Staff party and the work costs scheme
Since 1 January 2015, the Work Costs Scheme (WKR) has been a reality.
What are the rules in 2025 and in the coming years for a staff party and the WKR?
Work-related costs scheme
The work costs scheme (WKR) offers companies a specific free space, which includes a certain percentage of the company's total fiscal salary, to offer tax-free benefits such as staff parties. This percentage is determined again each year.
Employee party work costs scheme 2025
For the year 2025, the free space under the WKR set at 2% for the first €400,000 of the wage bill, and 1.18% for the part of the salary that exceeds this limit. If the expenditure on untaxed benefits in kind exceeds this free space, the excess amount is taxed at 80%.
For most organizations, the allocated free space is sufficient to pay for untaxed benefits in kind. In addition, a staff party organized at a private location, such as an office, car park or factory hall, does not fall under the WKR. This means that such events do not have to be included in the calculation of the free space. Recently, we organized a multi-day staff festival at the client's own location. Bekijk de case.
Fiscally friendly
- All staff events (including the staff party) at the company, including an outdoor area or car park.
- Seminars and staff conferences (also at external locations).
- Commercial party (i.e. a guest list with customers or relations).
- Staff events with a predominantly business character*
* If you end a business staff day with a party, the tax authorities may ask for a 'cut', which means splitting the costs into a business and a festive part.
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Types of corporate parties and their tax impact
The type of corporate event that is organized can have various tax consequences. Here is an overview of some types of events and the implications under the Work Costs Scheme (WKR).
Staff party at an external location
If you organize a staff party that is primarily intended for entertainment and it takes place at an external location, the expenses for this will be deducted from the free space of the WKR. If these expenses fall within the available lump sum, they are untaxed. However, if the total expenditure exceeds the free space limit, a final levy of 80% must be paid on the excess.
Staff party at the work location
An exception to the WKR is the staff party held at the work location, such as a company restaurant, office floor, industrial hall or even the car park. These locations fall under your responsibility as an employer under the Working Conditions legislation, so their costs may fall outside the WKR.
Educational or substantive staff event
Meetings or events that are educational or substantive can be considered as business costs. Even if such a meeting ends with an informal get-together with food and drinks, there is a targeted exemption. It is crucial to clearly specify the business goals associated with the event.
No rights can be derived from all information on this page. For more information about the WKR, visit the website of the Tax authorities.
About effect group*
We've been designing and producing impactful events for over 25 years. From grand and compelling to substantive and personal. We make your event of today. For the fourth year in a row, Impact Group* can beste communicatie- en eventmarketingbureau name the Netherlands (source: MT1000).
Organizing an impactful staff party?
Simon is there for you and has answers to all your questions!
Mail Simon via simon@effectgroep.nl or give him a call 030 41 00 790.
