As of 1 January 2022, companies that qualify as a withholding agent for Dutch wage tax and so-called collective administering organisations (in Dutch: collectieve beheersorganisaties) are obliged to notify the Dutch tax authorities of payments made to persons who are not on the payroll. This notification obligation is called the “exchange of information”.
Several exemptions are in place, such as for payments to qualifying volunteers, freelancers that invoice their services including VAT, artists and sportspersons. Note that different wage tax regulations already apply to artists and sportspersons.
If payments are being made to persons that do not meet the exceptions above, a notification obligation may exist. Notifications to the Dutch tax authorities have to be made on 31 January of each year. The notification should consist of the following information: Dutch social security number, date of birth, initials, surname, address information and country.
Employers are permitted to provide a tax-free travel allowance for employees. As of 1 January 2023, the maximum tax-free travel allowance is increased from EUR 0.19 to EUR 0.21 per kilometre. It is proposed to further increase to EUR 0.22 in 2024.
Employers can use the discretionary margin under the work-related cost rules scheme to provide and reimburse their employees with regard to tax-free items. For 2023, the discretionary margin for each employer is set at 3% of the first EUR 400,000 of the wage bill and 1.18% over the excess of EUR 400,000.
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