News - Netherlands

Netherlands - April 2021

Continuation of the fixed commuting allowance during COVID-19

Employers may grant a tax-exempt fixed commuting allowance to their employees, dependent on i.a. commuting distance, travel frequency and EUR 0.19/km. Because of the current COVID-19 measures, employees preferably work at home as much as possible, which would have a negative impact, in principle, because of the much lower travel frequency.

In order to address this undesirable effect, the State Secretary for Finance approved that changes in an employee’s travel pattern because of COVID-19 may be ignored from 13 March 2020 up to (at least) 30 June 2021, provided an unconditional right to the allowance existed prior to 13 March 2020.

This article was produced by CELIA member firm Loyens & Loeff.