Many entrepreneurs and companies in the Netherlands pay for their employees' travel to work, as well as their travel for business purposes. Funds spent for these purposes are not taxed if the expenses do not exceed the established limit. Starting in 2024, the limit increases so employers can increase payments while saving on taxes.
In 2023, entrepreneurs could compensate the travel of their employees without paying tax within the range of 0,21 euros per kilometer. From 2024, the limit has been increased by 2 cents to 0,23 euros/kilometer. At first glance, the amount is small, but multiplying 2 cents by the number of employees and the kilometers they travel per year, you can see quite large amounts that can be exempt from taxes.
Only those employers whose employment contracts with employees specify the maximum amount of compensation will have to increase the amount of compensation for employee travel. If the specific amount of travel compensation is not specified in the contract, the entrepreneur can act at his own discretion.
The same amount of compensation - up to 23 euro cents per 1 kilometer - can also be provided to employees who commute to work by public transport. When providing travel passes, you will have to submit complex reports to ensure that they are not used for personal purposes.
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Publication Date: 24.11.2023
