Clifford Chance
Unexpected tax hits for employers on certain employee benefits
17 September 2014
An employer may face an additional (and often unexpected) tax burden when implementing the so-called Labour Costs Scheme (Werkkostenregeling) (mandatory with effect from 1 January 2015!), severance payments or early retirement schemes. Such additional taxes are levied by way of a final wage tax charge (eindheffing), which cannot be withhold from the payout to the relevant employees. This briefing provides guidance on the situations in which this issue may arise.
