Netherlands: Payroll tax measures in 2022 Tax Plan

Changes with regard to payroll tax and social security contributions intended to be effective 1 January 2022

Changes with regard to payroll tax and social security contributions

The 2022 Tax Plan package, presented to the lower house on “Budget Day” (21 September 2021), includes proposed changes with regard to payroll tax and social security contributions. The proposals generally are intended to be effective 1 January 2022.

The tax rates and tax credits, pursuant to the proposals in the 2022 Tax Plan, reveal the rate of the first bracket would be reduced by 0.03%. The top rate of 49.50% applying in 2021 would remain unchanged in 2022.

Other payroll tax-related changes announced in the 2022 Tax Plan package concern:

  • Changes to the work-related costs rules (including codification of a temporary increase of fixed exemption and a specific exemption for working-from-home costs)
  • Increase in the addition to income for private use of company electric cars
  • Introduction of a new manner in which employee share option rights are included in payroll tax and social security contributions
  • Extension of normative salary for innovative start-ups
  • Research and development (R&D) remittance reduction

Read a September 2021 report prepared by the KPMG member firm in the Netherlands

 

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