The outgoing cabinet of the Dutch government has published a list of measures expected to be included in the Tax Plan for 2022. One of those measures is making a homeworking allowance (i.e. an allowance for employees to cover additional expenses incurred as a result of working from home) tax-exempt, meaning it will become part of an employee’s non-taxable income.
The cabinet has furthermore stated per legislative proposalwhich measures will be enacted, to be officially announced on Prinsjesdag 2021 (September 21, 2021). Of course, the proposals are not yet conclusive and the details can still change. It is, however, no surprise an untaxed homeworking allowance is one of the new measures to be enacted in 2022. Earlier, the cabinet had already stated it was looking into the possibility for this. If the current plans do not change, the cabinet is aiming to have homeworking allowances tax-exempt as of January 1, 2022. However, the precise details on how the measure will be implemented and enforced are still unknown.
This year, it is already possible to pay employees a homeworking allowance by declaring it as ‘eindheffingsloon’ (wages subject to a final levy) and including it in the ‘vrije ruimte’ (the budget for untaxed benefits and allowances). The ‘vrije ruimte’ has been increased slightly this year for exactly this purpose.