Breaking news: travelling abroad - new administrative instructions

Read also: Publication of new limit amounts for flat-rate allowances for business trips abroad (article in French)

This circular pertains in particular to the change concerning breakfast, which is no longer included in the flat-rate allowance but is included in hotel expenses.

In addition, the circular from the tax authorities differs on two points from the Office National de Securité Sociale  (ONSS) [National Social Security Office]  instructions on the subject:

• The first is that the circular from the tax authorities provides for a reorganisation of the daily flat-rate subsistence allowance, namely an increase in the employer's contribution towards out-of-pocket expenses of up to 20% (instead of 5% previously). Breakfast is now included in the accommodation allowance when the employer reimburses or covers accommodation costs. The ONSS instructions no longer refer explicitly to the contribution towards out-of-pocket expenses, whereas they did previously.
  
  In our opinion, this change in the ONSS instructions will have little or no impact in practice, as the daily flat-rate accommodation allowance will remain the same if the employer wishes to avail itself of the possibility of covering all out-of-pocket expenses now authorised by the Ministerial Decree, thereby maintaining the allowance at its former level.
   
• A second difference is that the FPS Finance circular only deals with the flat-rate per diem and, unlike the ONSS instructions, does not give limit amounts for the accommodation allowance. 
  
  The ONSS instructions stipulate that the accommodation allowance is paid "on the basis of supporting documents up to the maximum established for the country concerned" by the FPS Foreign Affairs. They do not officially state how social security will be treated if the maximum amount established for the country concerned is exceeded, but we do know that the ONSS would consider a flat-rate accommodation allowance without supporting documents to be a salary subject to social security contributions. 
  
  It should be remembered that Article 4 of the Ministerial Decree of 10 January 2023, on which the ONSS bases the amount of the accommodation, confirms that the maximum amounts established for each country may be exceeded. Article 4 provides as follows: 
  • « §2. The maximum accommodation allowance is paid on the basis of actual costs per night, on presentation of supporting documents and up to the maximums established per country and set out in Annex 1.
    
    By way of derogation from paragraph 1, higher amounts may be authorised, upon reasoned request."

We can only regret that there are still differences between the ONSS system and the tax system, even though we have long been calling for the harmonisation of taxation and ONSS treatment of expense reimbursements. Agoria will be raising this issue with the ONSS.