Glossary

The work-related expenses scheme (werkkostenregeling, WKR) determines which reimbursements and benefits an employer may provide to employees tax-free. Each year you may spend up to 1.92% of the total fiscal wage bill on untaxed extras — the so-called free space. Certain reimbursements are always exempt, such as travel allowance up to €0.23 per km. If you exceed the free space, you pay 80% final levy on the excess.