Representation Allowances Compass

rep_allowance Lump sum cost allowances are not subject to social security contributions and taxes, provided that the employer can demonstrate that the reimbursed lump sum expenses represent the actual costs incurred by the employees/directors and that the lump sum amounts are established according to reasonable standards.

In order to determine the reasonable standards in each industry, Deloitte tax professionals have developed a specific benchmark, based on numerous administrative decisions issued by the Belgian tax authorities over the 5 last years. Accessing the Representation Allowance Compass will give you a fair idea of the amounts usually reimbursed in a specific industry sector, according to the latest state of the administrative practice.

Please note that below amounts are purely indicative and that a different position may apply from a social security perspective. Each situation should be analysed on a case by case basis, as amounts can vary depending on the size of company, and the type of functions included. Please refer to Deloitte tax specialist to receive guidance on how to document your file towards the tax authorities.

Common representation allowances within your industry sector?

The monthly amounts usually reimbursed in a specific industry sector differentiate depending on the sector in which your daily activity takes place. Select your industry sector in the below dropdown box to know the monthly amounts that are usually reimbursed according to the latest state of the administrative practice as based on different administrative decisions issued by the Belgian Tax authorities.

Industry Sector:

Category 1 Senior Management (?)
Category 2 Middle Management (?)
Category 3 First-level Management (?)
Category 4 Senior Operational staff (?)
Category 5 Operational staff (?)

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How can we further help you? 

Over the years, Deloitte tax professionals have developed an expertise on this topic and can provide you with ad hoc assistance on:

        -     Determining the competent entity within the Belgian tax authorities and helping you
               to determine the opportunity to ask for a Ruling with the Ruling Commission
               (Service des Décisions Anticipées / Dienst voorafgaande beslissingen);
        -     Determining the acceptable lump sum amounts, according to the industry sector and the
               activity of the employees/directors concerned;
        -     Describing the categories of functions and the different type of costs per category.
        -     Assisting in case of a test period (communication to the employees/directors concerned,
              drafting of questionnaire, analysis of the figures);
        -     Drafting of the request;
        -     Assisting with communication process inside your company.

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Sofie Van Breedam
Tax Partner

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