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

Verified 18 August 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.

Flat Deduction

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.

Internet income tax return is required if your primary residence is equipped with internet access and you are able to file your return online.

The 2022 income reporting period has ended.

The 2023 return for 2022 income will be in April 2023.

Actual

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:

Please note

carpool expenses are deductible, upon proof.

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.

Internet income tax return is required if your primary residence is equipped with internet access and you are able to file your return online.

The 2022 income reporting period has ended.

The 2023 return for 2022 income will be in April 2023.

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