Private Use of a Mobile Phone - Still No Flat-Rate Assessment
The benefit a worker derives from his/her private use of a company phone constitutes a remuneration benefit and is subject to social security (NOSS) contributions and tax.
In practice, the question which arises is how can a monetary value be assigned to this benefit?
Continue Reading...Seniority Bonus: The Tax Administration Follows the NSSO
The tax administration has changed its position on the seniority bonus (Circular of 25 February 2010) having been "inspired" by the instructions of the NSSO (National Social Security Office) (see our Newsflash (pdf) of 12 March 2009). The changes concern the following elements.
The alternative calculation method to determine the maximum amount of the seniority bonus exempted from social security contributions, as provided by the NSSO, is now also accepted by the tax administration. This means that the seniority premiums awarded from 1 January 2009, are also considered as exempted social advantages, when they are calculated on the average gross amount of a monthly salary in the company.
Continue Reading...HIRE Act Provides Tax Benefits to Employers that Hire and Retain Unemployed Workers
On March 18, 2010,
A Guide to the New Bank Payroll Tax
Lewis Silkin has published a guide (pdf) to the new, one-off 'bank payroll tax' (BPT) that was announced by the Government last month. The tax is payable at a rate of 50% on bonuses (including deferred bonuses and share awards) paid or awarded by banks and certain other financial institutions in the period between 9 December 2009 and 5 April 2010. (The Government has, however, indicated that this period might be extended.) BPT is in addition to the income tax and national insurance contributions also payable on bonuses and results in a combined effective tax rate of over 100%.
Continue Reading...New European Social Security Regulations as of 1 May 2010
On 30 October 2009, the implementing regulation of Regulation (EC) No. 883/2004, that will replace Regulation (EEC) No. 1408/71, was published in the Official Journal of the European Union.
Regulation (EC) No. 883/2004 provides a series of rules to determine which social security regime is applicable in the event of cross-border employment. The basic principle is that a worker is subject to the social security regime of one Member State, namely the country of employment. Secondment and simultaneous employment are two exceptions to the rule. For an overview of the most important changes, we refer to our newsletter: 'Expats: the summer of 2009' (pdf).
Continue Reading...New European Social Security Regulations in Principle as from 1 May 2010
In principle every country has its own social security regime and its own social security rules. To promote internal mobility Regulation (EEC) 1408/71 was introduced. This Regulation doesn't provide a unified European social security regime but rather a series of designation rules to determine which social security is applicable in the event of cross-border employment. The basic principle is that one is subject to the social security regime of one Member State, namely the security of the country of employment. There are two exceptions to this principle: secondment and simultaneous employment in various Member States.
Continue Reading...IRS to Launch Employment Taxes Audit of 5,000 Employers - Is Your Company Ready?
The Internal Revenue Services (IRS) has announced that beginning in November 2009 it will launch its latest National Research Program (NRP). This NRP will be focused on conducting detailed employment taxes examinations. Approximately 5,000 or more employers are to be randomly selected for audit. In addition to potential "assessments," these audits will provide the IRS with the statistical sample of overall employment taxes compliance. The audit program will be conducted over a three year period with at least 2,000 employment tax audits conducted per year. Audits likely will include both for profit and non-profit employers.
Continue reading "IRS to Launch Employment Taxes Audit of 5,000 Employers - Is Your Company Ready?" by GJ Stillson MacDonnell.
Continue reading "IRS to Launch Employment Taxes Audit of 5,000 Employers - Is Your Company Ready?" by GJ Stillson MacDonnell.
Revision of the Mileage Allowance
From 1 July 2009, the new amount of the fixed mileage allowance granted to an employee who uses his/her own vehicle (car, motorcycle or moped) to travel on behalf of an employer, will be 0.3026 EUR per kilometer. This amount applies from 1 July 2009 to 30 June 2010.
This new mileage allowance is indeed lower than the one that applied until 30 June 2009, namely 0.3093 EUR per kilometer.
Sports and Culture Cheques: The Treasury Follows the Position Taken by the National Social Security Office
The Tax Administration has issued new directives concerning sport and culture cheques (Circular of 2 June 2009). The Administration was thereby obviously inspired by the legislation concerning social security (Royal Decree of 30 June 2006).
Sports and culture cheques distributed as from 1 July 2006 are considered as exempted social advantages, when they meet all of the following conditions: