Providing tax-free workplace facilities: what can an employer give tax-free in 2026?

Short answer: An employer can provide a significant portion of the workplace tax-free through three routes under the Dutch tax regulation for employee costs (WKR): targeted exemptions (such as a laptop required for work, and occupational health and safety provisions under the Dutch Working Conditions Act), nil valuations (such as an ergonomic desk for the home workspace), and the free allowance (2% of the first €400,000 of the payroll sum, 1.18% above that in 2026). Below, you’ll find exactly which route applies to which provision and what to watch out for.

Many employers unintentionally leave money on the table—or risk a tax reassessment—because they don’t apply the working conditions regulation correctly to workplace provisions. This article outlines the three categories: what is always tax-free, what counts toward the tax-free allowance, and what you must assess case by case.

What is the Dutch tax regulation for work-related expenses (WKR)?

The Work-Related Costs Regulation (WKR) is the tax framework within which employers can provide reimbursements, benefits, and provisions to employees tax-free – or at a favorable rate. The WKR includes three categories:

1. Targeted exemptions – always tax-free, do not count toward the free allowance. Think of a laptop that is essential for work, a travel expense reimbursement, or measures directly resulting from the Arbowet (occupational health and safety provisions).
2. Zero-rated items – the Dutch Tax Authority values these items at € 0, making them effectively tax-free. Examples related to the workplace include an ergonomic desk for the home office, coffee and tea at the office, work clothing, and safety shoes.
3. Free allowance – a percentage of the total taxable payroll that you can allocate at your discretion to tax-free expenses that do not fall under the first two categories (think of a health check, coaching, or a staff party).

If something does not qualify for a targeted exemption or nil valuation, you can reimburse it through the free allowance – as long as you stay within the ceiling.

How large is the free allowance in 2026?

For 2026, the same percentage applies as in 2025:

• 2% on the first €400,000 of the taxable payroll sum;
• 1.18% on the portion of the payroll sum above that threshold.

If you exceed the free allowance, you will pay 80% final tax on the excess amount. This adds up quickly, so it’s wise to calculate in advance how much space you have per year and which workplace provisions you want to include within that limit.

The necessity criterion: when can a laptop or phone be tax-free?

For tools and ICT equipment (laptops, phones, tablets, desktops), the so-called necessity criterion applies. This means that as the employer, you assess whether a provision is necessary for performing the job. If that is the case, you may provide it tax-free – even if the employee also uses the device privately. That private benefit does not count as income.

To meet the necessity criterion, three conditions must be satisfied:

1. The provision is necessary for the role. Document this, for example, by naming the role in the agreement where you provide the device.
2. The employer covers the costs. You may not pass these costs on to the employee, except for a personal contribution if someone consciously chooses a more expensive brand or model than necessary for the job.
3. The device remains the property of the business. Upon leaving the company or changing roles, the employee returns the device or pays its residual value.

Note: In case of doubt about necessity, the burden of proof in practice lies with the tax authorities, but a clearly substantiated policy (which roles require which equipment and why) prevents disputes during an audit.

Occupational Health and Safety Provisions: Often Overlooked, but Fully Exempt

Provisions directly resulting from obligations under the Working Conditions Act (Arbowet) fall under the targeted exemption for occupational health and safety (arbovoorzieningen) – and thus do not count toward the free allowance. A well-known example is the Periodic Occupational Health Examination (PAGO), which the Arbowet mandates employers to provide. Measures addressing health and safety risks in the workplace – such as a mandatory ergonomic assessment of a screen-based workstation – may also qualify for this exemption.

This is often an underutilized route for many employers: while an ergonomic desk can be arranged with minimal tax assessment, the OHS route for measures like a workplace assessment or an adjusted office chair based on medical advice is frequently overlooked.

Home Workspace: What Does It Include?

For the home workspace, the picture is mixed, and that makes it particularly error-prone:

• An ergonomic desk for the home office has been explicitly designated by the Dutch Tax Authority as a zero-rated item.
• ICT equipment (laptop, screen, keyboard) can be provided tax-free under the necessity criterion, provided the three conditions mentioned above are met.
• The home office allowance (a fixed amount per home working day for costs such as water, electricity, and heating) is a separate, targeted exemption with its own maximum amount – increased to €2.45 per day in 2026. You can provide either a home office allowance or a commuting allowance per day, but not both. Read more about this in our article on home office allowance and tax rules 2026.
• Other workplace arrangements (such as a good office chair, lighting, or a footrest) often fall under nihil assessment or the free allowance, depending on how the provision is granted (as ownership, loan, or reimbursement). Our complete home workspace checklist covers all aspects of an ergonomic home office.

Practical: how to avoid disputes during an audit

• Specify per provision under which category (targeted exemption, nil valuation, or free allowance) you provide it, and why.
• Link ICT provisions to the job role in the agreement or policy to ensure the necessity is clearly documented.
• Keep your free allowance administration up to date so you can see in time if you are approaching the 80% final withholding threshold.
• Use the occupational health and safety (OHS) route for mandatory ergonomic measures (such as a workplace assessment) – this does not count towards the free allowance. Wondering if your office meets the requirements in this area? Request a free workplace well-being scan.
• Ask for advice in case of doubt from your payroll tax specialist or accountant – this article provides general information and is not tailored tax advice.

Offyce is happy to help you think about the practical (and often tax-advantageous) design of workplaces, from sit-stand desks to complete acoustic solutions. Check out our services for more information.

Frequently asked questions

What is the Dutch tax regulation for employee benefits (WKR)?
The WKR is the tax framework that allows employers to provide tax-free reimbursements and benefits to employees through targeted exemptions, nihil assessments, and a free allowance over the payroll.

What is the necessity criterion?
This criterion means that the employer assesses whether a provision (such as a laptop or phone) is necessary for the role. If so, it may be provided tax-free, provided the employer covers the costs and the device remains the property of the business.

Can I give a laptop tax-free to an employee?
Yes, if the laptop is essential for performing the job, you as the employer cover the costs, and the laptop remains the property of the business. This falls under the necessity criterion within targeted exemptions.

Do occupational health and safety provisions count toward the free allowance?
No. Provisions directly resulting from the Arbowet, such as a mandatory Periodic Occupational Health Examination (PAGO) or a mandatory ergonomic assessment, fall under a targeted exemption and do not count toward the free allowance.

How large is the tax-free allowance in 2026?
2% on the first €400,000 of the taxable payroll sum, and 1.18% on the amount above that – the same as in 2025.

What Happens If I Exceed the Free Allowance?
On the amount exceeding the free allowance, you pay 80% final taxation. Proper administration per category prevents unpleasant surprises.

Sources

• Grant Thornton, WKR Exemptions: Changes Effective January 1, 2026
• MKB Servicedesk, How the tax exemption for work-related costs (WKR) works in 2026
• Running a Business with Employees, Company Phone for Employees: How Does That Work?

This article provides general information and is not tailored tax advice. In case of doubt, consult your payroll tax specialist or accountant.

Last updated on 24 October 2026 by Stijn Belmans