Object against 16% employers crisis tax!

Object against 16% employers crisis tax for 2012 salaries in access of € 150.000

In April 2013 a one-time employer levy of 16% is due on wages (including bonuses, benefit in kind, et cetera) that exceed € 150,000 in 2012. The levy is also applicable to employees who are shareholder of the employer as well. A recent court case gives ground to object successfully against this crisis levy.

Key information

The name says it all: it is a tax that needs to be paid by the employers and not by employees nor the taxable profit for self proprietors (other than employers). Employers, including entrepreneurs who are employed by their own company, are subject to the levy, for salaries exceeding € 150,000 in 2012. For example, for a salary of € 160,000 the employer will pay 16% extra on € 10,000, which amounts to € 1,600. 

The 2012 excess will be taxed on March 31, 2013, so the 16% has to be paid in April 2013.

Based on a recent court decision this one time employer levy of 16% may be contrary to the European Convention on Human rights. It is like reducing the speed limit retro-actively and fine those who drove to fast in the past. 

Therefore, based on the above, employers who are confronted with the crises levy may successfully object against this crisis levy of March 2013. For this you have to file an objection within six weeks after the March payroll taxes have been (or had to be) paid.

Of course Blue Clue Tax Solutions can assist you with filing a notice of objection with respect to this one time employer levy of 16%. 

What does this mean for our relationships?

Contact your advisor and object!