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An employee enquired whether the difference between a meal allowance received and the actual restaurant bill was subject to Income Tax. The Directorate General for Taxes (DGT) ruled that, provided quantitative limits are respected, the entire allowance is exempt without the need to prove the exact amount spent.
This ruling provides legal certainty for employees and employers, confirming that meal allowances remain tax-exempt as long as they fall within statutory limits, regardless of whether the actual expenditure is lower than the allowance received.
The tax team reviews your specific situation.
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