Daily Allowance for Foreign Business Trips

Employees on foreign business trips may receive a flat-rate daily allowance that is exempt from taxes and social security contributions. The amount is based on the “residence allowances” granted by the Belgian Ministry of Foreign Affairs, with a distinction between:

• Short-term assignments (max. 30 calendar days – column A)
• Long-term assignments (more than 30 consecutive calendar days up to 24 months – column B)
   

Who Is Eligible?

The allowance can be granted to employees and company directors who primarily perform sedentary work and occasionally travel abroad. If international travel is part of the daily job routine, the flat-rate allowances generally do not apply.

 
What’s Included in the Allowance?

The flat-rate covers:

• Meals
• Local transportation
• Phone communication
• Other out-of-pocket expenses

If the employer directly pays for meals:

• Deduct 35% for lunch
• Deduct 45% for dinner
  Also deduct the employer’s contribution to meal vouchers for those days.

What’s Not Included?

• Accommodation costs
• Travel to/from the foreign destination
  These require supporting documents.
   

Allowance Calculation

• A full daily allowance may be granted for each full day of absence (i.e., between two overnight stays).
• For same-day trips lasting at least 10 hours, a full allowance is also permitted.
• For multi-day trips, a half-day allowance (50%) may be granted for the departure and return days.
• If multiple countries are visited, the overnight location determines the allowance for the next day.

If the employee permanently relocates abroad, the allowance must end. Voluntary trip extensions are not considered business travel.

Tax Deductibility

The tax authorities accept full deductibility of these allowances for employers. The usual deduction limit for restaurant expenses does not apply.