The allowances and benefits in kind assigned to the free space.When applying the Work-related costs scheme amongst other things the following must be recorded: For that the employer should treat the expenses as taxed wage of the applicable employee (and hence keep it out of aforementioned scheme for the Work-related costs scheme).Īdministrative obligations Work-related costs scheme The 80% levy for allowances exceeding the aforementioned free space of the Work-related costs scheme can be prevented. If an allowance to an employee does not fit in the free space of the Work-related costs scheme or the exceptions (i.e., the assigned exemptions or nil valuations) then it will be treated as taxable wage. provisions that stay at the working space, e.g.provisions in the working space at home (under conditions).consumptions on the workplace that are not part of a meal, for instance coffee.provisions on the working place, like a desk.These so-called nil valuations (“nihilwaarderingen”) are for instance: business related lunches and meals during overtimeĪllowances in kind provided on the working place can also be provided tax-free.expenses of stay elsewhere for business purposes.what is obtained under the 30% ruling or what is obtained as reimbursement for actual extraterritorial costs if the 30% ruling is not available.for business trips max 19 cent per km or the actual travel expenses.These are assigned exemptions (“gerichte vrijstellingen”), for instance:
Some allowances can be provided tax-free without using aforementioned free space of the Work-related costs scheme. The Dutch tax authorities assume that the allowance is usual if the amount is no more than EUR 2,400 per person annually. The latter can be determined by looking at other employees or comparable functions of the same but also other employer. Amounts exceeding this free space will be taxed at a staggering rate of 80%.Īn important condition is that the allowance is less than 30% deviating from what is usual. In 2021 the total allowances under this scheme cannot be more than 3% of the first EUR 400,000 of the wage sum and 1.18% of the remainder. For instance presents with Christmas, staff outings but also bonuses. This scheme can be used for pretty much anything. Under the Work-related costs scheme (“werkkostenregeling”) the employer can reimburse work related costs tax-free to employees. Work-related costs scheme (“Werkkostenregeling”)
#CENTS PER KM REIMBURSEMENT FROM EMPLOYER HOW TO#
How to report bank account for Dutch tax refunds.Legal Forms for doing Business in the Netherlands.Branch Setup Support in the Netherlands.If the commuting distance is more than 90 kilometers, the deduction equals 24 cents per kilometer multiplied with the travel kilometers and days on which the employee travels, but no more than € 2,214 per year in 2022 (€ 2,1). If the employee travels 3, 2 or 1 day(s) per week, the deduction is respectively 75%, 50% or 25% of the above mentioned annual amounts if the commuting distance is less than 90 kilometers. The maximum annual deduction amounts to (EUR) - 2022 If the employee travels at least 4 days per week, the deduction for travel expenses/commuting can be calculated as follows (2022): With a travel distance per public transport of at least
The expenses must be reduced with travel cost reimbursements received from the employer. The travel must be done by public transport and evidenced by a so-called public transport statement (in Dutch: 'openbaarvervoerverklaring'). Traveling at least 40 days per year, qualifies as traveling once per week. For deduction itis required that the employee travels at least one day per week from the place of residence or regular place of stay to the place where the employment is exercised. The only expenses which can be deducted in the annual income tax return in Box 1 relating to income from current employment, are qualifying expenses for commuting per public transport.
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