As more international companies expand into the Dutch market, one of the common questions we hear involves employee reimbursements, especially for food and beverages, mobile phone use, and travel expenses. Understanding how these costs are treated under the Dutch WKR (Work Related Cost Scheme) is essential for any business that wants to stay compliant and support its staff effectively.

The WKR is the Dutch framework that governs how employers can provide allowances, reimbursements, and benefits to employees without incurring additional taxes. Within this framework, companies are given a tax-free budget known as the ‘vrije ruimte’, which is a percentage of their total taxable wage bill. In 2025, this is set at 2% for the first €400,000 of the wage bill and 1.18% for any amount exceeding that. Reimbursements that fall within this space can be given without tax consequences. However, if you exceed the available vrije ruimte, you may face an additional tax burden. Fortunately, many common business expenses can be structured to fall outside this space entirely.

Take food and beverage reimbursements, for example. If meals are provided at the workplace, they may need to be accounted for under the WKR. However, when meals are provided during business trips, overtime hours, or on-call shifts, they are often considered direct business expenses. These may be eligible for specific exemptions and therefore do not count toward the vrije ruimte. The key is in how the expense is justified and documented.

The same principle applies to mobile phone usage. If a phone or subscription is deemed necessary for the employee’s role, whether for client communication, remote work, or field operations, it can typically be covered by the employer without affecting the vrije ruimte. What matters here is that the necessity is clear and supported by internal policy or contractual agreements. If a phone is provided as a general benefit rather than for work purposes, it may instead count against the available WKR budget.

Travel reimbursements are another area of frequent discussion. Employees who use their own vehicles for business-related travel can be reimbursed per kilometer (capped at 0,23ct), while public transportation expenses can also be covered by the employer. In both cases, these costs often fall under designated exemptions.

For foreign companies entering the Dutch market, navigating these rules can initially seem complex. However, with the right structures and documentation in place, it’s entirely possible to manage reimbursements in a way that supports your team and complies with local regulations.

At Primebridge, we support international businesses with compliant and scalable HR operations. Our HR & Payroll Services ensure that you can reimburse employees for essential costs like food, phones, and travel while staying in full alignment with Dutch law.