Income tax, social security and wage tax compliance requirements are becoming increasingly complex and are constantly changing. Companies need to ensure that their global remuneration policy is compliant with legal and regulatory requirements wherever their employees are working. Global tax compliance and tax efficient incentive plans are vital if the maximum value is to be achieved for both employers and employees. Our Compensation Tax team provides proactive advice on compensation and employee retention plans, wage and income tax compliance services, cross border tax and social security advice.
Practical advice that works
The nature of employee compensation means that operational accuracy and compliance is essential. Errors can be costly as they result in reputational damage as well as financial loss. As tax authorities across the globe increasingly co-operate with each other, disclosure demands are increasing, and tax and social security rates rise worldwide, companies need to take even greater care to achieve cross border compliance. Our Compensation team provides a hands-on service to ensure your compliance works in practice not just in theory, wherever you deploy your people.
Wage Tax and Social Security
Employers may withhold wage tax and social security in the Netherlands for a number of reasons. Taxand knows which questions to ask so that you can be confident your organisation is complying with the right regulations. A different set of rules applies for an employee working for a non-Dutch employer. Overseas employees may be subject to social security such as national insurance and employee insurance in their home country, their work country or their employer’s country of residence. Taxand experts help you understand your situation and the local law and EU regulations that may apply so as to determine where obligations lie for both the employee and the employer.
Assigning employees and expatriates
Legislation can be complex when it comes to assigning employees to or from the Netherlands and questions arise as to where the employee is subject to tax, whether or not there is a withholding obligation, if special expatriate regimes apply, whether a visa or work permit is required, and if there tax exemptions for particular remunerations or benefits. Taxand can advise you on how to best deal with specific tax and social security issues, income tax returns, payroll administration, assignment policies, split payroll, visa and residency permits, assignment contracts and expatriate regimes.
Employers may have a number of reasons to offer their employees additional remuneration in the form of equity related instruments, be it from a retention, performance or management perspective. Whether you are considering stock appreciation rights, stock option plans, restricted shares or restricted stock units, we can help you settle on the right instrument and advise you on the consequences for employee tax, labour law and corporate law.
Management structures and participation
The management structure you have affects the wage tax issues you may face. We can advise you on the steps you need to take in terms of tax, labour law and corporate law when undertaking an acquisition, sale of a participation, management agreement or shareholder agreement, and in the case of issues with deemed wages, deemed employment relationships, social security consequences, or carried interest anti-abuse legislation. We offer thorough and independent advice in rulings with the tax administration and regarding employee insurance.
Social security registration
Employers deal with social security aspects in a number of forms, from health insurance contributions to pension entitlements. In international situations, it can be tricky not only determining which country’s social security system applies and whether or not A1 statements should be in place, but also if an employer should be registered for security purposes elsewhere. Our experts can enlighten the situation and help you in matters concerning national insurance, employee insurance, international social security, protective pension assessments and qualification for foreign pension schemes.