Context

Lump-sum reimbursements made by the employer in respect of expenses incurred by an employee for short business trips abroad are accepted as costs proper to the employer in the sense of article 31, §2, 1° in fine, ITC 1992 and are therefore free of income taxes to the extent that the amounts are in line with the daily lump-sum allowances that are paid by the Federal Public Service of Foreign Affairs to its civil servants whilst on mission abroad (see Headline of 7 April 2008 for the latest list *). In this respect, short business trips are defined as trips of up to 30 days. In principle, no lump-sum allowances are accepted for business trips of more than 30 days. In such case, reimbursements can in principle only be classified as costs proper to the employer when made on the basis of documentary evidence.

News

In a ruling of 20 May 2008 (**), the Ruling Commission has agreed that, under certain circumstances, a lump-sum reimbursement can be made for business trips of up to 24 months in case it is difficult in practice to gather proof in the country of destination. The lump-sum reimbursements should in such case be determined based on the list of allowances paid by the Federal Public Service of Foreign Affairs to its posted agents, which are about 60% of the amounts applicable for civil servants on a mission abroad. In the case brought before the Ruling Commission, the countries involved were located in Africa, Latin America and Asia. Please note that the Ruling Commission specifically stated that this lump-sum cost reimbursement cannot be combined with the application of the so-called AGCD-ABOS practice note.

It is to be noted that a ruling is not binding for the tax authorities except in relation to its applicant. Nevertheless, the ruling that was issued can be a relevant source of inspiration for similar cases.

(*) http://news.hrservices.be/?200804070927
(**) http://news.hrservices.be/?lk200810281