How does the work-related costs scheme work?
Short answer
Under the work-related costs scheme (werkkostenregeling, WKR), you may spend part of your wage bill tax-free on allowances and benefits for your staff: the free allowance (vrije ruimte). In 2026 it is 2% of the first €400,000 of the taxable wage bill and 1.18% above that. If you exceed it, you pay an 80% final levy on the excess.
Updated on · Reviewed by the tax advisers at Boekhoudvriend
Besides the free allowance, there are targeted exemptions, such as travel expenses up to €0.25 per kilometre, a working-from-home allowance and courses. These don't count towards the free allowance.
An example
- Your taxable wage bill is €150,000: your free allowance is €3,000
- You give Christmas hampers, a staff outing and a cycling allowance, together €2,500
- That falls within the free allowance, so you pay no extra tax
As a DGA
Even as a DGA employed by your own BV, your salary falls under the work-related costs scheme. With a customary salary (gebruikelijk loon) of €58,000, your free allowance is €1,160 a year.
Sources
This answer is general information, not personal advice. Your own situation may work out differently, so feel free to ask our team.