expanded reporting obligations: dotting the i's

Tax & Legal
19 January 2023

by Elien Verbrugge

Expanded reporting obligations: dotting the i's

Starting in the 2022 fiscal year, there will be a wider set of reporting obligations, with the total amount for all types of expense allowances always having to be declared on your tax form. We would also like to refer you to our previous articles on this topic from 2 February 2022, 10 June 2022 and 9 August 2022. Forms 281.10 and 281.20 for the 2022 fiscal year are due no later than 28 February 2023. As such, here we have dotted the i's and cross the t's on reimbursements of costs proper to the employer.

Expanded reporting obligations: dotting the i's

Individual forms 281.10 and 281.20 make the following distinction, in terms of costs proper to the employer:

  • Flat-rate allowances consistent with serious norms;
  • Flat-rate allowances not consistent with serious norms;
  • Allowances based on supporting documents.

Circular 2022/C/62 of 29 June 2022 stipulates that, as far as the first category is concerned, this would include, for example:

  • The flat-rate allowances of federal civil service employees, which are considered a serious norm in the private sector for flat-rate non-taxable reimbursement of the costs proper to the employer (provided certain conditions are met), such as mileage allowances for business travel and subsistence allowances;
  • The flat-rate allowance for working from home as referred to in Circular 2021/C/20 on employer interventions for working from home;
  • The flat-rate reimbursement of costs subject to an advance decision of the Office for Advance Tax Rulings;
  • The flat-rate reimbursement of costs the amount of which has been determined according to serious norms resulting from repeated observations and sampling.

We expect checks to be carried out following the broader reporting requirements. It is possible that fees not in line with serious norms will be reviewed with added scrutiny.

We therefore recommend that you keep supporting documents of the expenses for which flat-rate expense allowances are being paid. In the event of an audit, you will be able to submit these documents as evidence. Amounts reimbursed as costs proper to the employer should also be reported on the individual account, as well as the monthly pay slip.

Got any questions? If you do, be sure to get in touch with your case manager.