Payroll administration 2023

December 2022 | Author Mathijs Gersie, Erwin Duijveman & Sana Mouna

As of 2023, changes will apply in the payroll administration for your employees. In this newsletter, we will cover the 15 most relevant changes of the coming calendar year in terms of payroll and wage tax aspects.

In addition, we will also discuss recently implemented changes, relevant future legislation and regulations and a number of questions/relevant topics based on situations that arise in practice.

1. Travel expenses allowance

Due to the higher fuel prices, the government has brought forward the raise for the untaxed travel expenses allowance that was already included in the coalition agreement with a year. As of January 1, 2023, the untaxed travel expenses allowance will increase from €0.19 per kilometre to €0.21 per kilometre.

As of 2024, the untaxed travel expenses allowance will increase to €0.22 per kilometre. The increase in the untaxed travel expenses allowance will enable employers to contribute more to the travel expenses of employees. Please note that the employer is not obliged to increase the travel expenses allowance.

An employer can also grant a higher untaxed travel expenses allowance than the determined standard amount. This can be done, among others, by making use of the WKR budget. It is of importance that the employer designates the surplus as final levy component.

2. Increased working from home allowance

The untaxed working from home allowance will increase from €2.00 to €2.15 in 2023. It is of importance to carefully examine the current agreements between employers and employees. In cases of hybrid working, it is important to assess whether current agreements about fixed expense allowances or fixed travel expenses allowances need to be modified. Please note that, in addition to tax-related aspects, the employment law aspects will need to be taken into account and that there is an administrative obligation for the employer to clarify when an employee works at home or at the office.

For more information about the travel expenses allowance, working from home allowance or the WKR, please contact our payroll team or your payroll administration.

3. Impact cross-border work

Covid-19 has caused many employees world to start working hybridly. To limit the impact hereof in terms of taxes and social security, a relaxation in terms of social security currently applies with regard to cross-border workers (Belgium and Germany). For cross-border workers from Belgium and Germany, working from home will not influence the social security position of the employee until at least 1 July 2023. This is not the case for the tax position of Belgian and German employees. The relaxation for this has already lapsed on 1 July 2022 and has not been renewed.

Currently, a structural solution is being explored for cross-border work and its impact in terms of taxes and social security. We recommend inspecting the tax and social security position of international employees for 2022 and, looking ahead, for 2023, given that the consequences may vary per country.

Our payroll team would be happy to put you in touch with one of our specialised experts about this.

4. Work where you want and policy

Although the ‘work where you want’ bill has not yet come into force, it is important to already start thinking about the desired policy and the possible consequences the law may have in practice. For more information about this bill, we would like to refer you to our website.

5. Birth and parental leave

For an elaborate update with respect to birth and parental leave, we would also like to refer you to our website, the input on the subject of birth and parental leave has been provided by our legal colleagues.

Erwin Duijveman


Erwin has been a wage tax adviser at PKF Wallast since 2020 and specializes in employment tax & payroll advice.

Mathijs Gersie


Mathijs has been a wage tax adviser at PKF Wallast since 2021 and specializes in (international) employment tax.

6. Utilising the discretionary scope of the work-related expenses scheme [Dutch: vrije ruimte Werkkostenregeling/WKR]

To reduce the expenses for entrepreneurs small and medium-sized enterprises, the budget of the work-related costs scheme (WKR) will be expanded. Through the WKR discretionary scope, it is possible to award allowances, benefits and provisions to employees untaxed if no specific exemption applies.

In 2022, the discretionary scope is 1.7% of the wage bill for tax purposes up to € 400,000. For the surplus of the wage bill for tax purposes, the discretionary scope is 1.18%. In 2023, the discretionary scope will be 3% of the wage bill for tax purposes up to € 400,000 and 1.18% for the surplus. It is important to review before the end of the year how much of the discretionary scope is left and whether it has possibly been exceeded. In case it has been exceeded, the employer will owe a final tax levy of 80%. In that case, we recommend contacting our payroll team or wage tax advisors.

Lastly, PKF Wallast has developed a specific WKR tool that allows us to offer you even better advice/take more work off your hands with regard to your WKR administration. Please feel free to ask our payroll team for the possibilities.

7. Concerns regarding the 30%-facility

Under specific circumstances, employees recruited from outside the Netherlands are eligible for the 30%-facility, through which they can in principle receive 30% of their salary untaxed for a maximum period of five years.

WNT-norm [Dutch: Standards for Remuneration Act]

As of January 1, 2024, the 30%-facility will be limited to at most the WNT-norm, which most will know as the Balkenendenorm (in 2022: €216,000 and in 2023 it will probably be: €223,000). Any salary exceeding the Balkenendenorm will then be (normally) taxed in full. Should the actual extraterritorial expenses be higher than the maximum untaxed allowance based on the 30%-facility, it is an option to have this tie in with the compensation of the actual extraterritorial expenses.

Transitional arrangement

Within this modification, a transitional arrangement has also been introduced. If the 30-%-facility is processed in the payroll administration during the final salary time period of 2022, the capping measure will not be applied as of January 1, 2024, but as of January 1, 2026.

If the 30%-facility will be processed as of 2023, the capping will apply as of January 1, 2024.

 Making a choice

Starting January 1, 2023, employers and employees will also have to make a choice whether they want to follow the 30%-facility or reimburse the actual expenses. This choice will then apply for the entire calendar year and will need to be made again for each calendar year for the duration of the decision.

 Because the 30%-facility will be requested in the first few months of the employment of the recruited employee, the choice is not required in the first 4 months. Next, the final choice for the corresponding calendar year will be made.

Please note that the limitation to the 30%-facility can be a reason for a possible candidate with a top salary to enter into employment in 2022, because this would allow the application of the transitional arrangement and the employee would only be faced with the limitation of the 30%-facility at a later stage.

8. Fiscal addition to income for company cars

From 2023 on, the fiscal addition to income percentage for the private use of a new electric company car will be 16% of the fiscal list price up to € 30,000. For the surplus, the default addition to income percentage of 22% will apply.

For the sake of completeness, we would also like to mention that hydrogen-fuelled cars have an addition to income percentage of 16% of the full fiscal list price.

9. Company bicycle – reference to the possibilities

Since January 1, 2020, a simplification for the company bicycle has applied. As with the company car, a fixed fiscal addition to income applies. The addition to income percentage is 7% of the bicycle’s recommend retail price. It is possible to make the company bicycle available next to the company car. The term bicycle encompasses many types, such as an electric bicycle, carrier bicycle etc. Making a bicycle available could therefore be an interesting addition to the secondary employment conditions for employees.

In addition to making a bicycle available, it is also possible compensate a bicycle via the cafeteria plan. The compensation will in principle qualify as taxed salary. It is possible, however, to designate the compensation as a final levy component and include it in the discretionary scope of the WKR.

10. Efficiency margin for the majority shareholder (DGA)

Persons who perform work for a company in which they or their partner for tax purposes hold(s) substantial interest, need to consider a customary salary. In many cases, the amount of the customary salary can currently be assumed to be 75% of the salary of the closest equivalent employment (efficiency margin). As of January 1, 2023, the efficiency margin will be adjusted, which means substantial interest holders will need to consider a higher customary salary and pay higher taxes in box 1.

It is important to thoroughly discuss the amount of your customary salary with PKF Wallast. The adjustment of the efficiency margin as of January 1, 2023 can require an increase in the customary salary. This does not always have to be the case, if sound substantiation can be found, which would make it possible to retain the current salary or consider a lower customary salary.

Agreements with the Dutch Tax Administration

Derivations from any agreements with the Dutch Tax Administration regarding the customary salary can no longer be relied on. For this reason, we recommend to review the current agreements to see whether they are in line with the modifications. If this is not the case, new agreements regarding the amount of the customary salary will need to be made.

11. Contractors update (Wet-DBA)

On July 5, 2022, minister Van Gennip of Social Affairs and Employment submitted her letter ‘Hoofdlijnenbrief Arbeidsmarkt’ (Outline Letter Labour Market) to the House of Representatives. In this letter, the government indicates how they want to make the labour market future-proof again. One of the five main themes in the letter concerns the clarification of the qualification of employment relationships. A follow-up to this letter is expected in December 2022, which will offer more clarity regarding the repeal of the enforcement moratorium. Currently, the government has indicated that the enforcement moratorium will at any rate be repealed as of January 1, 2025 or possibly sooner. If the enforcement moratorium expires, the Dutch Tax Administration will intensify the audits. Please note that this does not mean that the Dutch Tax Administration does not currently audit this. It is important to keep abreast of developments on this subject and involve PKF Wallast where necessary, so that we can review together whether any changes will need to be made.

Next to the letter, an important ruling in the Deliveroo case is expected in December, which could have a (large) impact on current practice. We will of course share an update when more is made public.

12. Information reporting obligation

Since January 1, 2022, a new information reporting obligation applies for companies with the duty to keep an administration. You are to submit the reporting in this framework to the Dutch Tax Administration between January 1, 2023 and December 31, 2023. Should you have any questions about this obligation, we would of course be happy to assist you.

 13. Change in Return to Work Fund premium [Dutch: Werkhervattingskas/Whk]

Next to the WIA/WAO basic premium [Dutch: Work and Income (Capacity for Work) Act/Invalidity Insurance Act], employers also owe a differentiated Return to Work Fund premium. For the premium amount, a distinction is made between small, medium-sized and large employers. In order to properly prepare your payroll team for processing in 2023, we require the correct data concerning your Whk contributions.

We request you to send the decisions stating the contribution percentages for 2023 to your contact person in the payroll team in December 2022. Thank you in advance. Based on the decisions, we will of course prepare the payroll administration for 2023.

14. Capped income assessable for social insurance

In 2022, the capped income assessable for social insurance premium is € 59,706. In 2023, the income for social insurance premiums will be capped at € 66,956. This increase is related to the increase in the statutory minimum wage. The substantial increase also means that the employer expenses will increase as of 2023. In case multiple reservations for employer’s contributions are made within the payroll administration, it can be of importance to take this into account and prevent future surprises.

15. Employee carbon exhaust registration

As of July 1, 2023, employers with 100 or more employees will be obliged to annually report about their travelling employees carbon emission. With this, the Ministry of Infrastructure and Water Management wants to monitor whether it is possible to achieve the expected carbon reduction target in 2030. Reporting these data will cause a considerable administrative burden for the employer. It is important to assess this with your payroll administration in early 2023, so it can be reviewed how this can be administrated correctly.

If currently less than 100 people are employed, but expectations are that this number will be reached during the course of the year, be sure to take measures as well and make the right preparations.


Lastly, we would like to say that PKF Wallast, the payroll team, wage tax and legal teams are here for you to assess the changes mentioned above, offer guidance in the arrangements and answer your questions.

We wish you happy holidays and hope to see you soon!

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