Lump-sum allowances for foreign business trips can qualify as employer costs if they do not exceed the daily lump-sum allowances applied by the Ministry of Foreign Affairs for their seconded employees. For the employees, these allowances are not taxable.
A distinction needs to be made between short foreign business trips of maximum 30 calendar days (“category 1”) and long foreign business trips of more than 30 calendar days but less than 24 months (“category 2”). The lump-sum allowance includes lunch and dinner costs, drinks and snack costs, local travel costs, telecommunication costs, and other small expenses.
A distinction needs to be made between short foreign business trips of maximum 30 calendar days (“category 1”) and long foreign business trips of more than 30 calendar days but less than 24 months (“category 2”). The lump-sum allowance includes lunch and dinner costs, drinks and snack costs, local travel costs, telecommunication costs, and other small expenses.
The new amounts are applicable as of August 1, 2025. The Belgian tax authorities also provide more clarifications on the minimum duration of the short foreign business trip and the allowances for departure and return days.
- As of January 1st, 2025, it is no longer required that the minimum duration of a one-day business trip exceeds 10 hours.
- Moreover, until now, for business trips of more than 1 day the lump-sum allowance for the day of departure and return had to be limited to 50%. As of January 1st 2025, this will no longer be the case. However, note that when the employer also pays or bears the cost of lunch, the amount of the allowance needs to be decreased by 35%. The same principle applies to dinner costs (45%) and to other small expenses (20%).
