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Written by:
Bas Hollenberg


Allowance for costs of dual accommodation

It is permissible for an employer for a maximum term of two years to grant an employee an allowance in connection with the cost of dual accommodation. The allow­ance will become liable for tax if it continues to be made available when the two-year term has expired.

According to the Hague Court of Appeal the two-year term should be taken to apply to the place of work rather than to the job in question. As the State Secretary for Finance in response to the relevant ruling concurred, it was decided not to lodge a final appeal in cass­ation against the Court of Appeal’s ruling. The State Secretary for good measure pointed out that the above interpretation did not apply to the scenario of two successive jobs at a single place of work unless the jobs were independent of one another, as something of which the employer upon request would have to be able to present clear and convincing evidence.

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