The Dutch government agreed on additional tax measures for 2014. One of the measures concerns a continuation of the employer’s levy for high wages for one more year. In 2013 this levy of 16% is applied for the first time on wages exceeding EUR 150,000 in 2012. Only the wage on which wage tax was levied must be taken into account for the determination. Logically, wage on which the Netherlands is not allowed to levy tax, based on for example tax treaties, should be disregarded.
Therefore we repeat our tips of last year.
Check whether your company has recognized all salary split situations that are effectively in place. After all, otherwise you may have to pay the employer’s levy unnecessarily.
Make sure that your payroll is correct and that no wage elements are included which do not belong there.
Last week we informed you that the retroactive effect of this levy is probably in violence with the ECHR. Consequently we advised to file objection against this levy. This most likely also applies to the employer’s levy in 2014, since it is already March, while the wages of January and February also must be taken into account for the employer’s levy in 2014.
These measures still have to be approved by the parliament.
If you have any questions, please do not hesitate to contact LIMES international.
