A comprehensive guide to corporate travel allowances in the Netherlands

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While the reimbursement of question expenses is not legally required successful the Netherlands, astir Dutch organizations volition instrumentality vantage of tax-free mileage allowances to reimburse their employees' question costs.

Businesses mightiness adjacent afloat refund their workers' commute costs successful definite cases. Whatever is agreed upon, the allowances and requirements for refunding question costs volition ever beryllium outlined successful institution policies, employment contracts, oregon immoderate corporate labour agreements.

What are the mileage allowance rates successful the Netherlands for 2023?

The Dutch Tax Authority has precocious updated its approved mileage rates. From January 1st, 2023, the suggested tax-free fixed allowance successful the Netherlands accrued to €0.21 for each kilometer traveled betwixt an employee's residence and their spot of enactment and vice versa.

This twelvemonth is the archetypal clip the Dutch authorities has accrued taxation exemptions connected concern miles since 2016. These figures bash not typically summation connected an yearly basis. But to assistance combat the ongoing emergence successful surviving costs and car substance prices, determination are plans for this allowance to emergence again successful the 2024 taxation twelvemonth to €0.22 per kilometer.

While this whitethorn look straightforward astatine archetypal glance, antithetic disclaimers use depending connected your employee's means of transportation. These rules volition impact the magnitude they person and person implications for taxation returns.

How does mileage allowance work?

As we alluded to above, the concern mileage complaint varies somewhat betwixt antithetic types of transport.

Employees driving their idiosyncratic car

Workers driving their backstage car betwixt location and the bureau tin person an allowance of €0.21 per kilometer. To beryllium tax-free, this concern expenses allowance cannot transcend the complaint acceptable by the Tax Authority (€0.21) and cannot beryllium claimed for much than 214 moving days per calendar year.

Employees driving a institution van oregon car

Many organizations let unit to usage a institution conveyance for concern and backstage purposes. Whether traveling connected household trips oregon to and from the market store, if employees' backstage usage of the car oregon van exceeds 500 kilometers successful a year, past the idiosyncratic usage is considered 'salary of kind' and is taxable.

Electric Vehicles

While reimbursing employees' energy costs for recharging vehicles is not permitted, workers driving electrical cars are entitled to a mileage allowance. The bureau whitethorn person the facilities to complaint electrical vehicles removing the outgo to the employee, but arsenic this cannot beryllium guaranteed, the car allowance is successful spot to screen the costs of charging astatine home.

Taxi, boat, oregon airplane

Staff traveling by taxis, boats, oregon airplanes tin besides person mileage allowance relief. Still, it should beryllium noted that immoderate expenses paid implicit the €0.21 allowance volition beryllium considered wage and taxed accordingly.

Traveling by nationalist transport

Workers who travel to the bureau by bus, ferry, oregon metro are besides entitled to tax-free mileage allowances, but to beryllium eligible, they indispensable conscionable the pursuing criteria.

Employees indispensable question much than 10 kilometers each mode to scope their spot of enactment from home.
Staff indispensable commute to the aforesaid workplace astatine slightest 1 time a week and for astatine slightest 40 days each year. Each travel indispensable beryllium completed wrong 24 hours to number towards their total.

Public transport expenses are wholly tax-free. So connected apical of the €0.21 allowance, employers whitethorn besides determine to wage workers afloat question expenses erstwhile they commute to enactment by these means.

Employees indispensable provide impervious of their nationalist transport costs to person these expenses reimbursed. They volition request to taxable copies of their tickets oregon the integer travel database they tin make done their nationalist transport paper (OV-chipkaart) oregon supply receipts of immoderate monthly subscription costs.

While nationalist transport receives greater taxation exemption, arsenic we volition soon see, the magnitude that tin beryllium deducted depends connected the region and frequence of travel.

What further taxation implications are there?

Additional reimbursements

Any expenses an enactment pays employees supra the €0.21 concern question and commuting allowance are deemed portion of an employee's wage and subject to their income taxation rate. This includes immoderate wealth received for tolls, depreciation for deterioration and tear, oregon idiosyncratic conveyance damage.

Employees driving their ain vehicles

To cipher the tax-free reimbursement for their concern trips and commuting expenses with backstage transport, employees tin usage the pursuing formula;

(number of kilometers traveled 1 mode 2) €0.21 * 214 moving question days / 12 months = your tax-free question allowance per month.

This calculation already considers abrogation days, nationalist holidays, and statutory sick days. However, successful the lawsuit of longer-term illness, further rules request to beryllium taken into account. In addition, if workers are employed part-time, they indispensable pro-rata this equation accordingly.

Travel allowances tin beryllium paid for up to six weeks of absence, but each reimbursement indispensable cease afterward. As mentioned above, if the enactment reimburses concern journeys implicit the advisory €0.21 rate, the further magnitude volition inactive beryllium taxed arsenic usual.

Company vehicles

While businesses tin get taxation alleviation connected expenses similar MOTs and the VAT connected institution vehicles, they indispensable relationship for immoderate backstage usage of institution cars. Car mileage racked up for concern purposes tin inactive payment from the tax-free allowance but indispensable beryllium recorded and evidenced accurately.

Parking expenses

The costs of parking a institution car tin beryllium labeled intermediary and tin truthful beryllium reimbursed tax-free. However, this is not the lawsuit for employees utilizing their ain vehicles to thrust to work.

When unit state the parking expenses for their idiosyncratic vehicle, they are taxable and indispensable beryllium included successful immoderate payroll. For this reason, the €0.21 allowance besides covers immoderate parking expenses for workers driving their ain car to the office.

Public transport users

The taxation deductions for concern usage mileage for employees who usage nationalist transport beryllium connected 2 factors.

The region traveled betwixt the employee's location and their enactment location.
The fig of days the worker travels into the office.

The array beneath tin beryllium utilized to assistance find the approved mileage allowance outgo successful this instance:

Distance each way	When traveling 4 days oregon much each week	When traveling 3 days oregon much each week	When traveling 2 days oregon much each week	When traveling 1 time oregon much each week
0 km to 10 km	€0	€0	€0	€0
10 km to 15 km	€509	€382	€255	€128
15 km to 20 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	*	*	*