A percentage of an employees’ taxable wages (called the ‘vrije ruimte’) can be spent on tax-free provisions and reimbursements for your employees. Moreover, various provisions are exempt from taxation (called ‘gerichte vrijstelling’ in Dutch)
Provisions exempt from taxation do not have to be charged to the ‘vrije ruimte’ and hence do not reduce its scope. In order to avoid the situation in which some of the facilities used by employees in the office will reduce the scope of the ‘vrije ruimte’, these facilities have been assigned a ‘nihilwaardering’ (zero value status). This zero value status applies only to wages in-kind, not to reimbursements. Some facilities in the office have a been assigned a standard value, in which case they are charged to the ‘vrije ruimte’.