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    Travel allowance during the pandemic

    The outgoing cabinet of the Dutch government has decided to once again extend the duration of the regulation allowing the payment of an untaxed fixed travel allowance to employees working from home during the pandemic. The regulation had already been extended several times before. It will now remain in effect until October 1, 2021. This means that for the next three months, employers may continue to pay an untaxed fixed travel allowance to employees even if the coronavirus pandemic has caused them to work from home more often and thus commute and travel less. The allowance may still be based on an employee’s commuting and business-related travel habits as before the coronavirus pandemic. The only condition is that the respective employee was also paid an untaxed fixed travel allowance before March 13, 2020.
    Since commuting happens less often now, the travel allowance can be used instead to cover additional expenses at home. However, most employers will probably already pay employees a homeworking allowance for this.

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