Is your work clothing tax deductible?
COMPANY CLOTHING: TAX DEDUCTIBLE UNDER CERTAIN CONDITIONS
Work clothing is tax deductible if it meets one of the conditions set by the tax authorities:
- The work clothes is (almost) only suitable for work and not as casual wear. For example, a uniform or overalls.
- If the above does not apply, the work clothing must be provided with a logo with an area of at least 70 cm2. The logo must refer to your company.
In this article we will explain more about when your work clothing is or is not tax deductible.
HOW DOES THE TAX ADMINISTRATION DEFINE WORK CLOTHING?
First of all, it is important to determine whether your work clothing meets one of the tax authorities' definitions. Firstly, the Tax Authorities define work clothing as “clothing that is (almost) only suitable for wearing at work”. A lab coat is used as an example. You can also consider, for example, High Visibility work clothing. Overalls also fit within this definition of the Tax Authorities. These types of work clothing are therefore certainly tax deductible.
The second way in which the Tax Authorities define work clothing is as “clothing on which one or more image features of the employer are clearly visible”. A company logo is a good example of this. At Tricorp you can also have company clothing printed. The image features visible on the work clothing must have a minimum total surface area of 70 cm² per garment. Please note: if there is a sponsor's logo on your work clothing, the work clothing is only tax deductible if the name of the sponsor is also part of the name of your employer.
If your work clothing meets one of the two definitions, your work clothing is tax deductible.
PURCHASING WORK CLOTHING AS AN EMPLOYER
Are you an employer and do you buy work clothing for your employees? According to the Tax Authorities, in that case the work clothing is included in the employee's salary. You can only offer work clothing tax-free to your employees if the clothing is (almost) only worn at the workplace. In that case, any cleaning costs of the work clothing are also tax deductible.
WANT TO KNOW MORE?
Go to the website of the Tax Authorities for more information about tax rules regarding work clothing. Would you like to know more about Tricorp work clothing and the options for having it printed? Please contact our specialists.