The Dutch Association of Tax Advisors (‘Nederlandse Orde van Belastingadviseurs’ in Dutch, abbreviated as NOB) has commented on the legislative proposal ‘Fiscale verzamelwet 2022’ (Collective Tax Act 2022). The proposal includes two suggestions which are of interest to employers: lowering the ‘anoniementarief’ (anonymous rate used in the calculation of wage tax and insurance contributions if an employee’s identity has not yet been correctly verified) and lowering the ‘eindheffing’ (final levy as penalty for exceeding the ‘vrije ruimte’, the budget for tax-free allowances and benefits) regulated by the WKR (Work-related Expense Scheme).
According to NOB, a final levy of 75% would be more appropriate in the context of wage tax rates at the moment. The current 80% levy is based on an average, single tax rate of 44.4%, which was logical at the time the WKR was implemented given the tax rates which applied back then.
In its comments, the NOB has also stated that the anonymous rate for wage tax and insurance contributions is still 52%, although the highest rate for wage tax was lowered to 49.5% as of January 1, 2020. They suggest lowering the anonymous rate to 49.5% as well.