Netherlands Work-Related Costs Report
In the Netherlands, a work-related costs scheme or werkkostenregeling (WKR) is introduced as a regime for tax-free allowances, benefits, and in-kind provisions for employees.
Under the WKR, employers have a budget determined by a certain percentage of the taxable wages up to a certain baseline. From this budget, they can spend on allowances and benefits for employees tax-free. As of 2021, based on the Netherlands legislation, the WKR budget is 3.0% of the fiscal salary up to 400,000 euros (baseline), and 1.18% of the amount over the baseline.
When the amount of allowances and benefits exceed this WKR budget, also known legally as discretionary scope or free space, the employers are taxed. Taxation of the excess is governed by certain percentages.
The Netherlands Localization SuiteApp provides a system that lets you categorize, organize, and monitor your taxable and tax-exempted allowances and benefits under WKR.
The SuiteApp's features for WKR reporting are only compatible with NetSuite OneWorld accounts.
Using the WKR reporting system in the Netherlands Localization SuiteApp, you can:
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Set the terms for calculating your WKR budget, and baseline amounts for calculating the tax levy.
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Designate your expenses to WKR and categorize them under nontaxable employee benefits.
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View a report of your WKR budget, and the tax that will be levied based on the excess amount from your WKR budget.
For information about using the WKR report, read the following topics:
For information about the calculation of values in the report, read the following topics: