Situation until 2023
Until 2023, the provision of missing information afterwards didn’t prevent the applicability of the anonymous rate by the employer. It was therefore not possible to restore previous deduction(s) based on the anonymous rate. However, the anonymous employee could still recover any excess withheld in wage tax/national insurance contributions through his income tax return.
Situation as of 2023
As of 1 January 2023, there will be more lenient rules for correcting a previously applied anonymous rate. For example, consider a situation where the lack of the BSN isn’t entirely beyond the control of the employer and employee because the BSN was initially requested late. The employer then applies the anonymous rate until the employee provides the complete/accurate information. From then on, the employer may again apply the regular rate. In addition, as of 1 January 2023, the employer may restore the previous deduction of wage tax/ national insurance contributions at the anonymous rate to the extent that the deduction took place in the same year (in 2023). Restoration of an anonymous rate applied in 2022 is (unfortunately) not possible.
Concluding blog series
In a blog series of three blogs, we explained that, contrary to popular belief, a foreign national who has applied for asylum doesn’t need to have a BSN to be eligible for a work permit. We also explained that, in principle, the employer must apply the anonymous rate in the absence of a BSN. When the absence of the BSN is (entirely) beyond the control or influence of the employer and employee, the application of the anonymous rate can be avoided. Moreover, as of 1 January 2023, the possibilities for correcting a previously applied anonymous rate are broader. So, above all, don’t be put off by reports that working temporarily without a BSN isn’t possible.
If you have any questions about hiring employees without a BSN and/or about hiring employees coming from outside the EU/EEA, please feel free to contact us.