Work Costs Scheme (WKR): Complete Guide for Delft Residents
The work costs scheme (WKR) allows employers in Delft, from startups at TU Delft to SMEs in the city center, to offer reimbursements and facilities tax-free within a 'free space'. This portion of the payroll sum enables secondary benefits such as bicycle commuting expenses or a Sinterklaas party without wage tax for the employee. Practical and attractive for the local job market. More about travel expense allowances and WKR.
What does the work costs scheme entail for Delft companies?
The WKR governs the tax treatment of non-delivery costs, such as reimbursements for bicycle commuting in bike-friendly Delft, mobile subscriptions, or work lunches. Since 2011, it has replaced old addition rules with one simple system: a forfait percentage of the fiscal payroll sum may be spent tax-free. Amounts exceeding the free space are subject to 80% tax on the excess.
Key point: targeted exemptions, such as commuting expenses, remain tax-free and outside the free space at all times. Ideal for commuters to The Hague or Rotterdam.
Legal Basis and Application in the Region
Anchored in the Wage Tax Act 1964, Article 31, employers may use a percentage of the fiscal payroll sum (gross salary plus holiday pay) as free space. The Dutch Tax Authority sets the percentage annually. For 2024: 1.92% up to €400,000 payroll sum and 1.18% above that.
Delft employers report this via the 'work costs forfait portal' in their payroll tax return. Errors may lead to assessments; consult the Juridisch Loket Delft for advice or the District Court of The Hague for disputes.
| Year | Free Space (% Payroll Sum) | Remarks |
|---|---|---|
| 2019 | 1.80% | Stable percentage |
| 2020-2023 | 1.70% | Reduction due to COVID |
| 2024 | 1.92% (up to €400k), 1.18% above | Increase for vitality |
Calculating the Free Space for Delft Payroll Sums
Free space = forfait × payroll sum. Example: a Delft company with €1,000,000 payroll sum in 2024: (1.92% × €400,000) + (1.18% × €600,000) = €7,680 + €7,080 = €14,760 tax-free. Excess is taxed at 80%. Carryover to the next year is possible (max. 80%). Use Dutch Tax Authority tools or seek assistance from the Municipality of Delft for local HR support.
Targeted Exemptions Outside the Free Space
Always tax-free:
- Commuting expenses (up to €0.23/km, perfect for Delft cyclists).
- Business phone and internet.
- Work-related study costs, e.g., TU Delft courses.
- Relocation costs for new employees.
Practical Examples for Delft Employers
Example 1: TU Delft Employee. €200 bicycle commuting (exempt), €50 Delft Blue Pop gift, and €300 laptop (free space). With €500,000 payroll sum (€9,600 space), no issue.
Example 2: Excess Spending. Local café with €200,000 payroll sum (€3,840 space) spends €5,000 on parties: excess €1,160 × 80% = €928 tax.
Example 3: Vitality. Extra budget for sports at Sportcampus Delft, appealing to young employees.
Rights and Obligations in the Delft Context
Employers:
- Obligation: Keep records and file returns; retain for 7 years.
- Right: Flexible benefits.
Employees:
- Right: Enjoy tax-free benefits.
- Obligation: Report private use.
Frequently Asked Questions about WKR in Delft
What if the free space is exceeded?
80% tax on the excess. Carryover or planning prevents this.
Do commuting expenses fall under WKR?
No, specifically exempt. More info.
Combination with collective agreement?
Yes, if tax-compliant; check via Juridisch Loket.
WKR for Self-Employed in Delft?
No, only employment relationships. Self-employed: VAT rules; temps via client.
Tips for Optimal WKR Use in Delft
- Plan early: Calculate space and discuss with team, e.g., vitality at local gyms.
- Prioritize exemptions: Maximize commuting and study for Delft residents.
- Seek local advice: From Municipality of Delft or Juridisch Loket Delft.
- Monitor: Use portals and avoid fines.