Temporary 16% employer tax retained for 2014

Posted on 11th January, 2013

Estimated reading time 2 minutes

The 16% employer tax, introduced as a temporary measure for 2013, will apply again in  2014. (See our February 2013 article).

In 2014, employers will have to pay 16% tax on the 2013 taxable income from present employment (loon uit tegenwoordige dienstbetrekking) of each of their employees. The charge will be due on individual income in excess of Euro 150.000. Severance payments are regarded as income from former employment (loon uit vroegere dienstbetrekking) and can therefore be excluded from the taxable basis for the 16% tax.

A decision is awaited in respect of several court cases brought by employers questioning the legitimacy of this tax

For further information or to discuss the consequences of the above, please contact Hans van Ruiten on +31 10 224 6418 or Rina Driece on +31 10 224 6 424 at Loyens & Loeff Rotterdam.


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.

Circular 230 disclosure

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.


If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.