Which costs are covered by the work-related costs scheme and which are not? You must formally designate them in advance. In practice, however, many business-owners find this to be a lot of bother. Fortunately, that is about to come to an end as the Tax and Customs Administration has this year published a proposed text which you can easily adopt to provide a general designation that will clarify whether or not allowances and employment benefits fall under the work-related costs scheme.


The text of the general designation provided by the Tax and Customs Administration reads as follows:

 

 “[Name employer] hereby declares that from [date]... all allowances and employment benefits forming part of the salary in the meaning of the Wages and Salaries Tax Act 1964 (hereafter WST), as well as workplace facilities, insofar as these are not exempt under Section 11 ff. WST, will be designated as salary for final levy purposes.

This designation does not apply:

  • insofar as the amount of the designated allowances and employment benefits are considerably more than the amount of allowances and employment benefits that are generally provided under similar circumstances elsewhere;
  • insofar as [Employer’s name] has added the salary to the individually taxed salary of the employee, or should have added it under the employment conditions that apply within the company.”

We recommend that you make use of this text in your administrative records. If you are a client of HBK, we will, of course, arrange this for you.

Please contact Natasja Uitendaal: Dit e-mailadres wordt beveiligd tegen spambots. JavaScript dient ingeschakeld te zijn om het te bekijken. if you have any questions about the work-related costs scheme.