The law discussed below has already been adopted by the Chamber but has not yet been published in the Moniteur belge.
Why this new limitation?
Through the law reforming personal income tax, the government aims to limit the use of flat-rate estimated benefits in kind as an alternative to salary. According to the new regulation, these benefits from the income year 2026 onwards may not exceed 20% of the total taxable remuneration of the employee or company manager.
This new threshold is intended to prevent remuneration packages from relying too much on tax-advantaged benefits in kind. The legislator wants the remuneration to consist mainly of salary.
Which benefits are included?
The new 20% threshold does not apply to all benefits in kind. Only benefits for which the tax legislation provides a flat-rate valuation method are counted for this measure. Benefits taxed based on their actual value are excluded.
Specifically, the following benefits are concerned:
- Company cars, the benefit of which is determined using the flat-rate formula that takes into account, among other things, the catalogue value and CO₂ emissions of the vehicle
Read more: "Company car - benefit in kind for tax purposes"
- Interest-free or low-interest loans, for which a flat-rate benefit is determined based on annually published reference rates
Read more: "Loan - Interest-free loan or loan with reduced interest rate - New from 1 January 2026"
- PC, internet connection and other IT equipment
- Free housing, including a single room, as well as the free provision of heating and electricity. Heating and electricity cannot be granted as a separate benefit but only in connection with a provided dwelling or room
- Social meals
- Free provision of domestic staff
- Certain stock options for which the taxable base is determined on a flat-rate basis
Read more "Warrants and stock options: the tax aspects"
When is a benefit in kind excessive?
An excessive allocation occurs when the flat-rate valued benefits in kind during a taxable period exceed 20% of the total taxable remuneration of the concerned employee or company manager. This 20% threshold is assessed separately for each recipient.
- For employees, the threshold is assessed based on the taxable remuneration stated on the tax form 281.10
- For company managers, this is based on the taxable remuneration stated on the tax form 281.20
The 20% threshold is assessed separately for employees on the one hand and company managers on the other. An excess for a company manager cannot be offset by a lower percentage of benefits in kind for employees, and vice versa.
What sanctions apply?
For excessive flat-rate benefits granted to employees, a separate levy of 7.5% applies, payable by the employer or the company.
For excessive flat-rate benefits granted to company managers, the company may lose the benefit of the reduced corporate tax rate.
How can Securex help?
Check in time whether the benefits in kind within your company do not exceed the new 20% threshold.
Does your accountant use the Securex Company Manager Tool? Then the new 20% threshold is automatically monitored. In case of an excess, they immediately receive a notification so that timely adjustments can be made.
Source
- Law of 9 July 2026 reforming personal income tax (this law has already been adopted by the Chamber but has not yet been published in the Moniteur belge).
