Salary from employment
Your employees are remunerated in money and in kind. This remuneration is subject to tax, i.e. payroll tax. Everything that employees receive, in whatever name or form, from their current or former employment is deemed to be salary and is, in principle, taxable. This also includes salary in kind. However, it is not always clear whether, when and how remuneration and allowances are subject to payroll tax. The payroll tax rules have many special provisions that contain an exemption or stipulate specific valuation rules, including in the area of pensions and option and savings rules. These rules are very detailed and the tax authorities regularly check whether the legal obligations are being complied with.
How can DCTL help you?
By engaging us you can avoid unwelcome surprises in the form of additional assessments that can be imposed up to five years back, as well as the associated costs of penalties, interest and grossing up. The complexity of the applicable legislation and regulations requires a high degree of commitment and extensive specialization on the advisor’s part.
Matters that our tax advisors can help you with include:
- Reviewing, for tax purposes, your fringe benefits, such as expense allowance arrangements, employee share ownership plans and pension plans.
- Assisting during payroll tax audits performed by the tax authorities and, if necessary, conducting objection and appeal proceedings.
- Providing information on amended legislation and its implications for agreements between employers and employees.
- Substantiating the fixed expense allowance that you pay tax-free to your employees.