Employers

Discretionary margin of work-related expenses scheme

In 2023, the discretionary margin for the work-related expenses scheme amounts to 3% of the taxable wage sum up to € 400,000. For the part of the taxable wage sum that is higher than € 400,000, the discretionary margin is 1.18%. The law mistakenly states that the maximum amount of discretionary margin in the first tax bracket in 2023 is € 6,800 (instead of € 12,000). This will be restored retroactively to 1 January 2023, which means that the maximum amount in the first tax bracket will be equal to 3% of € 400,000. From 2024 onwards, the percentage of discretionary margin will be reduced from 3% to 1.92% on a taxable wage sum up to € 400,000.

• Tip! Make sure that the discretionary margin within the work-related expenses scheme is used to the best effect this year.

Public transport subscriptions and off-peak discount passes

There is a proposal to specifically exempt the private use of public transport subscriptions or off-peak discount passes that are reimbursed or issued. This means that employers can always offer them tax-free, as long as it is likely that they will also be used for business travel, such as commuting.

• Tip! Employers would no longer need to keep records of private and business use in order to benefit from the exemption.

Limitation of the 30% facility

As of 1 January 2024, the 30% facility for incoming employees will be limited to what is known as the Balkenende standard (remuneration standard for senior civil servants, currently € 223,000). The 30% allowance will then be capped if the tax base is higher than this amount. A transitional arrangement is hereby established for incoming employees for whom the 30% facility is applied in the last payroll period of 2022. For them, the capping will only apply as from 1 January 2026.

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