In Issue 1 In the 2023 Payroll Tax Newsletter, the Tax and Customs Administration sets out the changes to payroll tax for 2023.
Higher tax-free allowances
The flat-rate amounts for two specific exemptions are being increased. On the one hand, this concerns the tax-free mileage allowance, which is being increased from €0.19 per kilometre to €0.21. Secondly, the tax-free allowance for working from home is also being increased, from €2.00 per day worked from home to €2.15.
The allowance under the work-related expenses scheme will also be increased for 2023. For total payroll up to €400,000, the allowance is 3% (instead of 1.7%). The allowance for the total wage bill above €400,000 will not be increased: 1.18%.
(Write-off of) staff loans
The Newsletter reports that the following questions were raised during the debate on the 2023 Tax Plan.
- Can the employer use the (increased) tax-free allowance for 2023 to cover the interest benefit that the employee receives from an interest-free loan from the employer?
- Can the employer also make use of the (increased) tax-free allowance for a (partial) write-off of the loan?
The answer to both questions is: YES, that is possible! The interest relief or remission is granted as soon as it becomes clear that the employee does not have to pay the amount.
The interest benefit on an employee loan is valued at zero, but this valuation rule applies only if the employee has used the loan to purchase an (electric) bicycle or electric scooter.
30% control
The following two changes have been made to the 30% scheme.
- From 2023, a choice must be made each year during the first pay period between reimbursing actual extraterritorial expenses and the 30% scheme.
- From 2024, a maximum amount will apply to the 30% scheme, up to which a targeted exemption may be granted (capping). This maximum is equal to 30% of the WNT standard (for 2022, this would amount to: 30% * €216,000 = €64,800). For employees to whom the 30% scheme was applied in the final pay period of 2022, the cap will only apply from 2026 onwards.
Restore the anonymous rate
Pay-as-you-earn deductions for employees who have provided incorrect or incomplete details of their name, address or BSN must be calculated using the anonymous rate 52%. With effect from 2023, this may be rectified retrospectively once the correct and complete details have been received from the employee. However, this rectification may only be carried out for the current year.