Income tax - Business expenses: lump sum or actual expenses (deduction)

Verified 07 April 2022 - Legal and Administrative Information Directorate (Prime Minister)

Your salary is subject to income tax after deduction of professional expenses (transportation expenses from home to work, clothing specific to the job being performed, etc.). You have a choice between the standard deduction of 10% and deducting your business expenses for their actual amount.

The standard deduction 10% is automatically calculated on your salary to account for current work expenses related to your job.

The main current business expenses are:

Travel from home to work
Work-site catering costs
Documentation and updating of professional knowledge

The deduction shall be at least €448 for each member of the tax household.

Its maximum is €12,829 for each member of the household.

If you choose the lump sum deduction, you have no steps to take. Administration automatically applies lump sum deduction of 10% on your salaries.

The 2022 2021 income tax return commenced on April 7, 2022.

The deadline varies depending on whether you file your return on paper or online.

Deadline to file your tax return online
Department	Reporting deadline
1 to 19	Tuesday 24 May 2022 at 23:59
20 to 54 (including 2A and 2B)	Tuesday 31 May 2022 at 23:59
55 to 974/976	Wednesday 8 June 2022 at 11.59pm
Non-residents	Tuesday 24 May 2022 at 23:59

2022 Online 2021 Income Statement

The tax return must be filed before Thursday 19 May 2022 at 23:59, including for foreigner residents.

If you believe that the 10% does not cover your expenses, you can choose to deduct your business expenses for their actual amount.

The deduction of actual expenses applies to all wage income.

You cannot choose the 10% for part of your wages and the deduction of actual expenses, for the other.

However, each member of tax centre may choose the most favourable regime.

Your expenses must meet the following conditions:

Serve your business
To be paid in 2021
Be justified (you must be able to provide documents attesting to the reality and amount of the charges)

The main deductible expenses are:

Transportation costs to the workplace
Meal
Business Travel
Training costs
Premises and professional equipment

To calculate your mileage charge, you can use this simulator:

Actual: calculate your mileage

FYI

for electric vehicles, the amount of travel expenses shall be increased by 20 %.

If you choose to deduct actual expenses, you must:

Enter the amount of business expenses you claim
Detail your actual costs (specify their nature and amount) in an attached note
If necessary, add to your taxable remuneration the allowances your employer paid you for professional expenses

You must keep supporting documents (invoices, restaurant notes, etc.) for 3 years.

FYI

in case of carpooling on your commute, only the amount of the cost that remains to be paid once the share is made can be deducted from the income.

The 2022 2021 income tax return commenced on April 7, 2022.

The deadline varies depending on whether you file your return on paper or online.

Deadline to file your tax return online
Department	Reporting deadline
1 to 19	Tuesday 24 May 2022 at 23:59
20 to 54 (including 2A and 2B)	Tuesday 31 May 2022 at 23:59
55 to 974/976	Wednesday 8 June 2022 at 11.59pm
Non-residents	Tuesday 24 May 2022 at 23:59

2022 Online 2021 Income Statement

The tax return must be filed before Thursday 19 May 2022 at 23:59, including for foreigner residents.

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