Dutch government extends approval for tax free fixed commuting allowance until 1 July 2021
The Dutch government has announced that the existing approval for tax-free commuting allowance will be extended until 1 July 2021.
The Dutch government has announced that the existing approval for tax-free commuting allowance will be extended until 1 July 2021. The approval applies to commuting allowances already granted to the employee before 13 March 2020.
Furthermore, the cabinet mentions that the introduction of a new tax-free allowance for expenses incurred when working at home is not to be expected before the end of this year.
The extension is a temporary measure. Many enterprises anticipate that their organization will change as a result of the COVID-19 situation. Therefore, they are reconsidering their policy for allowances and reimbursements. For more information about the tax treatment of allowances and reimbursements, please contact our Employment tax team.
Hans van RuitenPartner Tax adviser
Hans van Ruiten, tax adviser, is a member of the Employment & Benefits practice group in our Rotterdam office. He has a wide expertise (over 30 years of experience) in employment taxation matters. An important part of his practice is regarding equity incentives.T: +31 10 224 64 18 E: email@example.com