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    Include IKV when filing your payroll tax return

    The ‘inkomstenverhouding’ or ‘IKV’ (which translates to ‘income relationship’ in English) is the basis of employee data. It is therefore pivotal that you include any information pertaining to this IKV properly when filing your payroll tax return, so that the information ends up correctly in the income register of the UWV. There are various (automatic) checks built in the payroll tax return process to ensure the correct information is included.

    The UWV (the Netherlands National Institute for Employees’ Insurance and Regulations) administers employee data (i.e. data on wages, earnings, taxes, etc.) per IKV in an income register. The IKV is a legal relationship between a withholding agent and a natural person registered in an organization’s or institute’s administration, on the basis of which that person receives wages and benefits. When filing your payroll tax return, you do not include employee data per employment relationship, but rather per IKV.


    Usually the IKV corresponds to the real, past or fictitious employment relationship, but this needn’t be the case. As soon as an employee and employer enter into an employment relationship, they also enter into an IKV. And when the employment relationship is terminated, the IKV is terminated as well. However, an employee and employer can enter into a new IKV during an existing employment relationship, while the old IKV is either terminated or continues to exist. It is therefore vital to correctly include the first and last date on which an IKV is valid when filing your payroll tax return. It does not matter whether or not work actually starts on the first day. With respect to the last day, this must be the actual last day on which an IKV is valid, and not a planned date.


    Every IKV gets a number. This number must be included in the payroll. The number is unique and may never be re-used at a later stage, unless the IKV in question concerns an ex-employee who stopped working for the organization more than seven years ago. If there are multiple IKVs between you and an employee, each IKV must have a different number. Usually, the payroll administration software you use will automatically assign a unique number to the IKV in question.
    In the payroll tax return, an IKV is characterized by the combination of the following three details:

    • the ‘loonheffingsnummer’ (payroll tax number) of your organization;
    • the ‘burgerservicenummer’ or ‘BSN’ (the personal identification number as stated on a Dutch passport or identity document) of the employee or, if the employee has no BSN, his/her employee number;
    • the IKV number.


    If you do not include a unique combination of a BSN and IKV number in the payroll tax return, you will either get an error message (in which case your payroll tax return will be declined) or receive a letter requesting you to correct your payroll tax return (if the return in question had already been accepted). In the payroll tax return, you must also include a code to identify the type of IKV which is concerned, for example:

    • code 11: wages or salary for a civil servant as regulated in the ‘Ambtenarenwet’ (Civil Servants Act);
    • code 17: wages or salary for a managing director & major shareholder of a limited liability company or corporation without employee insurance;
    • code 31: benefit under the ‘Ziektewet’ (Healthcare Act) or voluntary insurance for sick pay under the ‘Ziektewet’;
    • code 62: (statutory) severance pay.

    Remember that as of this year, you must always include a new code, code 53 (benefit in the context of an early retirement), when providing employees with a payment part of an Early Retirement Scheme.


    The same or a different IKV?

    Because of planned changes in two Acts, the ‘Besluit structuur uitvoeringsorganizatie werk en inkomen’ and ‘Dagloonbesluit werknemersverzekeringen’, you will have to use different IKVs for one employee more often as of 2022. The changes are most apparent in situations where you pay both a high and low WW-premium (unemployment insurance premium) for a single employee, for example when (s)he temporarily works more hours or when (s)he receives a benefit as part of additional birth leave. This year, such situations can still be filed under one IKV in the payroll tax return, where you fill out the respective amounts in the column reserved for an employee’s main income (‘rubriek hoofdinkomsten’ in Dutch). Starting next year, however, these situations must be filed under different IKVs. This is also already an option for this year.

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