Dutch Ministry of Finance publishes new guidelines on reimbursement of business travel expenses

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On 23 June 2014 the Dutch Ministry of Finance published an update of a Directive with guidelines for the tax treatment of benefits provided by employers to employees, including the reimbursement of expenses incurred during business trips abroad, such as meals, lodging and out-of-pocket expenses.

Where certain conditions are met, employers can reimburse employees for certain expenses incurred on business trips abroad up to the level of the tax free amounts available to government officials travelling abroad on government business.  However, the updated Directive reduces the amounts which can be reimbursed tax-free.  

Where employers pay employees a fixed allowance to cover expenses incurred on business trips, they are required to  determine whether the circumstances are sufficiently similar to those involving  government officials on business trips for the allowances to paid wholly or partly tax free. To be sure that this condition is met employers can submit their travel policies with the Dutch Tax Administration for approval.

Resources

Directive for government officials (in Dutch language)

Updated Directive dated 23 June 2014 (in Dutch language)

For further information or to discuss the consequences of the above, please contact Rina Driece, on +31 10 224 6 424 at Loyens & Loeff Rotterdam – www.loyensloeff.com. 

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