Dear Clients,
Dear Entrepreneurs,

Starting in 2025, there will be exciting changes to the mileage allowance, placing a stronger emphasis on environmental protection. The new Progressive Compensation Act introduces several tax adjustments that not only simplify professional travel across various modes of transport but also incentivize eco-friendly alternatives.

Here’s an overview of the key updates:

  • Standardized mileage allowance of €0.50 per kilometer for cars, motorcycles, and bicycles alike. No matter which vehicle you use, the rate is the same.
  • Additional allowance for carpooling: Those who form carpools can deduct an extra €0.15 per passenger. This reduces costs and emissions alike.
  • Extended mileage limit for bicycles: The annual mileage limit for professional cycling has been doubled to 3,000 kilometers, providing a significant incentive for sustainable mobility.
  • Mileage allowance for walking: Those who travel professionally on foot can now claim an allowance of €0.38 per kilometer starting from the first kilometer.
  • New “transport subsidy” for public transit: Employers can now provide tax-free subsidies to employees who use public transportation for business purposes.

These adjustments aim to encourage employees to choose eco-friendly options, thereby contributing to the reduction of CO₂ emissions.

If you have any further questions, please feel free to reach out to us via email. We’ll be happy to assist you.

Your 360° Business Planner Team