Whereas the reimbursement of journey bills isn’t legally required within the Netherlands, most Dutch organizations will benefit from tax-free mileage allowances to reimburse their workers’ journey prices.
Companies would possibly even absolutely refund their employees’ commute prices in sure circumstances. 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 just 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 job and vice versa.
This yr is the primary time the Dutch authorities has elevated tax exemptions on enterprise miles since 2016. These figures don’t sometimes improve on an annual foundation. However to assist battle the continuing rise in residing prices and automobile gasoline costs, there are plans for this allowance to rise once more within the 2024 tax yr 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 price varies barely between various kinds of transport.
Workers driving their private automobile
Staff driving their personal automobile between residence 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 yr.
Workers driving an organization van or automobile
Many organizations permit employees to make use of an organization car 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 yr, then the private utilization is taken into account ‘wage of variety’ and is taxable.
Whereas reimbursing workers’ electrical energy prices for recharging automobiles isn’t permitted, employees driving electrical automobiles are entitled to a mileage allowance. The workplace could have the services to cost electrical automobiles eradicating the fee to the worker, however as this can’t be assured, the automobile allowance is in place to cowl the prices of charging at residence.
Taxi, boat, or airplane
Workers touring by taxis, boats, or airplanes may obtain mileage allowance aid. Nonetheless, it needs to be famous that any bills paid over the €0.21 allowance will likely be thought-about 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 job from residence.
- Workers should commute to the identical office a minimum of 1 day every week and for a minimum of 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 prime of the €0.21 allowance, employers might also resolve to pay employees 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 record they’ll generate by way of 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 will depend on 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 price. This consists of any cash acquired for tolls, depreciation for put on and tear, or private car injury.
Workers driving their very own automobiles
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 method 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 must be taken under consideration. As well as, if employees are employed part-time, they have to pro-rata this equation accordingly.
Journey allowances may 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 ordinary.
Whereas companies can get tax aid on bills like MOTs and the VAT on firm automobiles, they have to account for any personal use of firm automobiles. Automobile 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 automobile may 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 automobiles to drive to work.
When employees declare the parking bills for his or her private car, they’re taxable and have to be included in any payroll. Because of this, the €0.21 allowance additionally covers any parking bills for employees driving their very own automobile to the workplace.
Public transport customers
The tax deductions for enterprise use mileage for workers who use public transport rely on two components.
- The gap traveled between the worker’s residence 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 fee 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.