With the costs of fuel at an all-time high, the Dutch tax authorities have announced the increase of the maximum tax-free Commuting allowance and the newly introduced Working from home allowance! What does this mean for you?
The maximum tax-free Commuting and Working From Home (WFH) allowances in the Netherlands for employees will increase as of January 1, 2023. Commuting allowance is expected to increase again in January 2024.
The new tax-free amounts will be as follows:
- Commuting allowance per 1 January 2023 – € 0.21 per kilometer
- Expected commuting allowance per 1 January 2024 – € 0.22 per kilometer
- WFH allowance per 1 January 2023 – € 2,15 per day
How does this affect your business? It is all in the language of your employment agreement or employee handbook:
- If you state that you reimburse commuting costs and WFH costs to the maximum tax-free amount allowed, then the amount needs to be adjusted to reflect the changes in 2023 (and 2024).
- If you state that you reimburse commuting costs and WFH costs at a fixed amount (such as € 0.19 per kilometer for commuting), then you are not obliged to adjust the amount for 2023 and 2024 although you are free to do so.
How can your Dutch organization adapt to this change in a way that honors both your employees and the company budget?
Contact our experienced External HR team or call us via +31 (0) 85 0187471 and we will support you to set you up for success!