With the work-related costs scheme (werkkostenregeling, WKR) it is possible for employers to give allowances to their employees without tax liability. There is a maximum amount you can spend without paying taxes, which is called the discretionary scope (vrije ruimte). The discretionary scope is a percentage of the total wage costs. You can find the current percentages here.
If the allowances exceed the discretionary scope, you will have to pay a final levy (eindheffing) over the part of the allowances that exceed the discretionary scope. This is the current final levy percentage.
Be aware of the efficiency limit (doelmatigheidsgrens) for what you can give per employee per year, which you can find here. It is not obligated to use all the discretionary scope. However, you cannot carry over any remaining discretionary scope to the next year.
Where can you find the amount of discretionary scope you have left?
Every month, you will receive a work-related costs scheme overview in Personeel en Salaris Online:
You can find this overview in the dashlet "Salary document viewer". If you want this information to be up to date, it is wise to inform us monthly about the used discretionary scope via Personeel en Salaris Online.
What can you use the discretionary scope for?
Some allowances or benefits are exempt from taxes. There is no need to use the discretionary scope for those allowances or benefits. You can use the discretionary scope for cases that are not exempt from taxes. You can think of:
- Christmas gifts and other small gifts (not the fruit basket in case of illness)
- Parking, ferry and toll fees for a private car (with the exception of a company car)
- Company fitness (not in the workplace)
- Contribution from staff associations or trade unions
- Bicycle (plan), electric bicycle, scooter, et cetera
- Staff parties, staff trips and so on
- Travel allowances, declarations, for trips with own transport above the maximum tax-free travel allowance, if these are not taxed at the employee
- Interest benefit of loans granted to staff (not being mortgage loans for the owner-occupied home)
- Workspace at the employee's home
- The costs for the employee at a non-business dinner