FAQs
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The Federal mobility budget is a flexible system allowing employees to exchange their (right to a) company car for a budget. This budget can be spent on eco-friendly cars, sustainable transport options, and housing costs. Unused budget can be received as cash at the end of the year at a favorable tax rate. This offering tax benefits and promoting sustainable mobility.
In Belgium, there are 3 types of Mobility Budgets. The Legal, Flex and Business mobility budgets. Read all about their differences here.
Companies eligible for the mobility budget must meet specific criteria. Primarily, they need to have made one or more company cars available to their employees for an uninterrupted period of at least 36 months immediately before implementing the mobility budget. This eligibility ensures that the mobility budget can serve as an alternative to the company car system, promoting more sustainable transportation options.
Employees eligible for the Federal mobility budget must either have a company car or be eligible for one under their employer's (car) policy. The previous waiting period requirement has been removed, allowing immediate eligibility. However, the mobility budget can only available if the employer meets some requirements (See "Is my company eligible to offer the mobility budget?")
To calculate the allowed mobility budget, you need to determine the Total Cost of Ownership (TCO) of the company car. This including all related expenses such as purchase or lease price, fuel, insurance, maintenance, taxes, and depreciation. You can use the actual costs formula or the lump-sum formula. The chosen calculation method should be used consistent within your company. Mbrella can help you calculating the TCO.
Within the federal mobility budget, expenses include costs for eco-friendly cars, public transport, bicycles, and housing near work. These are covered under the budget's three pillars. In contrast, commuting allowances are direct reimbursements for travel between home and work, and follow standard sectoral policies and tax regulations.
Yes, employees can easily add commutes and mobility expenses through the Mbrella app.
Yes, you can reimburse commuting expenses without activating the federal mobility budget. Employers can provide standard commuting allowances for travel between home and work, covering public transport costs, car expenses, or cycling allowances. These reimbursements are separate from the mobility budget and can be offered directly according to sectoral policies and Belgian tax regulations.
To correctly calculate the Total Cost of Ownership (TCO) for the Belgian mobility budget, include all costs related to the company car such as purchase or lease price, fuel, insurance, maintenance, taxes, and depreciation. This calculation can use actual costs or a lump-sum formula, ensuring all relevant expenses are considered over a four-year reference period.
Employees can spend the federal mobility budget on various options. These include eco-friendly cars, sustainable transport like bicycles and public transport, and housing costs within a certain distance from work, or are working from home more than half of the time. Additionally, any remaining budget can be received in cash at a favorable tax rate, ensuring flexibility and tax efficiency. Read more here: https://app.mbrella.io/explore-hub
