Is It Possible To Apply Targeted Exemptions Under The Work-related Expenses Scheme (such As The 30% Facility) Without Designation As A Final Levy Component?

In order to apply targeted exemptions under the work-related expenses scheme (WKR), it is required that the employer designates the relevant payments and provisions as wages for final levy purposes. A recent amendment to the Payroll Taxes Manual raises the question of whether designation is still required in order to apply for a targeted exemption.

However, this seems to contrast with the much more formal approach of the courts and the state secretary, as recently evidenced by rulings from the Court of Appeal of 's-Hertogenbosch and the Court of Appeal of The Hague, as well as a report from the Petitions and Citizens' Initiatives Committee (the Committee). We will explain this below.