Tax-free travel allowance reduced to €0.25
The targeted exemption for travel expenses will be increased with retroactive effect from 1 January 2026, from €0.23 to €0.25. Following this increase, the flat-rate allowance for deductible travel expenses for self-employed individuals subject to income tax and those receiving income from a business, as well as the flat-rate allowance for travel expenses relating to specific healthcare costs when visiting the sick, weekend expenses for disabled people, and the flat-rate allowance for the charitable donation deduction in situations where a volunteer waives their travel allowance, will also be increased from €0.23 to €0.25 per kilometre.
Abolition of the exemption for own products under the WKR
It is proposed that the targeted exemption for products specific to a particular sector be abolished. This exemption has been in force since 2015. Since then, employers have been able to offer a discount of up to 20%, but not exceeding €500 per employee per calendar year, on products from their own company. Examples include staff discounts on groceries, clothing, electronics, family subscriptions, airline tickets, mortgage advice or insurance premiums. From 2027 onwards, employers will still be able to offer staff discounts, but they will then have to charge these discounts to the ‘free space’ under the work-related expenses scheme. It will no longer be necessary to keep track of the amount of discount given per employee.