Reimbursement of costs proper to the employer
04 October 2019
Original content provided by BDO Belgium
Employees may be faced regularly with expenses they incur in the course of their business activities. It goes without saying that professional costs are to be reimbursed by the employer.
The a lump sum reimbursement of costs to staff without a prior agreement from the tax authorities is perfectly legal. This is, however, not without risk. Whenever the tax authorities or the NSSO successfully dispute the lump sum reimbursement of costs, they are in position to partly or entirely requalify the cost reimbursement as a secret commission, leading to an additional tax and social security burden.
A prior agreement with the tax authorities could relieve you from this uncertainty.