Practice area Salary Tax

Salary tax

For years now salary tax has constituted the largest source of revenues for the state budget in our country and consists of income tax, national and employee insurance premiums, and a contribution under the Care Insurance Act [Zorgverzekeringswet]. In all circumstances in which there is any (possible) question of a salary, salary tax automatically also plays a major role.

Because of the numerous situations in which salary tax plays a role, the area within which we provide advice and support is extensive. Each of our consultants is an all-round operator, while also devoting additional attention to and drawing on their experience of personal preferences. Thanks to our practical approach, we can work together with the management board, or the financial administration, human resources or payroll administration department. Together with you, we search for a solution which is the most appropriate for your organisation.

What questions concerning salary tax can you approach us about?

You may approach our salary tax team with any practical questions concerning anything from cross-border situations to work-related expenses schemes, from (leased) parking facilities to the appropriate valuation of on-site team days for tax purposes. We provide advice or support in a form which is the most appropriate for your organisation or modus operandi. The work which we normally carry out is as follows:

• the provision of advice and/or support in response to your daily questions on (cross-border) salary tax;
• assisting staff or directors in relation to cross-border work and providing employers and employees with peace of mind, which entails that, if required, we take on as much administrative work as possible (for example, when applying for the 30% facility or the issue of an A1 declaration, calculating a salary split or providing support for the purposes of incorporation into your payroll administration);
• providing advice on the tax aspects of your remuneration policy, which may help to reduce your labour costs, secure more favourable remuneration for tax purposes, motivate staff or attract new employees;
• the provision of advice, assistance and/or support when determining your tax strategy, the division of tax-related work between departments and drawing up a tax control framework;
• providing advice on the tax aspects of the contracts which you conclude with sole traders and the interface with employment;
• giving presentations on complex issues or potential solutions for practical problems both in the office and on-site;
• offering internal courses or upskilling;
• issuing knowledge memorandums amended to address the group or department for which they are intended (for example, the management board, or the finance, human resources or payroll administration department);
• the provision of assistance when the Tax and Customs Administration conducts audits and support for the purposes of objection and appeal proceedings.

Multidisciplinary approach

Dirkzwager is a full service firm offering legal and tax expertise in-house. Thanks to a unique combination of legal, notarial and tax consultancy practices, we are able to provide comprehensive assistance in relation to salary tax matters, irrespective of the sector or industry. Moreover, when it comes to international issues, we frequently collaborate with our international partners, who have offices throughout the world.

Recent cases

• We conducted a salary tax quick scan (duration: one day on our client’s premises), which entailed identifying the greatest risks pertaining to salary tax and drawing up a joint to do list containing points of action. These points of action were carried out by our client, on the one hand, and our own team, on the other, for the common purpose of ensuring that our client secured control over the most extensive areas of risk as soon as possible. In this case the reason for conducting a quick scan lay in the exponential growth which our client had experienced in recent years, giving rise to the question as to whether they still exercised sufficient control with regard to salary tax. Major risks were discovered in relation to expense allowances, the implementation of staff participating interests for tax purposes and benefits in kind in the case of the personal use of a vehicle.
• We wrote a memorandum and gave a presentation concerning new remote working, in respect of which we devoted special attention to the implications for staff and their employer, and the administrative expenses which are incurred as a result.
• We assisted a director who was temporarily assigned to Asia by their Dutch employer to work as a general manager there. The matters which were discussed are as follows (amongst others): determining their place of residence for tax purposes while seconded, the implications for tax purposes and social security, the consequences for pension accruals, gross-net calculations, administrative duties, the possibility of retaining deductible items for their own dwelling (by applying the expatriate scheme).
• We gave a presentation on ‘Global Mobility, Basic Tax and Social Security’ for one of our clients’ human resources department. The reason for this presentation was to welcome several new members of the human resources department and a preference to make time together for the further development of an internal global mobility procedure.

For whom do we work?

We work for all (medium-sized to large) employers, whether they are nationally or internationally active. At present, we serve national and international businesses active in the energy sector, manufacturers and healthcare institutions, and listed and insurance companies, amongst others, although we are also able to provide advice within any sector or industry (partly thanks to the extensive knowledge that we have within our firm).

What do our team leaders think are the best things about their work?

José Niers: ‘Expressing complex legislation and regulations in a language or some other form which our clients are able to use, this I feel is the best there is.’

René Sueters: ‘Working with people from different cultures and the difference in tax morality make the work interesting. The proper completion of an audit gives one a feeling of satisfaction. It is only when the client is relieved of concern and is satisfied, that I am as well.’

Esther Patty: ‘I think it is good to relieve anyone from stress who has to contend with the labyrinth of (cross-border) salary tax. With the aid of a clearly discernible overview of the consequences and – frequently unexpected – alternatives, I hope to lead a client to the best solution, so that they can continue to do their “real” work.’

Contact

If you would like more information or wish to make an appointment free of obligation, please feel free to contact us.