The heart of the WKR is the free margin (vrije ruimte). This is the amount you, as the employer, can spend tax-free on allowances and benefits for your staff. In 2025 and 2026 the percentages are:

2% on the first €400,000 of the taxable wage bill: for a company with a wage bill of €400,000 that is €8,000 of free margin.

1.18% on the amount above €400,000: for a company with a wage bill of €2 million that adds another €18,880, for a total of €26,880.

Anything you spend above this free margin is taxed at a final rate of 80%. That is a steep surcharge. Spend €10,000 too much? You pay €8,000 in extra tax.

This is where it gets interesting for events. The Dutch Tax Office (Belastingdienst) makes a crucial distinction between events at the workplace and events at an external venue.

At the workplace (targeted exemption): staff events at your own workplace fall under the targeted exemptions. That means these costs do not count against your free margin. So you can organise an event on your own premises without it eating into your WKR budget.

At an external venue (free margin): are you organising a staff event at an external venue? Then the costs do count against the WKR free margin. That applies to venue hire, catering, entertainment and any other event-related costs.

The difference can be enormous. A staff party of €50,000 at an external venue counts in full against your free margin. The same party on your own grounds is fully exempt. If you exceed the free margin, you save up to 80% of €50,000 = €40,000 on the final levy.

Let us make it concrete. A company with 200 employees and a wage bill of €10 million organises a staff party of €60,000.

Free margin calculation: 2% × €400,000 = €8,000 + 1.18% × €9,600,000 = €113,280. Total free margin: €121,280.

Scenario 1: Party at an external venue. The €60,000 counts against the free margin. If the company has already spent €80,000 on other allowances, the free margin is nearly used up. The extra €60,000 can push it over, with an 80% final levy as a result.

Scenario 2: Party on your own premises. The €60,000 falls under the targeted exemption and does not count against the free margin. The company potentially saves up to €48,000 on the final levy.

1. Choose your own premises. The most impactful saving. Organise your event at your own workplace and the costs are fully exempt.

2. Align with your financial adviser. Discuss your event plans with your bookkeeper or tax adviser. They can calculate how much free margin is still available.

3. Spread your events smartly across the year. You get one free margin per calendar year. By planning events smartly, you avoid using up your entire budget in one year.

4. Combine internal and external venues. Start your event at the workplace (exempt) and arrange an optional follow-on at an external venue.

5. Document everything. Keep clean administration of every event cost. If the Belastingdienst audits, you must be able to show which costs fall under the targeted exemption.

At Live Impact we always advise our clients on the tax aspects of their event. Not because we are tax advisers, but because the venue choice and event format directly influence the WKR.

We have plenty of experience organising events at the client's own premises. We know how to transform an office, factory or company site into a professional event venue. That way you benefit from the tax advantages and still get an event that lands.

On top of that, we always work with a transparent budget, so you know exactly which costs sit where. No surprises, just a clear overview.

The WKR offers opportunities for companies that organise smartly. At Live Impact we help you seize those opportunities without compromising on the quality of your event.

Call 085 401 40 14, email hello@live-impact.nl or fill in our online brief. Then we will discuss how to organise something both tax-smart and unforgettable.

Seriously fun.