The Cabinet, in a Chamber letter responded to a Labour Foundation opinion on the reimbursement of travel expenses to employees.
Legal minimum travel allowance?
The Cabinet endorses the Labour Foundation's basic premise: travel costs for work are among the expenses for which compensation must be properly regulated. Nevertheless, the Foundation recommends not creating a legal obligation for a minimum travel allowance, but leaving the making of agreements on travel expenses (allowances) to the decentralised collective bargaining tables.
Parking charges
The Foundation recommends that in addition to the untaxed travel allowance of €0.23 per kilometre, it should also be possible to reimburse parking costs tax-free. Currently, all travel-related costs (i.e. including toll, ferry and parking costs) are deemed to be included in the €0.23 per kilometre.
The Cabinet notes that employers are free to make tax-free allowances or benefits in kind in the free space of the working expenses scheme on top of the €0.23 per kilometre. This could be a higher mileage allowance or an allowance for parking costs.
The Cabinet promises to explicitly include parking charges in the upcoming review of travel allowance.
Share bikes
The rules on additional taxable income for the private use of bicycles provided by employers to employees (7% of the value of the bicycle) creates ambiguity for hub bicycles, service bicycles, public transport bicycles and other share bicycles. The Cabinet indicates that there is no intention to tax the use of such bicycles. This will be clarified in the 2026 Tax Plan Package.
Share cars
The Cabinet sees no reason to deviate from the addition rules for shared cars. Among other things, shared cars are made available as part of a mobility budget. These cars are subject to the existing tax rules for cars provided by the employer.