Key tax tips for employers and employees

The tips are based on the Tax Plan 2027 as announced by the Dutch government on Budget Day. The Dutch House of Representatives and the Dutch Senate still have to vote on the Tax Plan 2027.

Wtta: prepare your organisation in time for the new Admission of Workers Supply Act 

The Admission of Workers Supply Act ('Wet toelating terbeschikkingstelling van arbeidskrachten' or 'Wtta') will enter into force on 1 January 2027 and introduce a mandatory admission system for organisations that supply workers. Enforcement of the admission requirement is expected to commence on 1 January 2028. Organisations that hire out or engage external workers should assess in a timely manner whether the Wtta applies to their activities and identify any actions that may be required. 

If you intend to rely on the transitional regime as a labour supplier, 2026 will already be a crucial year. Labour suppliers can register for the transitional arrangement between 1 November and 31 December 2026. Pre-registration must be completed through eHerkenning. If this is not yet available (for the appropriate authorized person), arrangements should be made as soon as possible. Subsequently, an admission or exemption request must be submitted between 1 May and 30 June 2027. A specific arrangement applies to labour suppliers holding an SNA certification. In addition, organisations should ensure that the required documentation is in place and review their contracts and processes against the Wtta compliance framework. By starting these preparations in 2026, potential implementation issues can be identified and addressed at an early stage. 

Although the Wtta primarily affects organisations supplying workers, it also introduces additional obligations for organisations engaging temporary labour. Hiring organisations must have insight into which workers are engaged through which supplier and maintain adequate administrative records. It is therefore equally important for hirers to prepare for the Wtta. Ensure that all labour supply arrangements are mapped and that internal processes and recordkeeping are aligned with the new requirements. 

Would you like to learn more about the Wtta and the actions your organisation may need to take? Read our article on this subject.

Assess the use of self-employed contractors (ZZP workers) 

Does your organisation hire self-employed contractors? If so, it remains important to assess these working relationships carefully. Since 1 January 2025, the Dutch Tax Authorities have resumed full enforcement against false self-employment arrangements. Furthermore, the draft Self-Employment Act (‘Zelfstandigenwet’) has recently been published and is expected to provide greater clarity from 2028 onwards regarding when an individual may genuinely operate as a self-employed contractor. Given the increased focus on false self-employment and the active enforcement by the Dutch Tax Authorities, organisations are advised to identify their contractor population, periodically review both the contractual arrangements and the actual working practices, and properly document the outcomes of these assessments. 

 Make use of work-related costs scheme 

Use the end of the year to review your administration on the work-related costs scheme (‘werkkostenregeling’ or ‘WKR’). Identify which reimbursements and benefits have been allocated to the discretionary budget (‘vrije ruimte’) in 2026 and determine how much of the available budget remains unused. Next, assess whether opportunities exist to make optimal use of the remaining discretionary budget or whether action is required to prevent an excess.  

When reviewing employment policies for 2027, employers may also wish to take into account the planned expansion of the discretionary budget. From 2027, the discretionary budget will increase to 2.16 per cent of the fiscal wage bill up to €400,000 and 1.18 per cent of the excess. If the available discretionary scope is exceeded, the employer will be liable for a final levy of 80 per cent. 

Employee discounts on industry-specific products will be abolished 

As of 1 January 2027, the specific tax exemption for employee discounts on industry-specific products will be abolished. Under the current rules, discounts of up to 20 per cent of the fair market value can be provided tax-free (to a maximum of €500 per employee per year). From 2027 onwards, employers may still provide such discounts tax-free, but only by allocating them to the discretionary scope of the work-related costs scheme (‘werkkostenregeling’ or ‘WKR’). As a result, less discretionary budget will remain available for other reimbursements and benefits. Organisations should therefore identify and review the employee discount arrangements currently in place and assess the impact on the available discretionary scope. Based on this assessment, employers can determine whether the existing arrangements should continue unchanged or whether adjustments to the scheme or the broader employment package are required.

Increase tax-free travel allowance 

The tax-free travel allowance was increased retroactively to 1 January 2026 from € 0.23 to € 0.25 per kilometer. Employers can decide whether they wish to adjust their travel expenses scheme in line with this increase. When implementing any changes, do not forget to update employee handbooks, employment policies and internal expense claim procedures as necessary. 

Salary thresholds for highly skilled migrants and employees using the expat scheme 

Do you employ individuals benefiting from the Dutch expat scheme (formerly the 30% ruling) or employees holding a highly skilled migrant permit? If so, verify before year-end that the applicable salary thresholds have been met and determine whether any additional salary payments are required. In addition, assess whether salary adjustments will be necessary for 2027. 

Employers should also take into account the maximum salary base to which the expat scheme can be applied. This cap amounts to € 262,000 in 2026 and will increase to € 273,000 in 2027. 

Changes to expat scheme from 2027 

Several important changes to the Dutch expat scheme (formerly the '30% ruling') will take effect on 1 January 2027. For employees not covered by the transitional rules, the maximum tax-free reimbursement will be reduced from 30 per cent to 27 per cent. Employees for whom the scheme was already being applied by the end of 2023 may continue to benefit from the 30 per cent rate for the remainder of the applicable term, subject to the transitional provisions. 

In addition, the transitional rules for partial non-resident taxpayer status will end on 1 January 2027. Employees residing in the Netherlands who currently rely on this provision will no longer be treated as non-resident taxpayers in Box 2 and Box 3 for Dutch personal income tax purposes. This may have implications for the Dutch taxation of substantial shareholdings, investment income and assets.  

Employers are advised to identify the employees affected by these changes before year-end, assess the impact on their net remuneration and any tax equalization arrangements, and communicate the consequences to the affected employees in a timely manner.

Reporting obligation for payments to individuals 

Have you made payments to individuals who are not your employees? If so, a reporting obligation may apply. This obligation generally covers individuals who do not issue invoices or who invoice without VAT, for example due to a VAT exemption or the application of the Dutch Small Businesses Scheme (‘KOR’). Invoices stating ‘VAT reverse charged’ may also fall within the scope of this reporting requirement. 

Review whether you have collected all required information from the recipient. This information must be submitted to the Dutch Tax Authorities no later than 1 February of the calendar year following the year in which the payment was made. The following information must be reported: 

• The amount paid; 
• The payment date; 
• The following information from the recipient: 
• Dutch citizen service number (‘BSN’); 
• Name; 
• Address; 
• Date of birth. 

New final levy on fossil-fuel company cars 

From 1 January 2027, employers will be subject to a final levy of 12 per cent of the vehicle's list price if they make non-fully emission-free passenger vehicles available to employees for private use. For this purpose, commuting is regarded as a private use. The levy is born entirely by the employer. 

A transitional arrangement applies to vehicles that were already made available to employees on 31 December 2026. This transitional regime will remain in effect until 1 January 2031. Before entering into or renewing lease agreements, employers should assess the financial impact of this measure. Organisations are advised to identify which non-fully electric vehicles are currently available to employees, which lease contracts expire during 2026 and 2027, and what additional employer costs may arise as result of this new final levy. 

VAT deduction limit on employee benefits and corporate gifts ('BU'A)  

If you have deducted VAT on expenses for employee benefits or corporate gifts during 2026, an annual review is required to assess whether the deduction can be maintained. This is because businesses can only deduct VAT on expenses for employee benefits or other corporate gifts if they do not exceed the threshold amount. If the expenses exceed € 227 (excluding VAT) per employee or business relation, a VAT correction is generally required. An employee’s own contribution does not reduce the expenses for the purposes of this assessment. Special attention is required for the VAT treatment of home working facilities.

VAT correction for private use of company car  

If you provide a lease car to your employees and the car is also used for private purposes, a year-end correction is required in the last VAT return of the year. A flat rate of 2.7 per cent from the list price (or 1.5 per cent in specific cases for cars that have been in use for more than 5 years) can be used for this purpose.   
 
Please note that commuting is also considered as private use for VAT purposes (unlike for payroll tax purposes). A ‘no private use’ declaration for payroll tax purposes cannot exclude a VAT correction. Moreover, the 500 km limit does not apply for VAT purposes (as is the case for payroll tax purposes).   

Want to know more about the above year-end tips?  

Would you like to know more about any subject from these year-end tips? Your Forvis Mazars tax advisor is more than happy to assist you further.