Definition
Werkkostenregeling (WKR)
Dutch tax framework giving employers a 'free space' to grant tax-free benefits and rewards, including gift cards, to staff.
The Werkkostenregeling (WKR) gives Dutch employers a 'free space', a percentage of total taxable payroll, within which they can grant tax-free benefits to employees. Gift cards typically qualify, unless they fall under a specific exemption or a nil valuation.
Above the free space, the employer pays an 80% flat tax (eindheffing). Percentages and thresholds are set yearly by the Belastingdienst, always check current figures on the Netherlands country page or in the WKR estimator.
Gifts to external relations (clients/partners) do not fall under the WKR, separate deductibility rules apply. For employee gift cards in the Netherlands, the WKR is the primary framework.