Dutch Budget Announcements for 2016

January 10, 2015

On 15 September, the day of the opening of the Dutch Parliament (Prinsjesdag), the Dutch Government announced its plans for the year 2016 and beyond.  They aim to reduce the tax burden on tax payers and to stimulate economic growth by encouraging employment and spending.

The issues most relevant to Dutch employers are as follows:

Tax bands

Proposed new rates for 2016

Up to EUR 19 922

36.5% (8.4 % tax + 28.15% national insurance)

EUR 19 922 – EUR 33 715

40.15% (12% tax + 28.15% national insurance)

EUR 33 715 – EUR 66 421

40.15% (tax only)

Over EUR 66 421

52% (tax only)

From 2017 the following will apply:

From 2018 rebates will also be available to employers hiring older people with social security benefits, disabled employees and the replacement of disabled employees. 

Who is impacted by these changes?

Individuals

Employers in the Netherlands

What should I do and what happens next?

These proposals will now be debated in parliament and any further changes should be confirmed by the end of the year. If you haven’t already reviewed your scheme for the payment of work-related costs, now is the time to do so.

Resources

2016 Budget Memorandum

Further Information

For further information or to discuss how we can assist with the issues raised, please contact Rina Driece on +31 10 224 6 424, Loyens & Loeff

Disclaimer

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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Disclaimer
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this newsletter. For further legal information click here.

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