Deductible Costs and Disallowed Expenses in Belgium

As an entrepreneur, you incur daily costs to keep your business running. But which of those expenses are actually deductible in your accounts and therefore give you a tax advantage? In this article, we explain it clearly.

What does “deductible expenses” mean?

Deductible expenses are costs you incur in the interest of your professional activity. They reduce your taxable profit, which ultimately means you pay less tax.

Important: the tax authorities always assess whether an expense is necessary for your business and whether you can substantiate it with supporting documents (invoice, receipt, contract, etc.).

Note: not everything is (fully) deductible

Some expenses can only be deducted partially. Think of car costs (usually 50–100% depending on CO₂ emissions) or restaurant expenses (max. 69%). Purely private expenses are never deductible.

Examples of commonly deductible expenses

Category	Examples	Deductibility
Office & equipment	Laptop, printer, desk, software	100%
Transport	Car (fuel, maintenance, leasing), train, bicycle	50% – 100%
Phone & internet	Mobile subscription, internet at home/office	75% – 100% (depending on professional use)
Meals & representation	Business lunch, dinner with client, corporate gifts	50% (gifts limited)
Training & upskilling	Courses, seminars, professional literature	100%
Staff & benefits	Wages, social security, meal vouchers, eco vouchers	100%
Housing & utilities	Office rent, part of home, electricity, water	Pro rata (depending on professional use)
Bank & insurance	Bank charges, professional liability insurance	100%
Marketing & advertising	Website, ads, social media campaigns	100%
Fees & experts	Accountants, lawyers, consultants, other experts	100%

Disallowed Expenses (“verworpen uitgaven”)

Besides partially deductible costs, there are also fully disallowed expenses. These are costs you can book in your accounts (they appear in the income statement) but which are not tax-deductible. They increase your taxable profit, meaning you effectively pay tax on them.

Disallowed expense	Disallowed %
Non-deductible taxes	100%*
Regional taxes, levies and fees (Surcharges collected by OVAM are 100% deductible)	100%
Fines and forfeitures	100%*
Non-deductible pensions, lump sums, employer contributions and premiums	100%
Non-deductible car costs, capital losses on vehicles	Depending on CO₂ emissions*
Benefit in kind – company car	17%/40% BIK*
Non-deductible reception costs and corporate gifts	50%*
Non-deductible restaurant expenses	31%*
Costs for non-specific work clothing	100%
Excessive interest	100%*
Interest relating to a portion of certain loans	100%
Abnormal or benevolent advantages	100%
Social benefits	100%*
Meal, sports, culture and eco vouchers when qualified as an excessive social benefit	100%
Donations (liberalities)	100%
Impairments and capital losses on shares	100%
Reversal of previously granted exemptions	100%
Employee participation plans	100%
Compensation for missing coupon	100%
Tax shelter costs for accredited audiovisual works	100%
Regional premiums and capital/interest subsidies	100%
Non-deductible payments to certain states	100%
Compensation paid under a group contribution agreement	0%
Unsubstantiated costs or benefits in kind included in an assessment established in the beneficiary’s name	100%

Key takeaways

Not everything is fully deductible. For example, restaurant expenses are limited to 69%, and car costs depend on the type of vehicle and its CO₂ emissions.
Private expenses are never deductible. Only the professional portion counts.
Accurate administration is crucial. Without an invoice or supporting document, you cannot deduct the cost.

Conclusion

Deductible expenses are an important way to lower your tax burden. By entering your expenses smartly and correctly, you keep more resources available to invest in your growth.

Unsure whether a particular expense is deductible? At AAF Consultants, we review your situation together and give clear advice so you can focus on running your business with peace of mind.