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Mobility budget: KPMG develops recommendations for a suitable tax and legal framework

Mobility budget

Being confronted with traffic jams and mobility issues on a daily basis has become the norm for most people. One of the solutions often mentioned is a mobility budget. Within the project ‘Intelligent Mobility Budget’ led by the ‘Vlaams Instituut voor Mobiliteit’ (VIM), KPMG has developed recommendations for a suitable tax and legal framework.

Frank Vancamp, Partner, Tax and Legal, Head of Automotive, Leasing and Mobility

Partner, Tax & Legal Advisers, Head of Automotive, Leasing and Mobility

KPMG in Belgium


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Mobility budget

The project results clearly demonstrate that the high degree of complexity of current legislation prevents employers from offering a mobility budget to their employees. We have therefore investigated how the tax and legal framework should be adjusted to offer a simpler system. To help with this we came up with the following recommendations:

  • Make a mobility budget available for all employees, including those who do not have a company car.
  • Allow use of the mobility budget by members of the employee’s household.
  • Include professional mileage in the mobility budget (with the possibility of exclusion, additional compensation provided that justification is available).
  • Limit the use of the mobility budget to means of transport.
  • Apply a ‘global’ (para-)fiscal regime to the mobility budget (no separate taxation rules per mode of transport).

The first simulations show that a mobility budget can lead to a win-win-win for the employer, the employee, and the government.

Don’t hesitate to contact us for more information or visit the press room.

© 2020 KPMG Central Services, a Belgian Economic Interest Grouping ("ESV/GIE") and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

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