How Mature is The Netherlands in Terms of Mobility?

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The 2023 Mobility Maturity Map E-Book (just released) reveals that The Netherlands came second in the ranking with 23 out of 40 points. With 502 cars per 1,000 inhabitants, the Dutch scored well below the European average of 567 on car ownership. 30% of the Dutch population lives in urban areas. Over 73% of corporates will review their company car benefits policy in 2023. 32% of the researched companies aim to introduce more flexibility in their mobility policies. Only the Belgian companies we looked at scored higher, with half introducing more flexibility. In the coming months, 68% of Dutch companies will encourage and support more environmentally friendly policies/behaviours.

Public transport

Dutch fiscal legislation allows companies to reimburse employees the total cost of public transport for their home-to-work travel, even if it is higher than the general reimbursement of €0.21 per km. The employee can use (one route of) public transport for the entire week or on weekdays only. This reimbursement is free of taxes and social security contributions, meaning no tax implications if the public transport is related to business travel or commuting.

Shared mobility

There are no employee tax implications if the shared mobility service (bike/car/scooter) is only available at the office for business travel, and the company pays for it. If the bike/car/scooter can be used for private trips, the rules of tax addition may apply.

The employer can reimburse the actual shared mobility costs tax-free (if it’s business-related). Otherwise, costs are borne by the WRCS forfeit.

Allowances for commuting purposes 

An employer can reimburse costs made for business travel and commute.

There are no tax implications If the mileage allowance is related to business travel or commuting with a maximum of €0.21 per km. Any reimbursement above that amount can be taxable, depending on the employer’s decision (gross wage or WRCS). The actual costs can be reimbursed for public transport, and a tax exemption applies.

Mobility budget

Companies can pay a travel cost compensation of €0.21 per kilometre free of tax, regardless of the mode of transport used. The reimbursement can be higher for public transport if the actual costs are reimbursed.

If employees use a mobility platform on which multiple mobility providers offer their services via a company account, the company pays for it.

Tax implications depend on the use of the mobility budget. Therefore, the tax implications are known afterwards. In principle, the budget will be gross wage. Depending on the use and purposes of the options (private or business) the reimbursement can be tax-exempt and borne by the WRCS forfeit. Otherwise, tax applies. 

You can read this article in full and read/download the 2023 Mobility Maturity Map E-Book for free here. 

Image: Shutterstock 1207259101 Maria Sbytova

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