25-10-2011
Interim evaluation Working Cost Scheme

On 24 October 2011 the State Secretary of Finance revealed the interim evaluation of the working cost scheme. This evaluation gives information that is important for daily practice.

- The budget of 1,4% will increase to 1,6%; the budget will be 1,5% of the total wages as of the 1 January 2012. As of the 1 January 2013 the budget will be 1,6%. In 2012 the increase will have no financial impact, because the basis of the budget will be lowered (based on new legislation). As of 2013 the increase will result in a larger budget for tax free reimbursement or fringe benefits.

- Simplifying administrative burden for contributions paid by employees; the current regulations do not allow to keep collective records for contributions paid by employees. These contributions should be recorded on a employee level. In order to reduce this administrative burden, the State Secretary promised to draw up regulations which make it possible to keep records on a collective level.

- Next interim evaluation; aim for the next evaluation is to follow up if employers are able to implement the working cost scheme. Since, based on the outcome of the current interim evaluation, this is not clear the next evaluation will be earlier then initially planned. The State Secretary will also explore the possibilities if an employer can, at his discretion, increase his budget and simultaneously reduce the use of specific exemptions. This could lead to a reduction of the administrative burden for the employer.

Should you have any queries or require more information, please contact Chris van Wijngaarden (chris.vanwijngaarden@vmwtaxand.nl) or Maarten Krikke (maarten.krikke@vmwtaxand.nl), telephone number +31 20 301 66 33.