Gift cards and the work-related costs scheme (WKR)

The WKR determines whether, and up to what amount, that gift card stays tax-free for your staff member. Below you'll find how the scheme works and what to watch for.

What is the work-related costs scheme?

The work-related costs scheme is the tax rule that lets employers give staff tax-free allowances and benefits. Within this scheme, you reserve part of the payroll for things like a gift card, a lunch or a staff party. As long as you stay within that budget, the employee pays no tax on the gift.

Does a gift card fall under the WKR?

Yes, a gift card to staff falls under the WKR. There's no separate targeted exemption for a gift card, so its value comes out of the free allowance. That applies to a birthday gift just as much as to a Christmas present or a token of appreciation after a successful project.

Free allowance in 2025 and 2026

The free allowance in 2025 and 2026 is 2% of the taxable payroll up to €400,000, and 1.18% over the amount above that. With a payroll of, say, €300,000, the free allowance is therefore €6,000.00 per year. Gift cards to staff count towards that total, together with other tax-free benefits such as a Christmas package or a staff party.

Final levy on excess

Exceed the free allowance, and you pay an 80% final levy as the employer on the amount above the threshold. This levy is paid by the employer, not the employee. So check at year-end how much free allowance remains before handing out a gift card.

Conditions for a gift card to fall within the WKR

A gift card only counts as a tax-free benefit if it meets a number of conditions.

• The voucher isn't redeemable for cash.

• The employer designates the benefit as final-levy wages within the free allowance.

• The benefit is recorded in the payroll administration.

If the gift card doesn't meet these conditions, the Dutch Tax Administration treats it as ordinary wages, and the employee pays payroll tax on it.

Gift card or cash: the difference within the WKR

A gift card and a cash amount are treated differently for tax purposes. Cash vouchers and prepaid credit cards that can be freely spent are treated by the Dutch Tax Administration as wages in cash and are therefore always taxed, even within the free allowance. A gift card that can only be redeemed at shops or webshops, and not for cash, can fall within the free allowance. That difference makes a gift card a more practical choice than a cash amount on the payslip for many employers.

Keeping track of your gift cards

Anyone giving out gift cards multiple times a year, to staff with birthdays or hitting a target, quickly loses track. The Cadeauservice portal keeps every activation together, with date and amount, so you can see what you've already handed out this year. That overview helps you keep an eye on your free allowance, though the final calculation and WKR assessment remains a matter for your own administration or adviser.