An increase of tax free allowance for commuting
By reducing the gross salary with the tax-exempt amount of travel allowance and the paying of this same amount as net travel allowance, you will receive a monthly net tax profit. The net profit depends on the travel distance and number of travel days per week. One should keep into account the possible regular travel allowance for commuting. The amount received for this will be deducted from the AVOM amount. The use of this object is limited to a single travel distance commuting per day measured by means of the most recent version of the digital ANWB route planner (fastest route and with the up-to-date travel situation switched off), the minimum amount to be paid is € 5.00 per month.
The rule employed by the Tax Authority indicates that one should make the calculation with 214 workable days per year (42.8 weeks). In order to calculate the tax free allowance, you can use the calculation rule in the example below.
Calculation example travel distance <10 km
A fulltime employee living 6 km from his place of work.
The employee may receive (214 x 2 x 6 km x € 0.19) / 12 = € 40.66 tax free per month.
The reduction of the gross salary with € 40.66 per month will give a net salary reduction of approximately € 23.66 per month (with a 42 percent tax rate) while NWO-I may pay € 40.66 net. The (fiscal) profit is therefore € 40.66 - € 23.66 = € 17.00 net per month.
Calculation example travel distance >10 km
A fulltime employee living 50 km from his place of work.
The employee may receive (214 x 2 x 50 km x € 0.19) : 12 = € 338.83 tax free per month.
Deducted: the employee will receive of NWO-I € 151.58 per month.
Remains: a fiscal tax deduction of (= returning gross salary) € 187.25 per month.
The reduction of the gross salary with € 187.25 per month will result in a net salary reduction of approximately € 109.00 per month (with a 42 percent tax rate) while NWO-I may pay € 187.25 as net addition to the travel allowance. The (fiscal) profit is therefore € 187.25 - € 109.00 = € 78.25 net per month.
Partaking does not have consequences for the pension accrual. The Tax Authority has decided that, if one may stop partaking in this scheme every year, the reduction of salary does not need to reduce the basis of pension accrual. The pension premiums due will therefore remain unchanged.
Bicycle for commuting
Limits have been set to the allowance for a bicycle for commuting. The maximum amount (gross salary and /or holiday hours) for a bicycle is € 750.00. If your bicycle is more expensive than this, then the surplus costs are to be paid by yourself. You may only partake in this scheme when you use the bicycle for commuting (this can also be part of the route) on more than half of the amount of working days. By signing the application form you declare that this is so. You may partake of this scheme once every five calendar years.
Possible reductions, as a result of a trade-in, we need to settle. In case you receive € 100.00 trade-in for your old bicycle on a new one costing € 750.00, we will process this regulation as if the new bicycle would have cost € 650.00.
The employer, depending on your choice, will pay the purchase amount to you with the first salary or will reduce your hours of leave with the amount of holiday hours, after a positive assessment and after receiving the bill and receipt.