03 Feb Update on coronavirus tax measures: wage tax, global mobility and HR
Update on coronavirus tax measures: wage tax, global mobility and HR
3 February, 2021
After announcing its extension of the current lockdown on 12 January 2021, the government published a new letter to the House of Representatives about the extension of its economic support and recovery package on 21 January 2021. This included the extension of various tax measures. An overview follows below of the most important measures in respect of wage tax, global mobility and HR.
Extension of the approval to pay a tax-free expense allowance
An employer may continue to pay out both tax-free fixed expense allowances and tax-free fixed travel allowances tax free until 1 April 2021, even if the normal cost or travel pattern has changed, provided it granted the fixed allowances in question before 13 March 2020. As regards the tax-free fixed travel allowance, this was already approved until 1 February 2021 in December 2020.
Increase in the discretionary margin work-related expenses scheme in 2021
Just as in 2020, the discretionary margin for the work-related expenses scheme will be increased to 3% on the first € 400,000 of the wage sum . A discretionary margin of 1.18% applies above this amount.
Research on tax allowance for working from home
Research is set to be done on the possibility of a structural supplementary scheme for the tax-free reimbursement of the costs of working from home.
Extension of the approval of deferral of administrative obligations in respect of wage tax and national insurance contributions
If it is not currently possible to meet certain administrative obligations – the obligation to provide proof of identity, for example – due to the various coronavirus restrictions, you will not receive a penalty or have a rate increase imposed on you, provided you meet the obligations in question as soon as you are able to do so. This existing deferral will be extended until 1 July 2021.
Extension of international agreements
The Netherlands has made bilateral agreements with Belgium and Germany about the taxation of the income from employment of employees who live in the Netherlands but work in Belgium or Germany and vice versa. An employee will be able to choose between having his/her salary taxed on the basis of the actual distribution of work days in his/her country of residence and in the country of employment or to overlook the change in travel pattern caused by coronavirus and base taxation of the income in question on the distribution of work applicable prior to coronavirus, namely as it was in 2019. These agreements were already in place before 2020 and have now been extended until 1 July 2021. The social security position of employees will not change as a result of coronavirus either.
If you have any questions, please do not hesitate to contact Fabiënne Hol-van Goethem, tax lawyer, via firstname.lastname@example.org or +31 40 240 94 64.