Law on various provisions published that affect, among other things, car taxation, flexible pay, and luncheon vouchers.

Many other tax advantages are also being changed or removed.

A new law on various administrative provisions is changing the tax landscape in several areas. Many benefits are disappearing or being reformed, affecting car taxation, flexible pay, luncheon vouchers, expats, and dependents, among others. Analyse today which measures impact your organisation and adjust your policy accordingly.

This AI-generated translation may contain errors and should not be considerd legal advice. For accurate info, refer to the Dutch or French version or consult your Securex Legal Advisor.

A handy overview

This article discusses the following measures:

Changes to car taxation
Dependents: a uniform threshold for net subsistence income
Increased flexi-job ceiling, which will now be indexed
Increase in meal vouchers
Incoming taxpayers and researchers (expats)
Cancellation and phasing out of several tax measures
Assessment deadlines for income tax

Changes to car taxation

In 2026, car taxation will be strictly enforced again. The tax deductibility of petrol and diesel vehicles will continue to decrease, and new vehicles with combustion engines will no longer be deductible. Non-profit organisations will also be affected: car costs will now be taxable for them. Additionally, there will be significant changes for plug-in hybrids.

These adjustments build on the reform of 2021 aimed at promoting greener mobility and are now supplemented by the new law containing various provisions.

Would you like to find out what this evolution means for your organisation?

Dependents: a uniform threshold for net subsistence income

Starting from the income year 2025, the net subsistence income that children may have will be uniformly set for all children at 5,265 euros (12,000 euros after indexing). Previously, this maximum amount varied depending on the child's family situation.

Increased flexi-job ceiling, which will now be indexed

The law increases the tax maximum income for non-retired flexi-jobbers from the income year 2025 from 12,000 euros to 18,000 euros (indexed amounts).

This amount will now be adjusted annually according to the evolution of the index figure.

Increase in meal vouchers

The law states that meal vouchers will be exempted up to a contribution from the employer of € 8.91, bringing the total value of the meal voucher to a maximum of 10 euros.

Additionally, the tax deductibility has increased from 2 euros to 4 euros per voucher, but only if that maximum contribution is actually paid. If the contribution is lower (and thus the amount of the meal voucher is under 10 euros), the deduction per voucher remains limited to 2 euros. It is therefore an “all-or-nothing” system that encourages the increase. For employers, this means that a higher contribution not only benefits employees but also provides an additional tax advantage.

Incoming taxpayers and researchers (expats)

The regime for expats will be relaxed in the following ways:

The employer's specific costs will be increased from 30% to 35% of the gross annual salary
The maximum ceiling of 90,000 euros will be abolished
The minimum gross salary will decrease from 75,000 euros to 70,000 euros

Entry into force

The new rules will apply retroactively for wages that have been paid or awarded from January 1, 2025.

There is a transitional arrangement for employees who:

started employment between January 1, 2025, and 10 days after the publication of this law in Belgium
and whose salary did not meet the threshold of 75,000 euros (all other conditions are met)

They can still submit a request to apply the regime for incoming taxpayers. This must be done within 3 months, counting from the tenth day after the publication of this law in the Moniteur belge.

The application of the regime for expats will then apply retroactively from the date of employment, but never earlier than January 1, 2025.

Cancellation and phasing out of several tax measures

This concerns the following:

Cancellation of PC private plan from October 1, 2025
Cancellation of increased cost allowance for long-distance travel from the income year 2025
The exemption for additional personnel for SMEs will be phased out from the income year 2025
The exemption for social passive unit status can only be applied to salaries awarded up to and including September 30, 2025, along with a limitation of the exempt amount.
Cancellation of tax reduction for the acquisition of an electric vehicle from the income year 2025
Cancellation of tax reduction for household help from the income year 2025

Assessment deadlines for income tax

The existing six-year assessment period for semi-complex declarations and the ten-year assessment period for fraud and complex declarations will be removed. In their place, the following extended assessment periods will be introduced, in addition to the regular period of 3 years:

Three years: for a correct and timely declaration
Four years: for non- or late declarations or complex declarations
Seven years: for fraud (the previous ten-year period is reduced to seven years)

The six-year assessment period for semi-complex declarations and the ten-year period for complex declarations will be cancelled.

The new regulation will apply retroactively from assessment year 2023.

What does Securex do for you?

If you have questions about how these measures will impact your company or your HR policy, we are here to help. Contact your Securex Legal Advisor today via MyHR@securex.be.