Enterprise journey allowances within the Netherlands

Whereas the reimbursement of journey bills just isn’t legally required within the Netherlands, most Dutch organizations will benefit from tax-free mileage allowances to reimburse their workers’ journey prices. 

Companies may even totally refund their staff’ commute prices in sure instances. No matter is agreed upon, the allowances and necessities for refunding journey prices will at all times be outlined in firm insurance policies, employment contracts, or any collective labour agreements. 

What are the mileage allowance charges within the Netherlands for 2023?

The Dutch Tax Authority has lately up to date its permitted mileage charges. From January 1st, 2023, the steered tax-free fastened allowance within the Netherlands elevated to €0.21 for every kilometer traveled between an worker’s residence and their place of business and vice versa.

This 12 months is the primary time the Dutch authorities has elevated tax exemptions on enterprise miles since 2016. These figures don’t usually improve on an annual foundation. However to assist struggle the continuing rise in dwelling prices and automotive gasoline costs, there are plans for this allowance to rise once more within the 2024 tax 12 months to €0.22 per kilometer. 

Whereas this may increasingly seem easy at first look, totally different disclaimers apply relying in your worker’s technique of transportation. These guidelines will have an effect on the quantity they obtain and have implications for tax returns. 

How does mileage allowance work?

As we alluded to above, the enterprise mileage fee varies barely between various kinds of transport. 

Workers driving their private automotive

Staff driving their personal automotive between house and the workplace can obtain an allowance of €0.21 per kilometer. To be tax-free, this enterprise bills allowance can’t exceed the speed set by the Tax Authority (€0.21) and can’t be claimed for greater than 214 working days per calendar 12 months. 

Workers driving an organization van or automotive  

Many organizations permit employees to make use of an organization automobile for enterprise and personal functions. Whether or not touring on household journeys or to and from the grocery retailer, if workers’ personal use of the automotive or van exceeds 500 kilometers in a 12 months, then the non-public utilization is taken into account ‘wage of form’ and is taxable. 

Electrical Autos 

Whereas reimbursing workers’ electrical energy prices for recharging autos just isn’t permitted, staff driving electrical vehicles are entitled to a mileage allowance. The workplace might have the amenities to cost electrical autos eradicating the price to the worker, however as this can’t be assured, the automotive allowance is in place to cowl the prices of charging at house. 

Taxi, boat, or airplane  

Employees touring by taxis, boats, or airplanes also can obtain mileage allowance aid. Nonetheless, it must be famous that any bills paid over the €0.21 allowance shall be thought of wage and taxed accordingly. 

Touring by public transport 

Staff who come to the workplace by bus, ferry, or metro are additionally entitled to tax-free mileage allowances, however to be eligible, they have to meet the next standards. 

• Workers should journey greater than 10 kilometers every option to attain their place of business from house. 
• Employees should commute to the identical office no less than 1 day every week and for no less than 40 days every year. Every journey have to be accomplished inside 24 hours to depend in direction of their whole. 

Public transport bills are fully tax-free. So on prime of the €0.21 allowance, employers may determine to pay staff full journey bills once they commute to work by these means.   

Workers should present proof of their public transport prices to have these bills reimbursed. They might want to submit copies of their tickets or the digital journey checklist they will generate via their public transport card (OV-chipkaart) or present receipts of any month-to-month subscription prices. 

Whereas public transport receives higher tax exemption, as we are going to quickly see, the quantity that may be deducted will depend on the gap and frequency of journey.

What extra tax implications are there? 

Extra reimbursements 

Any bills a company pays workers above the €0.21 enterprise journey and commuting allowance are deemed a part of an worker’s wage and topic to their revenue tax fee. This contains any cash acquired for tolls, depreciation for put on and tear, or private automobile harm.  

Workers driving their very own autos 

To calculate the tax-free reimbursement for his or her enterprise journeys and commuting bills with personal transport, workers can use the next method;

• (variety of kilometers traveled a method 2) €0.21 * 214 working journey days / 12 months = your tax-free journey allowance per thirty days.

This calculation already considers trip days, nationwide holidays, and statutory sick days. Nonetheless, within the case of longer-term sickness, additional guidelines have to be taken into consideration. As well as, if staff are employed part-time, they have to pro-rata this equation accordingly. 

Journey allowances could be paid for as much as six weeks of absence, however all reimbursement should stop afterward. As talked about above, if the group reimburses enterprise journeys over the advisory €0.21 fee, the extra quantity will nonetheless be taxed as standard. 

Firm autos

Whereas companies can get tax aid on bills like MOTs and the VAT on firm autos, they have to account for any personal use of firm vehicles. Automotive mileage racked up for enterprise functions can nonetheless profit from the tax-free allowance however have to be recorded and evidenced precisely. 

Parking bills

The prices of parking an organization automotive could be labeled middleman and might subsequently be reimbursed tax-free. Nonetheless, this isn’t the case for workers utilizing their very own autos to drive to work. 

When employees declare the parking bills for his or her private automobile, they’re taxable and have to be included in any payroll. For that reason, the €0.21 allowance additionally covers any parking bills for staff driving their very own automotive to the workplace.  

Public transport customers 

The tax deductions for enterprise use mileage for workers who use public transport rely upon two elements. 

• The space traveled between the worker’s house and their work location. 
• The variety of days the worker travels into the workplace. 

The desk beneath can be utilized to assist decide the permitted mileage allowance cost on this occasion:   

* Over 90 kilometers, the journey allowance will increase to €0.26 per kilometer as much as a most of €2,354 whatever the variety of days traveled.

Supply: belastingdienst.nl