this post was submitted on 20 Sep 2023
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Work Reform

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[–] [email protected] 2 points 1 year ago (1 children)

So you are saying it ought to be this way or it already is?

In the Netherlands it's quite common to receive €0.21 per km tax free (which doesn't cover the cost of the commute unless you ride a bicycle). I have a job that comes with an EV as a perk, including all charging expenses for company and private use both. I only have to pay for charging outside of the Netherlands. I do pay an extra tax for private use, but since it's an EV that's not a big amount at the moment. Some people receive a country wide public transit pass as a perk.

So if your claim is that there is no commute compensation anywhere in Europe, you're wrong. If you say it ought not to exist, well then I simply disagree.

[–] [email protected] 1 points 1 year ago (1 children)

As a government subsidy it's quite different from an employer benefit.

A public transport ticket as a perk is also very different. That's the same for all employees.the way k read the headline, it's about paying for the time spent commuting.

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago)

Commenting in your first remark first:

Yes it is different. But in this case it is both. The company pays that €0.21, which the tax office should normally see as an income for the employee. So the subsidy is in not taxing this income.

The public transit pass (which can be used privately) is not taxed at all.

Tl;dr for paragraph below: EV company cars that are driving privately get big tax benefits

Same goes for the car. Normally a lease car lease is quite expensive and if the employer pays for it, it is seen as an income for the employee IF the employee uses the car privately. This is taxed yearly as if you would have received 22% of the new value of the car per year. So a €100,000 car is taxed as if you've received €22,000 in extra income. Depending on what tax bracket you're in you pay quite a bit of tax on that. Now for EV's it depends on the year in which the car was registered. I have a car that cost €43,000 from 2020 which is taxed at 8%, so it is taxed only as if I made €3,440 more. This tax comes down to roughly €150 per month which is very roughly €250 less than I'd have paid for a gas car. So a subsidy in essence. This is why you see so many EVs in the Netherlands, though tax benefits are much lower these days.

Now for the part about paying for time rather than travel expenses. Yes, that's indeed far less common unfortunately. But such measures do lessen the burden somewhat.