A company outing is an investment in your team, but it is also an expense. Those who are not familiar with the work-related costs scheme run the risk of paying unnecessary tax on something that could have easily been arranged tax-free. In this article, you will read how the work-related costs scheme (WKR) works, what a company outing means within it, and what you should look out for when organizing a team outing.

Please note: this article provides a general explanation of the rules as they apply in 2026. Tax rules change annually and the exact situation may differ per organization. For a definitive answer, always consult your bookkeeper, accountant, or the Tax and Customs Administration (Belastingdienst).

What is the work-related costs scheme and what does it have to do with a company outing?

The work-related costs scheme is the tax scheme with which employers can provide tax-free allowances and provisions to employees, up to a certain amount: the discretionary scope (vrije ruimte). This discretionary scope is a percentage of your organization's total taxable wage bill.

In 2026, the discretionary scope is 2% on the first €400,000 of the taxable wage bill, and 1.18% on the amount above that. If your allowances and provisions remain within that scope, you as an employer do not pay any extra tax on them. If you exceed it, you pay a final levy of 80% on the amount that exceeds the discretionary scope, borne by the employer, not the employee.

A company outing falls, depending on its setup, within this discretionary scope. This makes the WKR relevant as soon as you plan a team outing: it partly determines how much scope you have left for other allowances that year, such as a Christmas package or a home office allowance. 

What falls under the work-related costs scheme?

The costs of a company outing usually fall under the discretionary scope of the WKR. Think of the costs of the activity itself, food and drinks, transport to the location, and any overnight stays. As an employer, you designate these costs as final levy wages, and they count towards the discretionary scope you have available that year.

Important to know: the so-called customary test (gebruikelijkheidstoets) plays a role here. Allowances and provisions may not deviate by more than 30% from what is customary within your sector. An exceptionally expensive outing can therefore raise questions with the Tax and Customs Administration.

If you choose to organize the company outing at your own company location, this may fall under a different scheme than when you book an external location. That distinction is exactly why it is smart to coordinate this with your bookkeeper beforehand, rather than afterwards.

What does not fall under the work-related costs scheme?

Not everything related to a company outing has to fall within the discretionary scope. Some costs fall under the so-called targeted exemptions (gerichte vrijstellingen), for which a separate, established amount applies that does not affect your discretionary scope. Travel costs to the location of the outing, for example, can fall under this exemption up to a set amount per kilometer, instead of under the general discretionary scope.

In addition, there are zero valuations (nihilwaarderingen): facilities at the workplace itself that count for €0. This is relevant if you organize an activity at your own office location instead of externally, or when part of the team participates online or hybrid.

The exact distinction between what does and does not fall under the discretionary scope depends on the precise setup of the outing. This is typically the kind of question that a bookkeeper or accountant can best help you with in practice, as the classification can differ per situation.

Are company outings mandatory for employees, and does it count as working hours?

Whether a company outing is mandatory and whether it counts as working hours is not a tax question, but an employment law question. This depends on the agreements within your organization, for example as laid down in an employment contract or staff handbook. For a definitive answer, consult your HR department, an employment lawyer, or the applicable collective labor agreement (CAO).

In practice, we see that a company outing is better received, and therefore contributes more to team bonding, when employees feel invited rather than obligated. That is a consideration that stands apart from the tax or legal side, but is certainly worth taking into account when organizing.

How to keep control of the discretionary scope when organizing a company outing

A few practical steps will help prevent surprises. Start by determining your total discretionary scope for that year, based on your organization's taxable wage bill. Next, keep track of which allowances and provisions you have already written off within that scope throughout the year, so you know how much scope is left at the moment you plan a company outing.

Discuss the setup of the outing, including location, activity, and costs per employee, beforehand with your bookkeeper or accountant. This way, you know in advance whether the costs fall within the discretionary scope, under a targeted exemption, or whether you need to take a final levy into account. Are you organizing an outing for a larger department or the entire company? Then it is extra important to calculate this beforehand, especially considering the scale you can see in our article about teambuilding for large groups.

Do you want to organize a team outing that matches your team, regardless of the tax side? Check out the teambuilding activities of The Box Company or contact us for advice on setting up your company outing.

Frequently asked questions about WKR and company outings

What falls under the work-related costs scheme (WKR)?

The costs of a company outing, such as the activity itself, food and drinks, transport, and any overnight stays, usually fall under the discretionary scope of the WKR. In 2026, this discretionary scope is 2% on the first €400,000 of the taxable wage bill and 1.18% on the excess.

What does not fall under the work-related costs scheme?

Some costs fall under targeted exemptions (such as travel expenses up to a set amount per kilometer) or zero valuations (facilities at the workplace itself), and therefore do not count towards the discretionary scope. The exact distinction depends on how the outing is set up.

What is exchange (uitruil) in the work-related costs scheme?

Exchange is the swapping of (a part of) an employee's gross salary for a tax-free allowance or provision within the WKR. This is a specific construction where the exact conditions differ per situation. Always seek advice on this from your bookkeeper or accountant.