Quarter 3: Update from our Netherlands Office

by Alexander Beard, on Oct 24, 2017 7:15:39 AM

On October 10th two Liberal and two Christian parties came to an agreement about a new coalition. It took 4-5 months of negotiating to get to this point.

The main message of the coalition is “Vertrouwen in de toekomst” (Trust in the future), and with which they claim everybody in the Netherlands will be better off.

For employee benefits the following subjects in the new coalition agreement or of importance:

  • Employers with up to 25 members of staff will only have to pay one year of sick pay.
  • Employers can employ people on temporary contracts for 3 terms (now 2).
  • Corporation Tax will be lowered from 25% to 21%, with a tax rate of 16% up to the first €200.000 profit.
  • No change to the current level of the own risk.
  • The 30% ruling for expats will be downsized from 8 years to a 5 year period.
  • Further reforms on occupational DB pension plans, major shift from DB to DC in 2020.

The plans will be explained further of the next couple of months, and off course we will keep you updated when more details of the plans are published.

Bram Bogaard
Managing Director: Europe - AB International Benefits B.V.

Topics:AnnouncementsNetherlandsTax