Work Costs Scheme WKR in Den Haag: Everything for Local Employers and Employees
The work costs scheme (WKR) allows Den Haag employers, such as those at the Municipality of Den Haag or local offices, to offer reimbursements and facilities tax-free within a 'free space'. This portion of the payroll sum enables secondary employment conditions, such as travel expenses from Scheveningen to the city center or a Sinterklaas gift, without wage tax for the employee. Ideal for keeping the Den Haag labor market attractive. More about travel expense allowances and WKR.
What Does the Work Costs Scheme Entail for Den Haag?
The WKR governs the tax treatment of facilitation expenses, such as commuting travel reimbursements in the Den Haag region, mobile subscriptions, or lunch in the city. Since 2011, it has replaced the old deemed benefit rules with one simple system: a forfait percentage of the fiscal payroll may be spent tax-free. If the free space is exceeded, 80% tax applies to the excess.
Key point: specific exemptions, such as reimbursements for commuting by bike or public transport in Den Haag, always remain untaxed and outside the free space. This makes the scheme flexible for Den Haag businesses.
Legal Basis of the WKR
Anchored in the Wage Tax Act 1964 (Wage Tax Act), Article 31, the WKR provides that employers may allocate a percentage of the fiscal payroll (gross salary plus holiday allowance) as free space. The Tax Authorities update this annually.
In 2024, it is 1.92% up to €400,000 payroll and 1.18% above (Tax Authorities 2023). Den Haag employers track this via the forfait calculator portal and report it in the payroll tax return. Errors lead to additional assessments; in disputes, the Den Haag District Court offers recourse.
| Year | Free Space (% Payroll) | Remarks |
|---|---|---|
| 2019 | 1.80% | Standard Scheme |
| 2020-2023 | 1.70% | Adjusted due to COVID |
| 2024 | 1.92% (up to €400k), 1.18% above | Boost for Vitality |
Calculate the Free Space for Your Den Haag Business
Free space = forfait × payroll. Example: €1,000,000 payroll in 2024 yields (1.92% × €400,000) + (1.18% × €600,000) = €7,680 + €7,080 = €14,760. Excess is 80% taxable. Carry-forward to the next year is possible (up to 80%). Tax Authorities tools simplify this for Den Haag.
Specific Exemptions and Den Haag Applications
Outside the free space, specific exemptions remain untaxed:
- Commuting expenses (up to €0.23/km, 2024, ideal for Den Haag commuters).
- Business phone and internet.
- Work-related training.
- Relocation costs in the region.
WKR Examples in Den Haag Practice
Example 1: Municipal Employee. €200 public transport costs (exempt), €50 business gift, and €300 laptop (free space). With €500,000 payroll (€9,600 space), no issue.
Example 2: Excess for SMEs. Den Haag entrepreneur with €200,000 payroll (€3,840 space) spends €5,000 on parties: €1,160 excess × 80% = €928 tax.
Example 3: Vitality. Extra budget for fitness, popular among young Den Haag professionals since 2021.
Rights and Obligations under WKR in Den Haag
Employers:
- Obligation: Maintain administration and filings.
- Benefit: Flexible benefits within the space.
Employees:
- Benefit: Tax-free, no reporting required.
- Obligation: Report private use.
FAQ: WKR Den Haag
What if the free space is exceeded?
80% tax on the excess. Carry-forward or planning prevents this.
Do travel expenses fall under WKR?
No, commuting is exempt. Details here.
WKR with collective agreements in Den Haag?
Yes, provided they comply with WKR. Check tax compliance.
WKR for Freelancers or Agency Workers?
Only employment relationships; freelancers via VAT, agency under hirer.
Tips for Optimal WKR Use in Den Haag
- Plan Early: Calculate space and discuss with team, e.g., at Municipality of Den Haag.
- Prioritize Smartly: Use exemptions for travel expenses first.
- Seek Local Advice: Legal Aid Desk Den Haag.
- Stay Updated: Via Tax Authorities portal.