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13th Payroll run Ruling “No need to file employee income tax returns”

Chris van Wijngaarden

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In order to reduce the “costly” administrative burden for you or your employees with

respect to filing individual income tax returns, it is possible (under conditions) to agree a

wage tax Ruling with the Dutch tax authorities to file a 13th payroll run which includes the

income tax rates. As a result, no individual income tax returns have to be filed anymore

for your employees.

The Ruling can be agreed for the following employees:

Employee is not resident of the Netherland and only has Dutch sourced employment income:

Employee is resident of the Netherlands and benefits from the 30%-ruling:

“If you arrange the preparation of the income tax returns for 30 employees for EUR 750 per return per year, your

maximum yearly savings will amount to EUR 22.500. You may only require assistance with respect to a one time Ruling

request and a one time calculation per employee at year end which would maximum amount to EUR 150 per employee”.

13th Payroll Run Ruling

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Conditions:

The employee has been employed by your company for the whole tax year or has - demonstrably - in the

relevant year only received income from your company and has no other income in or from the

Netherlands:

Your company can (and is able to) and wishes to carry out the payroll calculation and they have the

required expertise - internally or externally - at their disposal:

An information system will be used with which your company will carry out the payroll administration in

good time and in full (including all pay-related components):

Your company is responsible for the whole and accurate processing of the payroll administration and can

be called to account for it:

The employee will declare in writing, that the working method will be applied, and that he/she agrees with

this working method:

Your company keep the employee's written agreement and this ruling with the payroll administration

records.

Conditions 13th payroll Run

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Ruling request and implementation 3

Chris van Wijngaarden | Partner Compensation tax

T. +31 (0)20 4356404

E. Chris.vanwijngaarden@taxand.nl

Ruling request:

Contact DTA including formal written request:

Employees to declare approval and sign statements:

Inform DTA:

Year end income tax calculations applying year table income tax rates and include correct amount of

taxes in payroll return:

Please contact Chris van Wijngaarden for any questions and or a specific fee quote for your situation.

Contact details: