Business journey allowances within the Netherlands

While the reimbursement of journey bills will not be legally required within the Netherlands, most Dutch organizations will benefit from tax-free mileage allowances to reimburse their staff’ journey prices. 

Businesses may even absolutely refund their staff’ commute prices in sure instances. Whatever 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 not too long ago up to date its accredited mileage charges. From January 1st, 2023, the prompt tax-free mounted allowance within the Netherlands elevated to €0.21 for every kilometer traveled between an worker’s residence and their administrative center 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 enhance on an annual foundation. But to assist battle the continuing rise in dwelling prices and automotive gas costs, there are plans for this allowance to rise once more within the 2024 tax 12 months to €0.22 per kilometer. 

While this may increasingly seem easy at first look, completely 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 price varies barely between several types of transport. 

Employees driving their private automotive

Workers driving their non-public 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. 

Employees driving an organization van or automotive  

Many organizations permit employees to make use of an organization automobile for enterprise and personal functions. Whether touring on household journeys or to and from the grocery retailer, if staff’ non-public use of the automotive or van exceeds 500 kilometers in a 12 months, then the non-public utilization is taken into account ‘wage of variety’ and is taxable. 

Electric Vehicles 

While reimbursing staff’ electrical energy prices for recharging autos will not be permitted, staff driving electrical vehicles are entitled to a mileage allowance. The workplace could have the amenities to cost electrical autos eradicating the fee 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  

Staff touring by taxis, boats, or airplanes may also obtain mileage allowance reduction. Still, it must be famous that any bills paid over the €0.21 allowance will probably be thought-about wage and taxed accordingly. 

Traveling by public transport 

Workers 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. 

• Employees should journey greater than 10 kilometers every option to attain their administrative center from house. 
• Staff should commute to the identical office not less than 1 day every week and for not less than 40 days every year. Each journey should be accomplished inside 24 hours to depend in direction of their complete. 

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.   

Employees 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 record they’ll generate by means of their public transport card (OV-chipkaart) or present receipts of any month-to-month subscription prices. 

While public transport receives higher tax exemption, as we’ll quickly see, the quantity that may be deducted relies on the space and frequency of journey.

What extra tax implications are there? 

Additional reimbursements 

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

Employees driving their very own autos 

To calculate the tax-free reimbursement for his or her enterprise journeys and commuting bills with non-public transport, staff can use the next components;

• (variety of kilometers traveled a technique 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. However, within the case of longer-term sickness, additional guidelines should be taken into consideration. In addition, if staff are employed part-time, they have to pro-rata this equation accordingly. 

Travel allowances will 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 price, the extra quantity will nonetheless be taxed as regular. 

Company autos

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

Parking bills

The prices of parking an organization automotive will be labeled middleman and may due to this fact be reimbursed tax-free. However, 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 should be included in any payroll. For this purpose, 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 distance 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 accredited 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.

Source: belastingdienst.nl