Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/1/2013

Netherlands - Refunds of healthcare contributions to directors-major shareholders 

March 1: Directors-major shareholders who have multiple employment relationships with their own public limited liability companies (BVs) and are not insured under the employee insurances, must pay income-related contributions under the Healthcare Insurance Act for all these employment relationships.

However, if in paying such contributions, the individuals exceed the maximum contribution, they will automatically receive a refund for the overpaid amount, according to Dutch Finance Ministry officials.


In general, the refund will be paid in the third quarter of the year following the year in which the salary was received.


Alternatively, these individuals may request an advance payment for the expected refund for the income-related contribution under the Health Insurance Act in the second half of the year in which the salary is received.


The Dutch tax authorities will aim to make the advance payment in the third quarter of the year in question.


Another option is to apply the centralized payment regulation (doorbetaaldloonregeling) under which one BV pays the total salary, also on behalf of the other BVs, and acts as the withholding agent. The other BVs will then no longer need to pay the income-related contribution under the Health Insurance Act.


Read a February 2013 report prepared by the KPMG member firm in the Netherlands: Director-major shareholders with multiple employment relationships with private limited liability companies will be refunded for the excess amount paid in contributions under the Healthcare Insurance Act




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