Staff discounts no longer automatically tax-free
There is a plan but the government has yet to decide
The government has proposed a change in rules. The proposal will also be debated in the Lower and Upper Houses of Parliament. The proposal may therefore still change, but it can be helpful to be aware of this in advance.
For whom?
- entrepreneurs who offer their staff discounts on products from their own business
What changes?
Are you an employer and do you offer your staff discounts on products from your own business? For example, discounts on groceries, clothing, electronics, family subscriptions, airline tickets, mortgage advice, or insurance premiums. From 1 January 2027, these will no longer be automatically tax-free.
Currently, you can offer your staff a 20% discount up to a maximum of €500 per year without having to withhold wage tax on this amount.
From 1 January 2027, you will still be able to offer your staff tax-free discounts via the discretionary margin (vrije ruimte) under the work-related costs scheme. If the discretionary margin has been used up, you will have to pay tax (the final levy, eindheffing) on the extra amount. The final levy is 80%.
When?
The change in law is expected to enter into effect on 1 January 2027.