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Offering tax-free public transport card becomes easier for employers

This information is provided by:Netherlands Enterprise Agency, RVONetherlands Enterprise Agency, RVONederlandse versiePrinsjesdag suitcaseThis is a Prinsjesdag articleSee more expected changesEffective date: 1 January 2024

What changes?

Do you employ staff? From 1 January 2024, you will no longer have to deduct wage tax from your employees’ wages if you pay them back for the costs of a public transport card (an ‘ov-kaart’). This is on condition that your employee uses the card for business travel. In the current situation, you deduct wage tax if the employee does not use the card often enough for business travel.

This measure makes it easier for you to offer a tax-free public transport card. And your employee does not have to pay extra wage tax.

From 2024, these are the situations in which you do not have to deduct wage tax:

  • You supply the card: you buy the public transport card and your employee is the owner and uses the public transport card for business travel.
  • You pay back the public transport card: your employee buys and owns the public transport card and you pay them back the costs. Your employee uses the card for business travel.

For whom?

  • entrepreneurs who employ staff


The change in law is expected to enter into effect on 1 January 2024.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Upper and Lower Houses (Eerste en Tweede Kamer) of parliament or proclamation of the Order in Council (Algemene Maatregel van Bestuur, AMvB) or ministerial decree and publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch).

Prinsjesdag suitcasePrinsjesdag 2023See all expected changes for entrepreneurs in 2024

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