Due to international tensions and rising fuel prices, the government has taken several measures. Below we explain these measures.
The increase of the untaxed travel allowance has been approved
Earlier we informed you about the imminent increase of the untaxed travel allowance. Meanwhile, this increase is final. Through a policy decision, the State Secretary has announced that the untaxed reimbursement will be increased from €0.23 per kilometer to €0.25 per kilometer for all of 2026. This means that employers may provide untaxed reimbursement of € 0.25 per business kilometer (commuting included). It is important to check your own terms of employment. It may show that your organization defaults to the tax maximum. In other cases, increasing the allowance could be an option, possibly in the form of an exchange arrangement.
For more information, please refer to our previously published article: Untaxed travel allowance increases retroactively to € 0.25 in 2026 - Govers Accountants / Advisors
Abolition of discount on industry-specific products
The widening of the untaxed travel allowance must of course be paid from somewhere. As of January 1, 2027, the targeted exemption for industry-specific products will therefore be abolished. This exemption allows employers to give employees discounts on products from their own company or industry, without having to pay income tax on these (provided that the conditions are met). This includes a maximum exemption of €500 per employee per year and a maximum discount of 20% on the economic value.
This measure will structurally generate € 126 million in additional tax revenue. The abolition is part of broader financial measures of the cabinet, among others to cover expenses as a result of international developments, including conflicts in the Middle East.
Employers can still offer the discount on sector-specific products to employees, but from 2027 this will have to be fully accommodated in the free space of the work-related costs scheme.
For more information on employee discounts within the WKR, please refer to: Employee discounts - the fiscal rules of the game highlighted - Govers Accountants / Advisors
In conclusion
If you have any questions after reading the above, please feel free to contact your Govers contact person or the Payroll Tax focus group at loonheffingen@govers.nl or by phone at 040 2504 504.