Context

As you know, employees, company directors and professional practitioners (titulaires de professions libérales/beoefenaren van vrije beroepen) can claim deduction of their business expenses either on an actual basis through the production of supporting documentation or on a lump-sum basis with a maximum deductible expense previously set at EUR 3,290.00.

News

As already announced by the Minister of Finance, lump-sum business expenses are raised in the following way (today’s Official Gazette *):

- for employees and profit earners, the first bracket of lump-sum business expenses increases from 26.1% to 27.2% (for income of up to EUR 4,880.00 for 2007); and
- for all eligible categories, the maximum lump-sum business expense amount increases to EUR 3,320.00 for income of 2007.

These new amounts are applicable from income year 2007. The withholding tax system should be adapted accordingly.

(*) http://news.hrservices.be?lk200703301