Reimbursement of executive expenses
The executive expense plan is a simple way to simplify your life 🏖️. It covers small expenses that you pay, but which are actually charged to your company. For example, you may pay for an Internet connection at home, which you use partly for your work. The advantage is that this lump sum is deductible for your company and not taxable for you (gross for net).
Is this flat-rate 100% deductible? That depends on the expenses covered by the lump sum. If it's just office expenses, it's 100% deductible. If other expenses, such as parking or entertainment, are added, a prorata will have to be calculated.
Your lump-sum deduction is based on two methods:
1. Amounts defined by serious standards
This category concerns expenses accepted by the tax authorities (at least, the monthly amounts set by the State for its civil servants):
Garage to secure your company car: €50
Parking during business trips: €15
Car wash: €15
Use of a private computer: €20
Use of a private Internet connection: 20€ (in French)
Entertainment (small gifts, sandwiches, meal at your home...): €50
Use of private telephone (handset and subscription): €25
Professional journals, newspapers or magazines: €30
Kilometric allowance for business trips (not home to work) with your private vehicle: 0.4170€/km (until June 2023)
Subsistence allowance for business travel (in Belgium or abroad): see the SPF website for amounts.
If you use one of these lump-sum allowances, you can no longer enter invoices or receipts relating to this category of expense in your accounts. These packages replace actual expenses.
2. Amount defined on the basis of reality ("reasonable standards")
This category concerns expenses for which you have to prove the reality of the amounts. We recommend that you keep a record for a period of three months, in order to provide you with a basis of argument in the event of a tax audit.
This category mainly concerns home office expenses (items not covered by the above-mentioned amounts, such as a printer, energy, cleaning, etc.). For this item, it is not permitted to use the lump sum used on the ONSS website. A monthly amount of €120 is regularly observed among BILLY customers.
💡 A lump sum for expenses is always fiscally dangerous. Keep a statement of expenses for a test period, such as a quarter. With this statement, you strengthen the arguments to defend your package.