close

Dutch government earns over 600 million from 'crisis tax'

Dutch government earns over 600 million from 'crisis tax'

Introduced as a temporary measure last year, the crisis tax has netted the Dutch government 628 million euros in revenue, according to statistic office CBS.

Effective as of the start of this year for companies with employees on incomes of over 150.000 euros, this controversial tax has been extended for a second year as part of the 2014 Budget.

The tax is an additional final levy charge of 16 per cent payable by employers on any employee’s income (including bonuses and shares or options) that exceeded the threshold.

More than half of the total amount came from wages paid in the financial and business services sector.

Businesses affected by crisis tax

Nearly 13.500 thousand businesses in the Netherlands employed one or more people earning more than 150.000 euros in 2012, for a total of 44.000 employees.

Employees in specialised businesses services, for example consultancies, accountants and solicitors, paid 178 million euros in extra tax, while financial institutions made up 125 million euros of the total.

The next most-taxed sectors were trade and then manufacturing, with the least tax being paid by the construction sector.

The average amount paid per business was nearly 47.000 euros. Some smaller sectors had disproportionately large bills: the sport and culture sectors, which include professional footballers, paid an average of 108.000 euros.

Men over-represented

Almost all of the employees for whom the crisis tax was paid, 92 per cent, were men.

The sector with the most women with incomes over 150.000 euros was the care sector, which also employs the most women in general. Financial services and specialised businesses services also contributed to the total.

Protests against tax

Employers, employer unions and football clubs were angry with the Dutch government’s decision to extend the tax by a further year.

The Financiële Telegraaf took a poll to text employer’s reactions, finding that a large majority considered that the tax will cause employers to invest less and that it damages the confidence of citizens. Slightly less than 20 per cent thought it was a good idea.

Alexandra

Author

Alexandra Gowling

Alexandra is an Australian citizen and an experienced expat, having spent (quite a bit of) time in Asia before coming to the Netherlands a year ago. She enjoys writing, reading...

Read more

JOIN THE CONVERSATION (0)

COMMENTS

Leave a comment