are included, a pro-rata calculation will be required.

Your allowance is built on the basis of two methods:

This category covers expenses accepted by the tax authorities (at least the monthly amounts set by the State for its civil servants):

If you use one of these allowances, you can no longer submit invoices or receipts related to that expense category in your accounts. These allowances replace actual costs.

This category covers expenses for which you must prove the actual amounts. We recommend keeping a record over one quarter in order to build a solid argument in the event of a tax audit.

This category mainly covers home office costs (items not covered by the amounts mentioned above, such as a printer, energy, cleaning...). For this item, it is not permitted to use the flat-rate allowance used by employers on the NSSO website. A monthly amount of €150 is regularly observed among BILLY clients.

​💡 An expense allowance always carries a tax risk. Keep an expense record during a test period, for example one quarter. This record strengthens your case when defending your allowance.