The WKR is a Dutch tax scheme that allows employers to provide tax-free allowances, benefits in kind, and provisions to employees. It has been mandatory since 2015 for all employers in the Netherlands.
The scheme is based on the principle that everything provided to employees is taxable, unless it is defined under specific exemptions or within the Discretionary Scope / budget, referred to in Dutch as Vrije Ruimte.
The employer is responsible for applying the WKR and deciding which discretionary benefits to offer. HR may propose benefits, while finance and payroll assess the budget, tax treatment and administration.
This section explains the WKR in detail and also how to organise the steps and actions that follow from the WKR work throughout the year.
Important Articles #
WKR Netherlands: Insights Tax-Free Employee Benefits & Allowances #
The Work-Related Costs Scheme: WKR [Werkkostenregeling] by the Tax and Customs administration of the Netherlands, allows employers to spend part of their total taxable wage (Discretionary Scope) without tax liability, on reimbursements, and benefits in kind.
This article is written to give an overview of the Dutch Work-Related Costs Scheme; WKR, including its purpose, benefits, limitations, and the role of HR and the Works Council.
WKR Netherlands: Insights Tax-Free Employee Benefits & Allowances.
WKR Netherlands: Employer Responsibilities Explained #
Under the Work-Related Costs Scheme (WKR), employers can designate certain reimbursements and employee benefits as final levy wage components. Qualifying benefits can then be provided without taxing them through the employee’s salary.
Let’s explore the employer responsibilities.