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    When is final levy allowed, or even obligatory?

    On certain forms of wages paying statutory payroll taxes is allowed, or even obligatory, in the form of a final levy. These taxes are not withheld from your employee’s wages, but will be charged to you. What are the wage components that a final levy must or may be applied to and what is the relevant tax rate?

    The possibility (and sometimes the obligation) of a final levy only exists for statutory payroll taxes. There is no final levy for the employee insurance contributions and income-related contributions under the Healthcare Insurance Act (ZVW).

    Therefore, for the wage components subject to a final levy, no employee insurance contributions are due and no income-related contributions under the ZVW have to be withheld and paid. Wages involved in the final levy by means of an additional tax assessment are excepted from this rule (see below).

    When to apply final levy

    For the following types of wages the final levy is allowed, or obligatory:

    • additional tax assessments;
    • exceeding the tax-free margin of WKR (work-related expenses scheme);
    • providing others than your employees with gifts;
    • goods and services for promotional purposes and benefits from saving systems;
    • temporary problems of a serious nature;
    • continuous alternate use of delivery vans;
    • early retirement schemes (RVU);
    • excessive severance payments;
    • benefits under public law: the final levy for benefits under public law is only imposed by a limited number of government institutions. For that reason, we will not deal with this in further detail.

    Below we will go into the different forms of final levy.


    No wages for IB purposes

    Wages that you apply final levy to are no longer your employee’s wages. Therefore they don’t count as your employee’s aggregate income for income tax (IB) purposes, either. The statutory payroll taxes you pay on these wages cannot be offset against income tax and national insurance contributions (IB/PVV) by your employee.

    Additional tax assessment

    Having received an additional tax assessment, you will have to take over the employees’ wage tax and national insurance contributions. Besides, if the Belastingdienst (Dutch Revenue Service) imposes an additional tax assessment, you will also have to pay the employee insurance and ZVW contributions.

    Normally, they are not payable with the final levy. Therefore, the additional tax assessment is always based on the most recent tax table rate. Only if the amount due would have been the employee’s wages under normal circumstance, you may request the Belastingdienst to impose an additional assessment that you can recover from the employee.

    The Belastingdienst will attach certain conditions to this, for example that you have but a small number of employees. Or if there are unintended financials benefits for one or more employees, such as rate benefits of higher subsidies.

    There is one exception: if you should have or could have included the salary component itself in the final levy, the employee insurance and ZVW contributions – just like with other forms of final levy – are not due.

    Work-related expenses scheme

    Reimbursements and provisions cannot unlimitedly be allocated to the tax-free margin of the WKR without tax implications. In 2021, you have a 1.7% tax-free margin on the first € 400,000 of your payroll cost for tax purposes. However, the margin has temporarily been raised to 3% in connection with corona. You have 1.18% on the excess. If you exceed your tax-free margin, the excess will be subject to an – obligatory – final levy of 80%.


    Sometimes employees receive gifts from the company, such as a Christmas hamper. If, at the same time and under the same circumstances, you would like to present your business relations with the same gift, you may opt to charge the taxes on the gift to yourself – which would be the logical thing to do.

    Remember to inform the recipient if you charge this voluntary final levy to yourself. If the value of the gift is no more than € 136, the final levy on the provision will be 45%. If the value is higher, you will owe a 75% final levy on the total value.


    You can also apply the final levy on the market value of goods and services for promotional purposes and benefits from loyalty saving systems (on paper or digitally), which you give to others than  your employees.

    The value of benefits from loyalty saving systems is the average market value of goods and services provided when loyalty points are cashed. You will have to inform the recipient of the goods and services that you will apply the final levy. In addition, you will have to record the identity of the recipient of the goods, the services and the benefit from the loyalty saving systems.

    If the value of the goods, services or benefits from loyalty saving systems does not exceed € 136, the final levy due will be 45%. If it exceeds € 136, a final levy of 75% will be due on the total value.


    The Belastingdienst will understand if you are having temporary problems of a serious nature, and are therefore unable to process certain salary components correctly, fully and in time for each employee. The problems may concern administration, be technical or relate to employment law.

    In that case, on your request the Belastingdienst can decide that you may temporarily (in general no more than one year) pay the tax on the salary components in question by means of a final levy. They will send you a ruling, agreeing to your application of the final levy on the salary components at the tax table rate.

    Delivery van

    Because of the nature of the work, different employees may continuously use a delivery van  alternately. In such a situation it is not easy to discover a pattern in the private use of the van, which makes it hard to apply an individual scheme for the additional tax liability for private use. In such a case, you can apply a final levy of € 300 annually for each delivery van.

    Early retirement

    An extra percentage of pseudo final levy may be due on a salary component. For example, the Belastingdienst may consider a severance pay made to an employee to be an early retirement scheme (RVU). You will then pay 52% pseudo final levy.

    Starting this year, this will temporarily be eased. The 52% levy on RVU benefits will basically remain intact, but this year and the next few years exceptions will be made for older employees. If the severance pay of an employee leaving employment is more than € 568,000 (2021), you will have to pay a 75% pseudo final levy on the part of the severance pay exceeding this amount.


    Including in payroll tax form

    The final levy on the salary components will have to included in the payroll tax form and paid at the same time as the ordinary statutory payroll tax. There are different sections in the payroll tax form for the different forms of final levy and pseudo final levy. The pseudo final levy for excessive severance payments will have to be processed apart from the payroll tax form in a separate paper tax form.

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