Netherlands: Temporary tax relief measures in response to energy shock
Increases in travel allowances, reductions in vehicle tax
The Deputy Minister of Finance on May 21, 2026, published a policy decision dated May 17, 2026, providing temporary tax relief measures for the Netherlands and the Caribbean Netherlands (BES islands) in response to the energy shock.
The decision grants approvals, pending legislation, to:
- Retroactively (to January 1, 2026) increase the tax-free travel allowance, deductible travel expenses, and certain fixed deductions by €0.02 to €0.25/km
- Temporarily (from July 1, 2026, to December 31, 2026) reduce motor vehicle tax for delivery vans used by VAT entrepreneurs by 50% and for trucks to nil
- Retroactively (to January 1, 2026) increase the tax-free travel allowance, deductible travel expenses, and certain fixed deductions on the BES islands by USD 0.02 to USD 0.22/km.
For more information, contact a KPMG tax professional in the Netherlands:
Sandy Govers | govers.sandy@kpmg.com
Merijn Betjes | betjes.merijn@kpmg.com