Can double housing costs be reimbursed tax free besides the 30% ruling?
Can an exceptional free reimbursement be given for double accommodation costs while maximum use is already being made of the 30% ruling?
No, as stated in the Explanation Memo on the Revision Decree of 20 December 2000 the costs of double accommodation have a predominantly extraterritorial character and for this reason are entered under the most specific entry for extraterritorial costs. The costs concerned therefore fall within the 30% rule of evidence.
This does not necessarily mean that such reimbursement is taxed. Should it be demonstrated that the total extraterritorial costs exceed 30% of the income so that no use need to be made of the rule of evidence, the actual costs of double accommodation can be reimbursed (without a limitation to two years).
This means that an employer can decide to reimburse the real extra territorial expenses (with proof provided by the employee) if these are higher than the tax free allowance if the 30% ruling is implemented. An employer is not obligated to reimburse the real expenses though and can decide to (always) use the 30% ruling instead.