Posted on 29/11/2012 by E. Poerschke
Dutch “Crisis Tax” 2013
The Dutch government proposed several tax law changes for 2013 over the past few months, among which the so-called “crisis tax”. In order to generate income for the budgetary deficit the Dutch government introduced the crisis tax as a temporary measure, which will be effective as of 1 January 2013. This crisis tax is relevant for employers who have employees earning more than EUR 150.000 in the year 2012. According to the proposed 2013 legislation this temporary measure will only be applied in the year 2013.
The crisis tax is an additional final levy charge of 16%, payable by the employer in 2013 insofar as an employee´s income (including bonuses and benefits of shares/options) exceeds a threshold of EUR 150.000 in the year 2012.
For determining whether or not the €150.000 threshold is exceeded, in principle only income from current employment is decisive. Current employment income concerns structural wages as well as incidental remuneration (with the exception of e.g. severance payments).
The salary is not recalculated to a full year´s salary for employment that started/ended during the year, for determining if the threshold was exceeded. For instance, no final levy is due by the employer for an employee who started employment in May 2012 earning € 140.000 in 8 months subject to wage tax in the Netherlands.
Insofar as an employee´s 2012 income exceeds the EUR 150.000 threshold, it will in principle be considered as so-called “eindheffingsloon” on March 31st, 2013 on which the 16% final levy will need to be applied. In this respect employers and/or their payroll departments will be required to monitor if their employees exceed the €150.000 threshold in the year 2012, in order to correctly calculate and implement the 16% final levy in the payroll.