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Doing business in the Netherlands 32then it can generally also be compensated untaxed.Certain forms of compensation and provisions arehowever only exempted up to a certain limit and insome instance standard amounts apply.The following are a number of ‘free’ compensationsand provisions.Travel expensesEmployers are entitled to pay their personneluntaxed compensation of € 0.19 (2014) per kilometrefor home-work travel and other work-relatedkilometres. This is irrespective of the means oftransport used. When using public transport, theemployer is entitled to choose between the completelyuntaxed compensation of the actual cost ofthe public transport and an untaxed compensationof € 0.19 per kilometre. Alternatively, the employermay provide the employee with a car (in caseof any private use of the car, a percentage of thecatalogue price must be added to the employee’staxable income).Coffee and refreshmentsExpenses for refreshments taken during workhours, such as coffee, tea, confectionary and fruitmay be provided untaxed. The employer is entitledto provide the above items free of tax without theneed for documentary proof to the value of € 2.75per week or € 0.55 a day (2014).MealsMeals may be provided untaxed provided that thebusiness character is of more than incidental interest.The value of a meal at a company canteen is setat the fixed amount of € 2.40 (2014) for a coffee,meal or breakfast and € 4.60 (2014) for a cookedmeal.Company productsEmployers are entitled to offer their employeesdiscounts or compensation for purchasing productsproduced or manufactured by the company.This can be done tax-free subject to the followingconditions:• These must be products that are unique to theindustry in which the company operates;• The maximum discount or compensation perproduct must be 20% (2014) of the marketvalue (including VAT) of the product;• The total value of the discount or compensationmay not exceed € 500 (2014) per calendar year.If in any calendar year the employee does notmake use of this facility, any remaining amountsmay be carried forward for a maximum of 2 calendaryears.This may also extend beyond the termination of theemployment contract due to disability or retirement.Study/trainingStudy and/or training expenses incurred by theemployee with a view to obtaining an income canbe compensated free of tax. This includes studyand course fees, the cost of study books and otherstudy materials. The following items are exceptionsto the above and are taxed: compensation for costsrelated to a work room or study space, includingits design and furnishing; compensation for foreigntravel in as far as the compensation exceeds € 0.19per kilometre.RelocationIf an employee is required to relocate for workpurposes, the employer is entitled to compensatethe employee free of tax for the moving costsfor his household goods. In addition the employermay give a tax-free moving expenses allowanceof a maximum of € 7,750 (2014). The condition ishowever that this is a move that is entirely relatedto the employment. This in any case applies if theemployer gives the allowance within 2 years afterthe employee accepts the new employment (orafter transfer) and the employee lives more than25 kilometres from his work and moves, as a resultof which the distance between his new home and hiswork is reduced by at least 60%.Courses, congresses, etc.Employers are entitled to compensate employeesfree of tax for the cost of courses, congresses, seminars,symposiums, excursions, study trips and soforth. This also covers the related travel (maximum€ 0.19 p/km) and accommodation. This must howeverinvolve professional expenses.Representation costsThe cost of receptions, festivities, gifts, promotionalgifts and entertainment, including the associatedtravel (maximum € 0.19 p/km) and accommodationcan also be free of tax compensated. This must howeverinvolve professional expenses.