Whereas the reimbursement of journey bills just 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 may even totally refund their employees’ 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 not too long ago up to date its permitted mileage charges. From January 1st, 2023, the instructed tax-free fastened 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 enhance on an annual foundation. However to assist struggle the continuing 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 simple 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 fee varies barely between various kinds of transport.
Staff driving their private automobile
Employees 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 12 months.
Staff driving an organization van or automobile
Many organizations enable employees 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 non-public utilization is taken into account ‘wage of form’ and is taxable.
Whereas reimbursing workers’ electrical energy prices for recharging autos just isn’t permitted, employees driving electrical automobiles are entitled to a mileage allowance. The workplace might have the amenities to cost electrical autos 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 can even obtain mileage allowance aid. Nonetheless, it needs to be famous that any bills paid over the €0.21 allowance can be thought-about 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 have to meet the next standards.
- Staff should journey greater than 10 kilometers every option to attain their place of business from residence.
- Workers should commute to the identical office not less than 1 day every week and for not less than 40 days annually. Every journey should be accomplished inside 24 hours to rely in direction of their whole.
Public transport bills are utterly tax-free. So on prime of the €0.21 allowance, employers may additionally determine to pay employees 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 higher tax exemption, as we are going to quickly see, the quantity that may be deducted relies on the gap and frequency of journey.
What further tax implications are there?
Any bills a corporation pays workers above the €0.21 enterprise journey and commuting allowance are deemed a part of an worker’s wage and topic to their revenue tax fee. This consists of any cash acquired 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 30 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 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 fee, the extra quantity will nonetheless be taxed as standard.
Whereas companies can get tax aid on bills like MOTs and the VAT on firm autos, they have 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 should be recorded and evidenced precisely.
The prices of parking an organization automobile may be labeled middleman and may subsequently be reimbursed tax-free. Nevertheless, this isn’t the case for workers utilizing their very own autos to drive to work.
When employees declare the parking bills for his or her private automobile, they’re taxable and should 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 space traveled between the worker’s residence and their work location.
- The variety of days the worker travels into the workplace.
The desk under can be utilized to assist decide the permitted 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.