• Service: Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 12/2/2013

Netherlands - Review pension plans prior to 2014 

December 2:  Because Dutch tax relief for accrued pension rights will be scaled back beginning in 2014, taxpayers need to review all pension plans to confirm they are acceptable for tax purposes and, if necessary, amend the plans. This review must be completed prior to 1 January 2014 to manage penalty risk (which could be substantial).

The scaling back of accrued pension rights is the result of a law (Wet verhoging AOW- en pensioenrichtleeftijd, known in English as “Raising of the State Pension Age and Standard Pension Retirement Age Act”) that had a date of enactment of 1 January 2013 and the fact that, as of 2013, the state pension age is increased annually by one, two or three months.

In principle, the pension plans concluded between employers and employees will not need to be amended, but it could be advisable to revise employment contracts.

Read a November 2013 report prepared by the KPMG member firm in the Netherlands: Review your pension plan before the end of the year!

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