• Service: Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 7/8/2014

Netherlands - Proposed changes to work-related (employer-provided) cost rules 

July 8: The Deputy Minister of Finance informed the Lower House about proposals to make the work-related costs rules (werkkostenregeling—WKR) easier to administer. The proposed changes would be effective 1 January 2015, and included in the 2015 tax plan.

The following elements would be part of the proposed changes to the WKR regime:

  • A reduced fixed exemption rate
  • Option to apply a transitional WKR regime no longer available
  • Limit the introduction of a “necessity criterion” (i.e., items that employers consider essential to business operations and can be provided to employees without having to consider private use) to tools, computers, and mobile communication devices—thus, laptops, tablets, smartphones and mobile telephones would no longer be treated differently for tax purposes
  • Introduce group rules, so that fixed exemptions, reimbursements, and provisions of each group entity can be added together for a total amount
  • Exemption for certain business-specific products
  • Distinction between reimbursements, provisions, and items made available in respect of workplace-related provisions would no longer apply
  • Annual payment methodology
  • Expense to include an average value added tax (VAT) rate

Read a July 2014 report prepared by the KPMG member firm in the Netherlands: Changes to the work-related costs rules announced

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