Tax benefit

Both passenger and driver save money with Carpool! Carpoolers not only share in driving costs, but they can also benefit from a tax incentive. And that's what more and more Belgians do: In 2014, more than 15 000 people managed to exempt 8 million euro from tax in total.

If your company officially organizes carpooling, you can even exempt your full commuting allowance, even if you don't carpool every day!

General principles

Your taxes are calculated based on the income you earn during the tax year. For many, the most important income is the professional income. This includes for example wages, but also other remuneration, such as commuting allowance.

The costs made for doing your job, for example travel costs, can be deducted from your taxable income under certain conditions. You don't have to pay taxes on this amount. The government offers you two different options:

1. Based on your gross wage, the government calculates a lump sum that will be deducted from your taxable income. In this system you can obtain additional exemptions, for example for carpoolers. Carpoolers can receive a tax incentive if the carpooling is organized by their company and if an agreement between the employee and the employer exists.
2. You can also prove your professional costs. If these are higher than the lump sum, they will be deducted from your taxable income.

Attention: The exemptions you get from the 2 options are not combinable! On your tax form you can make the choice. So you have to calculate for yourself which option is most advantageous, which is mostly the first option. Depending on your choice, the rules to enjoy your tax advantage as a carpooler are different.

As it isn’t easy to manage the tax regulation, Mpact has developed a manual. However, it is only available in French and Dutch.

If you ‘d like to have more specific information to take advantage of these tax benefits or to introduce the system in your organization, please contact the Mpact experts’ team.

carpool@mpact.be
+32 2 227 93 01

Additional questions
 

 What if I'm traveling with someone from another company?

To benefit from a tax incentive, carpool partners do not need to be from the same company. It is possible that your carpool partner is simply your husband or wife. If the carpooling is organized by the company, then both partners can benefit from the tax incentive.

 Will the fee to the driver be taxed?

Usually the passenger pays a fee to the driver to share in the cost. This compensation is determined in mutual agreement between driver and passenger, as long as the trip is not profitable. In no case the fee will not be taxed. Click here for more info.

 I didn't carpooling all year. Can I still benefit from the tax advantage?

Yes! If you choose the first option, you can calculate the exemption based on the period you have carpooled. So if you carpool only a few days a week, you can still benefit from the tax advantage.