TAG Tax

The coronavirus measure that employers can give their employees a tax-free allowance for fixed travel expenses will be extended until July 1, 2021. This regulation was initially valid until April 1 of this year.

Many employers still pay their employees compensation for fixed travel expenses and do not deduct taxes from them. Even when those employees mainly work from home. A condition for giving the untaxed compensation is that the employees also received this before 13 March 2020.

The cabinet is extending this measure because there are still employees with costs associated with traveling for work. Think of employees who have fixed costs for their own car or private lease car that they previously used for commuting. Or to employees who have chosen to extend their public transport subscription. Some employers also use the travel allowance as a home work allowance.

This article was originally published on KRC Van Elderen website at https://www.krcvanelderen.nl/actueel/verlenging-onbelast-vergoeden-vaste-reiskosten