Work-Related Expense Allowance

The work-related expenses scheme determines how allowances and benefits in kind are treated for tax purposes. In international contexts, this directly impacts tax and global mobility, for example in the case of expatriates, international assignments, and the cross-border deployment of employees.

What seems straightforward at the national level becomes more complex in an international context. Different compensation structures, international factors, and varying employment terms require careful planning and justification.

Proper application of the WKR prevents confusion and ensures that reimbursements are processed correctly for tax purposes.

Frequently Asked Questions

• Which expenses can be reimbursed tax-free?

• How do we ensure sufficient space and proper signage?

• How do international allowances align with the WKR?

• How do we handle expat allowances and relocation packages?

• How do we provide the tax authorities with a solid justification?

What Nassau Can Do

We help organizations understand and implement the WKR within the areas of tax and global mobility. In doing so, we ensure consistency between policy, payroll, and practice.

Our support includes, among other things:

• Review of reimbursements and benefits in kind

• Implementation and optimization of the WKR

• justification and documentation of the decisions made

• alignment with international circumstances and expat policies

• support with implementation and practical application

This results in an approach that is not only fiscally sound but also practical within the organization.