The Expense Allowance Scheme (WKR) came into effect on 1 January 2015 and is now applicable to every employer in Netherlands. It replaces all existing tax rules for reimbursements and allowances.
Everything reimbursed and/or paid out in benefits as part of the employer-employee relationship is now regarded as PAY. However, there are a few exceptions, the main one being so-called intermediate costs. For example, the cost of business meals, parking for business meetings and external public transport costs incurred for business meetings.
Costs which do not fall under the above exceptions can be reimbursed/paid out net to a maximum of 1.2% of the fiscal wage bill (‘allowance’). If more than the allowance is reimbursed/paid out, a retrospective levy of 80% is charged on the excess. Please note: The amounts allocated to the allowance should include VAT.
All reimbursements/benefits not covered by the above exceptions and categories must be regarded as pay or allocated to the allowance.
Please note that particular wage components must always be treated as pay and may not be allocated to the allowance:
- the additional tax liability for a company car/motorbike;
- payments of and/or failure to recover fines.
XXImo mobility card
The XXImo mobility card offers business travellers a new and unique mobility solution. The XXImo mobility card makes it possible to plan, administer and pay for all business travel. With the XXImo mobility card, the employee decides for themselves what is the best way to travel from A to B – by car alone, by car and public transport or by a combination of taxi, bicycle and public transport. In addition, employees can use the XXImo mobility card to book and pay for hotels or meeting venues.
All transactions with XXImo are shown on a single itemised summary invoice. XXImo customers can use this invoice for their VAT returns. In addition to the monthly invoice, XXImo provides an online transaction summary every month. This clearly presents all the transactions per cardholder, including all the details of the transaction – for example, the time and date of the transaction, where the transaction took place and in the case of train journeys, all check-in and check-out data. In addition, based on a specific profile entered previously, the XXImo customer can receive a periodic report of irregular behaviour by cardholders. For example, excessive expenditure, anomalous spending patterns or expenditure outside working hours. In this way, an exception report is generated instead of having to monitor all transactions. This is one of the advantages of digitally recording all transaction details and having them analysed by a system.
The above means that the XXImo mobility card involves a lot less administrative work than recording and paying out individual expense claims, with all the accompanying individual receipts and invoices, while at the same time providing tools with which to efficiently demonstrate the impact of the Expense Allowance Scheme and control the associated financial risks. In addition, excess reporting avoids a lot of manual checking.