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
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