This means that as of 1 January 2022, employers can no longer make use of the so-called working conditions exemption (‘Arbo exemption’) if the costs of a provision are insufficiently related to legally mandatory working condition provisions. Until 1 January 2022 it was possible to provide the costs related to non-compulsory occupational health and safety provisions included in the employer's working conditions policy, tax-free. However, an occupational health and safety policy can include more than just provisions that are directly related to the employer's obligations. Mandatory occupational health and safety provisions include, for example, an ergonomically sound office chair, a footstool for computer screen work and computer screen glasses. Due to the amendment, the exemption no longer applies to, for example, the generic provision of health checks, ‘chair massages’, the stop-smoking course or sports activities.

If you are unsure whether the exemption is (still) applicable as a result of the change, please feel free to contact your trusted adviser or one of the tax advisers of our Employment & Benefits team.