If you want to read more about travelling by private transport and if your parking expenses will be covered by you employer. Read ‘Working in The Netherlands: Travel expenses (part 1)‘.
The rules of tax liability in the Netherlands are changed at the beginning of 2017. As of January 1, 2017, there will only be two categories. The 4% for electric vehicles and the 22% for hydrogen- and all other cars. When you are about to choose a new lease vehicle you must remind yourself about these new rules. So, only fully electrical cars will receive an incentive through an additional tax liability of 4%.
If the employee is the owner of an electric car, the employer may reimburse a maximum of € 0,19 per kilometer. Reimbursements of electricity costs are not possible, so the € 0,19 per kilometer should cover all the costs.
But typically, electric cars are not owned by the employee but leased or owned by a company. Re-charging the car at the work location will probably not cost the employee anything. However, depending on the situation, this may not be the case if the car is charging at home.
Under public transport we mean transport by bus, ferry, train or subway. So, public transport is not any transportation by taxi, boat or aircraft. These examples of transport apply for a separate arrangement.
If you are traveling by public transport in The Netherlands, you may receive a maximum of € 0,19 per kilometer. And expenses made by the employee for (business) travel with public transport may be reimbursed tax-free. Your employer may also choose to pay the actual expenses. But if your employer wants to reimburse the actual costs, he/she must demonstrate that you travelled by public transport in The Netherlands. For that reason, you will need to save copies of the tickets. You can also create a list of trips and costs incurred with the public transport card (OV-chipkaart). And a copy of your monthly subscription will also do.
When you are driving a company car and you also use the car for private occasions the car is a benefit in kind. This is the case when the employee is driving more than 500 private kilometers on an annual basis.
Please note that if you have a foreign driving licence, there are some rules regarding the validity of your driving license and changing it to a Dutch driving license. Read in our blog ‘Using your foreign driving license in the Netherlands’ all you need to know about your foreign driving licence.
If you are traveling by taxi, boat or airplane, your employer may reimburse the actual expenses. For these types of transport the maximum tax-free allowance is € 0,19 per kilometer. Any additional compensation will be labelled and taxed as salary.
Would you like to know more about traveling in The Netherlands? Or not sure about your travel allowance as an employee? Don’t hesitate to contact us, send us an email at [email protected] and we’ll answer any questions you might have.
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