Do you use the work-related expenses scheme (WKR) to provide tax-free benefits to your employees? As of January 1, 2024, the temporarily increased tax-free budget will expire. Please take this into account to avoid unexpected high levies.
Why is the WKR beneficial?
As an employer, you can provide tax-free benefits to your employees within the WKR. If the total tax-free benefits you provide to your employees remains within the so-called tax-free budget, you do not have to pay tax (levy) on it.
End of temporary increase in tax free-budget
In 2023, the WKR's tax-free budget was temporarily set at 3 percent up to a fiscal wage of 400,000 euros. Per January 1, 2024, this temporary increase will expire, and the tax-free budget will be set at 1.92 percent for the first 400,000 euros of the fiscal wage. For the remaining part of the fiscal wage, the tax-free budget will remain at 1.18 percent. If you exceed this tax-free budget, you will owe an 80 percent levy as an employer.
What does the tax-free budget apply to?
You can designate benefits, such as gym memberships or travel expense reimbursements that exceed the tax-free amount of 0.23 euros per kilometer (effective from January 1, 2024), to the tax-free budget of the WKR.
Public transport tickets specifically exempted
Starting January 1, 2024, the private use of a public transport card or off-peak hours card that you reimburse, provide, or make available as an employer will be specifically exempted. You won't owe any tax as long as your employee uses the public transport card or off-peak hours card (in any capacity) for business trips, including commuting, and you can reasonably demonstrate that it is used for business purposes. You won't need to keep records of private and business use for this exemption anymore.
Want to ensure proper application of the WKR?
Do you want certainty about the correct application of the WKR?
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