MPs vote down bid to save tax-free staff discounts

The Tweede Kamer rejected an amendment to the tax plan (belastingplan) on Thursday evening. The amendment would have kept the scheme that lets employers give staff a tax-free discount (personeelskorting), 25 trade associations said.

The cabinet wants to scrap, from next year, the discount that employers may give their staff tax-free. With the amendment defeated, that plan remains in the tax plan.

Under the current rules, employers can give each member of staff up to €500 a year in tax-free discount on the products they make or sell themselves. The discount may be no more than 20% on each purchase. Once the scheme is scrapped, discounts of that kind would no longer be exempt from tax.

Why it matters

• Under the cabinet's plan, employers will no longer be able to give staff a tax-free discount from next year.
• The 25 associations say the change affects hundreds of thousands of employees and their employers.

The 25 associations cover retail, travel, culture, hospitality and services. They had campaigned hard against scrapping the scheme and say they are very disappointed that it is going.

In a joint statement, they said the decision will cause "a big disappointment for hundreds of thousands of employees and their employers, who want to keep this important and valued employment benefit".

The organisations said they will keep talking to politicians and the cabinet to look for a solution.