The arrangements with the tax authorities The tax treatment of accommodation allowances under the Collective Labour Agreement for commercial goods transport was extended last year until 31 December 2021. Under these arrangements, you may continue to pay all accommodation allowances under Articles 40 and 41 of the Collective Labour Agreement tax-free.
Accommodation allowances
Articles 40 and 41 of the collective labour agreement relate to the expenses incurred by a driver whilst on the road. These include meals such as breakfast, lunch and dinner, as well as other refreshments. It also covers minor expenses such as toilet facilities and laundry costs. These allowances, as set out in the collective labour agreement, may be paid tax-free. They fall under the specific exemptions. They do not affect your allowance under the work-related expenses scheme (1.2% of the taxable wage bill).
What if you want to pay more?
If, as an employer, you wish to provide more, the excess amount is taxed individually at the employee’s end. This is only different if the excess is designated as a final levy component within the discretionary allowance. Only if you remain within this discretionary allowance is the excess untaxed. Any allowances or benefits you provide in excess of the discretionary allowance are subject to 80% final levy. Final levy means that the tax is payable by the employer.
Example
Suppose you have a taxable wage bill of €1,000,000. Your discretionary allowance would then be €12,000. If you pay €19,000 in accommodation allowances in excess of the amounts set out in the collective labour agreement, you will exceed the discretionary allowance by €7,000. You will pay €5,600 in final levy (80%) on this amount. Your total costs will therefore amount to €24,600 instead of €19,000.
You can also tax the excess amount individually for each employee. In order to ensure that employees receive the same net remuneration, the employer must cover the income tax. This results in the income tax being included in the gross pay. VWGNijhof can calculate which option is best for you.