As of January 1, 2015 all Dutch employers fall under the obligatory work related costs scheme. This scheme provides to employees tax free expense reimbursements and allowances if the total yearly payments remains under 1.2% of the payroll costs of the company.
Some costs are reimbursement under the 1.2% facility, some are salary some are excluded from wage tax.
Costs made by the employer for the employee to keep up to date or improve the knowledge of the employee to perform his job, can be reimbursed tax free. Costs such as courses, congress visits, business literature, even the journal if used by the employees for business.
Travel costs made to visit the above mentioned events are tax free up to € 0,19 per KM or if public transport has been used, the actual costs can be reimbursed tax free. The costs that come with the registration with a professional organization, required to perform your duties, can be reimbursed tax free.
Sometimes studies are organized in Austria during the skiing season and then during the morning there courses to be followed, in the afternoon some good old skiing is being done and in the evening more bonding in the form of a nice dinner with beverages. Here the costs need to be split. The educational part in the form of courses can be reimbursed tax free. The travel costs up to € 0,19 per KM can be reimbursed tax free. The other costs, skiing and the evening program is regarded a salary. So you can decide to either put it on the salary spec, have it taxed at 108% in the end. Or use the 1.2% tax free facility or use the final wage tax (eindheffing) of 80% to process these costs.