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> Exemption in the personal income tax for the commuting costs
Exemption in the personal income tax for the commuting costs
Depending on the way in which the employee travels from his home to his work, he is entitled to a partial tax exemption of the reimbursement of the commuting costs by the employer. This exemption also applies to those who drive a company car. From the fiscal year 2010 on, the reimbursement will be exempted up to a maximum amount of 350 euros. This exemption only applies to taxpayers who make use of the legal fixed allowance for costs.
Personal car:
The employee is entitled to an exemption of 350 euros maximum. This exemption only applies if the employee makes use of the legal fixed allowance for costs.
Company car:
If there is a taxable benefit ensuing from the use of the company car, the employee is entitled to an exemption of 350 euros maximum.
Public transport:
Public transport includes the train, tram, bus or metro provided by public transport companies. It is not necessary for one to have a season ticket or to use the public transport on a regular basis. Furthermore, the trips that one makes need not be fully or mainly undertaken through use of public transport. The amount of the reimbursement or the compensation of the expenses by the employer is fully exempted.
Bicycle:
If the employer goes to work by bicycle and receives a bicycle allowance from the employer, the exemption is based on a rate of 0.15 euros per kilometre. This must be calculated on the basis of the number of kilometres that one has ridden in a month. The number of kilometres is not limited. The allowance need not be declared in the tax return form. If the employer pays a higher allowance, than the part which exceeds 0.15 euros is taxed. It is only that part that must be declared in thetax return form. Fixed monthly allowances are only exempted in a limited way (350 euros maximum).
If the employer goes to work by bicycle and receives a bicycle allowance from the employer, the exemption is based on a rate of 0.15 euros per kilometre. This must be calculated on the basis of the number of kilometres that one has ridden in a month. The number of kilometres is not limited. The allowance need not be declared in the tax return form. If the employer pays a higher allowance, than the part which exceeds 0.15 euros is taxed. It is only that part that must be declared in thetax return form. Fixed monthly allowances are only exempted in a limited way (350 euros maximum).
How does the employee acquire the exemption?
The exemption is not given automatically. In order to make an appointment, one must use the section "VAK IV" code 1255-06/2255-73. If one uses a combination of different means of transport to commute from home to work and back, one is entitled to claim the different exemptions one has made use of. The exempted amounts are then determined for each means of transport that has been used and then added up together.
(Source: Netto)
(Source: Netto)