Enterprise journey allowances within the Netherlands
Whereas the reimbursement of journey bills isn’t legally required within the Netherlands, most Dutch organizations will make the most of tax-free mileage allowances to reimburse their workers’ journey prices.
Companies would possibly even totally refund their staff’ commute prices in sure circumstances. 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 just lately 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 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 continued rise in residing prices and automobile 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 will 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 charge varies barely between several types of transport.
Workers driving their private automobile
Staff driving their personal automobile between dwelling 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.
Workers driving an organization van or automobile
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 automobile or van exceeds 500 kilometers in a 12 months, then the private utilization is taken into account ‘wage of sort’ and is taxable.
Electrical Automobiles
Whereas reimbursing workers’ electrical energy prices for recharging autos isn’t permitted, staff driving electrical vehicles 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 automobile allowance is in place to cowl the prices of charging at dwelling.
Taxi, boat, or airplane
Workers touring by taxis, boats, or airplanes also can obtain mileage allowance reduction. Nonetheless, it needs to be famous that any bills paid over the €0.21 allowance will probably 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 need to meet the next standards.
- Workers should journey greater than 10 kilometers every approach to attain their place of business from dwelling.
- Workers should commute to the identical office at the very least 1 day every week and for at the very least 40 days annually. Every journey have to be accomplished inside 24 hours to rely in the direction of their whole.
Public transport bills are utterly tax-free. So on high of the €0.21 allowance, employers might also resolve to pay staff full journey bills after 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 listing they will generate by way of their public transport card (OV-chipkaart) or present receipts of any month-to-month subscription prices.
Whereas public transport receives larger tax exemption, as we are going to quickly see, the quantity that may be deducted depends upon the space and frequency of journey.
What further tax implications are there?
Further 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 earnings tax charge. This contains any cash obtained for tolls, depreciation for put on and tear, or private automobile injury.
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 components;
- (variety of kilometers traveled a technique 2) €0.21 * 214 working journey days / 12 months = your tax-free journey allowance per 30 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 need 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 charge, the extra quantity will nonetheless be taxed as typical.
Firm autos
Whereas companies can get tax reduction on bills like MOTs and the VAT on firm autos, they need 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 automobile could be labeled middleman and may due to this fact be reimbursed tax-free. Nonetheless, 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. Because of this, the €0.21 allowance additionally covers any parking bills for staff driving their very own automobile to the workplace.
Public transport customers
The tax deductions for enterprise use mileage for workers who use public transport depend upon two components.
- The space traveled between the worker’s dwelling 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:
Distance every means | 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 | €0 | €0 | €0 | €0 |
10 km to fifteen km | €509 | €382 | €255 | €128 |
15 km to twenty km | €676 | €507 | €338 | €169 |
20 km to 30 km | €1,126 | €845 | €563 | €282 |
30 km to 40 km | €1,396 | €1,047 | €698 | €349 |
40 km to 50 km | €1,819 | €1,365 | €910 | €455 |
50 km to 60 km | €2,024 | €1,518 | €1,012 | €506 |
60 km to 70 km | €2,244 | €1,683 | €1,122 | €561 |
70 km to 80 km | €2,322 | €1,742 | US€1,161 | US€581 |
80 km to 90 km | €2,354 | €1,766 | €1,177 | €589 |
Over 90 km | €2,354 | * | * | * |
* 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