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Benefits in kind & the Work Expenses Regulation in the Netherlands – what will change as of 2023?

Annually, some important changes take effect as to what employers may and may not reimburse or provide to their employees in terms of tax efficiency. In the Netherlands, these rather strict tax rules are set out in the Work Expenses Regulations (Werkkostenregeling or WKR) and relate to reimbursements (in cash) or benefits (in kind). 

As of 1 January 2023, some important changes were implemented in the WKR scheme:

  • The so-called Free Budget will increase once from 1.7% to 3% over a taxable annual salary of € 400,000
    This untaxed budget amounted to 1.7% in 2022 over a taxable annual salary of €400,000 and 1.18% over the excess of all employees subject to income tax in the Netherlands. As of 1 January 2023, the percentage of 1.7% will be increased once to 3% to give employers the opportunity to compensate their employees for the increased energy costs:
    • 3% over a taxable annual salary of € 400,000 and 1.18% over the excess of all employees subject to income tax in the Netherlands.
  • Employers may provide a tax-free reimbursement for home office expenses of € 2,15 per day worked from home

    Since 1 January 2022, you may grant the employee an untaxed allowance for home office expenses. A specific exemption of € 2.15 per day worked from home applies (in 2022 this amount was € 2. This allowance may not coincide with the commuting allowance. However, if you work from home, go to a customer and after a customer visit you go back home to work, then you may reimburse the € 2.15 for that day together with the € 0.21 per km driven to the customer and back home. As of 2023, the maximum amount of tax-free travel allowance has been increased from € 0.19 to € 0.21.

    Read the full article with calculation examples

  • The option to provide or reimburse occupational health and safety features with tax efficiency will be restricted.

    By offering health and safety features, employers can implement their organisation’s health & safety policy.
    Through a regulation of 28 December 2021 issued by the Finance Secretary for Finance, the specific exemption for such occupational health and safety provisions will be restricted with immediate effect. Only provisions that are directly related to the obligations of the employer under the Working Conditions Act still fall under the specific exemption.
    Read the full article

Do you want to know more about benefits in kind in the Netherlands?

If you would like to know more about the principles of the Work Expenses Regulations, please read this brief summary.
Principles of benefits in kind & the Work Expenses Regulations

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Since 1972, Interfisc has offered international HR & Payroll solutions in the Netherlands, Belgium, Germany, France, the United Kingdom, and Italy. We do this from our offices in the Netherlands and Belgium, and with an international team of around 45 committed and caring employees. 

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