News item | 10-07-2023 | 10:00 am
The IKV Decree contains rules for the use of income ratios (IKVs) in the wage tax return. The decree will be amended to make it easier for employers to provide data. These changes are not yet finalized. You can respond to the proposal via an internet consultation until 7 August 2023.
The data that employers provide via the payroll tax return is not only used for collecting payroll taxes, but also for, for example, providing benefits and determining the right to benefits for citizens. The employer provides this information per employee in an IKV.
The rules for IKVs are laid down in the IKV Decree from 2021. The entry into force of that decree was postponed after signals that the rules were too complex. It appears complicated for employers and other withholding agents to state employment and each benefit relationship separately. This applies in particular to benefits under the Sickness Benefits Act (ZW) and the Work and Care Act (WAZO).
Therefore, the IKV Decree will be amended on the following points:
- Employers no longer declare ZW benefits and WAZO benefits received during and on account of employment in separate IKVs, but declare these benefits in the IKV of the underlying employment.
- Employers are obliged to create a new IKV when an open-ended employment contract is created, even if this happens after a series of temporary contracts.
- The Daily Wage Decree on Employee Insurance schemes will be amended so that employees who receive a lower wage due to special circumstances can use a replacement period when calculating the daily wage. As a result, the daily wage will not be lower if the employee applies for a benefit.
- The wording of the first three exceptions in the IKV Decree is tightened up by a reference to Article 1 of the Pensions Act, which makes it clear that these exceptions apply to all types of pension funds that pay old age pensions, survivor’s pensions and/or disability pensions.
You can respond to these changes via internetconsultatie.nl. The Ministry of Social Affairs and Employment will take the reactions into account in the further design of this draft amendment decree. This process is recorded in a report that is again published on internetconsultatie.nl.