Issuing OV-card easier for employer

December 12, 2023

As of Jan. 1, it will become fiscally and administratively easier for employers to give employees public transport cards that can also be used privately. After the House of Representatives unanimously approved the bill, yesterday the Senate also gave its approval. 

There are three ways an employer can offer public transportation to employees: make available, reimburse, or provide. In the first case, the employer purchases a card with a subscription. Upon leaving employment, the card must be returned. In the second case, the employee buys their own card and the employer reimburses the costs. And in the last case, the employee buys their own card, but the employer buys a subscription to it.

The tax benefits of these three options were different, but they have now been equalized. In the overview below, we show the difference between the old and the new situation.

1. Make ov-card available
   Tax implications old situation:
   With the ov annual pass, the card may be used (at least 10%) business and private, no payroll tax is charged on it. This does not apply to other travel subscriptions.
   Tax implications as of 2024:
   Card may be used for business and private use, no payroll tax will be charged. The distinction between different subscriptions will disappear.
2. Reimburse ov-card
   Tax implications old situation:
   Employer must prove to the Dutch tax office that the cost of business travel exceeds that of private use. If not, payroll tax must be paid on the difference.
   Tax implications as of 2024:
   Card may be used for business and private use, no payroll tax is charged on it.
3. Provide ov card
   Tax implications old situation:
   Employer must prove to the Dutch tax office that the cost of business travel exceeds that of private use. If not, payroll tax must be paid on the difference.
   Tax implications as of 2024:
   Card may be used for business and private use, no payroll tax is charged on it.