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Netherlands To Improve Employee Allowance Scheme

Tuesday, February 12, 2019

The Dutch Ministry of Finance announced on February 1, 2019, that the work-related costs scheme will be improved from 2020.

Under the scheme, employers can reimburse certain employee expenses up to 1.2 percent of total taxable wages free from payroll tax. From 2020, this percentage will rise to 1.7 percent for total wages up to EUR400,000 (USD458,000). The allowance for wages above the EUR400,000 threshold will remain at 1.2 percent.

Examples of costs covered by the scheme include travel, meals, convention tickets, study and training fees, laptops, tablets, mobile phones and tools. However, in the case of tablets, mobile phones, laptops and tools, these items must be essential for the employee to carry out their work.

The measure is intended to benefit small and medium-sized companies in particular and will apply from January 1, 2020.