The tax rules for home-based employees and their employers

Rolling straight from your bed to the desk to start working. No traffic jams, train delays, or challenging bike rides to the office anymore. Since the pandemic, more and more people are working from home. But besides the clear advantages mentioned above, does it also have tax benefits? What are the fiscal implications of remote working? And what are the consequences for employers with employees working from home? Below, we discuss several aspects associated with remote working. These tax laws may change (annually), so it is advisable to check periodically whether the relevant consequences still apply to you.

The work related costs scheme

Do you have a work laptop, phone, or perhaps even a gym subscription through your employer? The costs for these work-related items can be purchased tax-free by the employer. This is called the Work-Related Costs Scheme (WKR). Remote workers who spend a lot of time at a desk can also be offered furniture such as desks and office chairs in this way. This allows the employer to ensure that remote workers always have a comfortable working environment without it costing a fortune. The WKR is not only applicable to remote workers. A similar scheme that only applies to remote working employees is the remote work allowance. This means that companies can offer their remote workers a daily allowance to cover, for example, costs for coffee, water, and electricity (partially). No, this will certainly not be enough for the overly expensive cappuccino with oat milk and vanilla. It amounts to a (tax-free) allowance of up to €1.80 per day.

The deductions

To be able to work from home, many items are needed. For the Tax Authority, this goes beyond just logical office supplies such as laptops. To actually work behind your laptop, you also need internet, of course. Are you a self-employed entrepreneur? Then it may be possible to deduct the costs of all these necessities from your taxable income. There are conditions attached to this. Curious if you meet these conditions? Feel free to ask us for help, and we’ll check it together.

International tax rules

Sometimes you work from home, but not your home in the Netherlands. Somewhere nice and warm on the beach with a mocktail next to you. These international remote workers run the risk of accidentally having to pay double taxes. To prevent that, tax treaties are important. These help to clarify which taxes you have to pay in one country and which in another. How this works exactly varies per employee. It is therefore wise to consult a tax advisor so that you don’t end up paying all taxes in both countries. That would be a waste of money. Employers also find it helpful to have more information about this if they have such international employees.

We are happy to help!

As always, there are conditions attached to certain tax rules or they’re just different for each individual. On top of that, rules tend to change every so often. That’s why it’s advisable to seek professional advice on the remote working topic. The Tax Savers can completely figure out which rules apply to you and what they mean for you. Fill in the contact form or call us at 020-217012.

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