As of January 1, it will be easier for employers to provide public transportation subscriptions to their employees, which can also be used privately, in terms of tax and administrative purposes. After the House of Representatives unanimously approved the bill, the Senate also accepted it yesterday. Everyone involved looks excited.
There are three ways an employer can provide public transportation to its employees: provision, reimbursement, or provision. The effect is different for the three methods (see graph below) and remains largely the same.
Tax benefits were also different but have now been harmonized. His main concern was that employers would have to prove to the tax office that the public transport card was used for business rather than private purposes.
If this was not the case, income tax had to be paid on this part. Monitoring and controlling this created an administrative burden that led many employers to avoid doing so. There was one exception to this rule: an annual public transport subscription. Such a subscription is expensive, and at least 10 percent of it had to be proven to be used for business purposes.
“As simple as possible”
Employers’ association AWVN is pleased with this change. “That’s what the employers wanted, and that’s what we worked for. The old system caused a high administrative burden. “If employers want to offer public transport to their employees, for example because of green goals, as a government you should do this.” Make this as simple as possible. It will be like this from now on.
Freek Bos from tour operator Rover is also enthusiastic: “This is a measure that makes public transport more attractive without costing anyone a euro.” The current system was so unattractive that I don’t know any employers who offered it. The tax authorities will not do anything about it. to lose.”
Additionally, Bos emphasizes that starting next year, employers will be required to report CO2 emissions during commuting. NS is also very excited: “All this contributes to people using public transport more.”
An employer can offer a public transportation pass in three ways:
The original idea came to Nico van Paridon, a strategist at the Amsterdam Transport District. “I learned how simple the car rental system is for employers in the Netherlands and how complex public transport is. “I thought this could be better.”
He then wrote an opinion piece on this issue in De Telegraaf, whereupon former D66 MPs Lisa van Ginneken and Romke de Jong presented a motion. It was assumed so.
Despite the positive reaction of the AWVN, the employers’ association does not expect a revolution at the moment. “This should be specified in mobility plans and discussed with unions and works councils. But it will definitely have an impact in the long run.”
In fact, a tour of major employers shows that there is no major revolution in sight, but developments are being “closely watched”.
It is worth noting that large employers are often at the forefront of such issues, and many have been working on so-called green employment conditions for some time. Because of their size and turnover, they can offer public transport subscriptions more easily than smaller employers.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
