Wage retraining exemption extended in the Netherlands

In the Netherlands 2021 budget, it has been proposed to extend the wage tax exemption for qualifying retraining of (laid off) employees.

Presently, the exemption can only be applied to employees whose employment agreement has not formally ended.  If the former employer pays or reimburses retraining expenses on behalf of a former employee after termination of his or her employment, such expenses will be subject to wage withholding tax.

Effective 1 January 2021, it is proposed to apply the tax exemption to former employees as well, subject to the same conditions and limitations of the current exemption for employees.  This proposed extension, once enacted, will provide for more flexibility in negotiating individual or collective redundancy packages.

 

 

Authored by Anita de Jong, Maria Benbrahim, and Alexander Fortuin

Contacts
Anita de Jong
Partner
Amsterdam
Maria Benbrahim
Counsel
Amsterdam
Alexander Fortuin
Counsel
Amsterdam
Languages English
Topics Tax
Countries Netherlands

 

This website is operated by Hogan Lovells Solutions Limited, whose registered office is at 21 Holborn Viaduct, London, United Kingdom, EC1A 2DY. Hogan Lovells Solutions Limited is a wholly-owned subsidiary of Hogan Lovells International LLP but is not itself a law firm. For further details of Hogan Lovells Solutions Limited and the international legal practice that comprises Hogan Lovells International LLP, Hogan Lovells US LLP and their affiliated businesses ("Hogan Lovells"), please see our Legal Notices page. © 2021 Hogan Lovells.

Attorney advertising. Prior results do not guarantee a similar outcome.