Whereas the reimbursement of journey bills will not be legally required within the Netherlands, most Dutch organizations will reap the benefits of tax-free mileage allowances to reimburse their workers’ journey prices.
Companies would possibly even absolutely refund their staff’ commute prices in sure instances. No matter is agreed upon, the allowances and necessities for refunding journey prices will all the time 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 permitted mileage charges. From January 1st, 2023, the urged tax-free fastened 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 improve on an annual foundation. However to assist combat 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.
Whereas this will seem simple 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.
Staff driving their private automotive
Employees 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 not 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.
Staff driving an organization van or automotive
Many organizations permit workers 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.
Whereas reimbursing workers’ electrical energy prices for recharging autos will not be permitted, staff driving electrical automobiles are entitled to a mileage allowance. The workplace might have the services to cost electrical autos eradicating the associated 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
Employees touring by taxis, boats, or airplanes can even obtain mileage allowance aid. Nonetheless, it must be famous that any bills paid over the €0.21 allowance will probably be thought of wage and taxed accordingly.
Touring by public transport
Employees who come to the workplace by bus, ferry, or metro are additionally entitled to tax-free mileage allowances, however to be eligible, they need to meet the next standards.
- Staff should journey greater than 10 kilometers every method to attain their administrative center from house.
- Employees should commute to the identical office no less than 1 day per week and for no less than 40 days annually. Every journey have to be accomplished inside 24 hours to rely in direction of their complete.
Public transport bills are fully tax-free. So on high of the €0.21 allowance, employers can also determine to pay staff full journey bills once they commute to work by these means.
Staff 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 their public transport card (OV-chipkaart) or present receipts of any month-to-month subscription prices.
Whereas public transport receives better tax exemption, as we’ll quickly see, the quantity that may be deducted depends upon the space and frequency of journey.
What extra tax implications are there?
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 earnings tax fee. This consists of any cash obtained for tolls, depreciation for put on and tear, or private automobile injury.
Staff 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. Nevertheless, within the case of longer-term sickness, additional guidelines should be taken into consideration. As well as, if staff are employed part-time, they need to pro-rata this equation accordingly.
Journey 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 fee, the extra quantity will nonetheless be taxed as typical.
Whereas companies can get tax aid on bills like MOTs and the VAT on firm autos, they need to account for any personal use of firm automobiles. Automotive mileage racked up for enterprise functions can nonetheless profit from the tax-free allowance however have to be recorded and evidenced precisely.
The prices of parking an organization automotive will be labeled middleman and may due to this fact be reimbursed tax-free. Nevertheless, this isn’t the case for workers utilizing their very own autos to drive to work.
When workers 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:
|Distance every approach
|When touring 4 days or extra every week
|When touring 3 days or extra every week
|When touring 2 days or extra every week
|When touring 1 day or extra every week
|0 km to 10 km
|10 km to fifteen km
|15 km to twenty km
|20 km to 30 km
|30 km to 40 km
|40 km to 50 km
|50 km to 60 km
|60 km to 70 km
|70 km to 80 km
|80 km to 90 km
|Over 90 km
* 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.