Dutch Ministry of Finance publishes new guidelines on reimbursement of business travel expenses
On 23 June 2014 the Dutch Ministry of Finance published an update of a Directive with guidelines for the tax treatment of benefits provided by employers to employees, including the reimbursement of expenses incurred during business trips abroad, such as meals, lodging and out-of-pocket expenses.
Where certain conditions are met, employers can reimburse employees for certain expenses incurred on business trips abroad up to the level of the tax free amounts available to government officials travelling abroad on government business. However, the updated Directive reduces the amounts which can be reimbursed tax-free.
Where employers pay employees a fixed allowance to cover expenses incurred on business trips, they are required to determine whether the circumstances are sufficiently similar to those involving government officials on business trips for the allowances to paid wholly or partly tax free. To be sure that this condition is met employers can submit their travel policies with the Dutch Tax Administration for approval.
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.
Circular 230 disclosure
To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.