SUNNYVALE, Calif. -- Netherlands recently passed a third amendment to the Tax Plan 2014, reports Nair & Co.’s International Tax Team. The amendment includes reduction in the social security premiums for some employees along with other tax law changes – all effective 1 January 2014.
Social Security premiums for certain young employees will be reduced by €3,500 annually, for two years, starting 1 January 2014. This reduction will apply to employees between 18 and 27 years of age and employees who have received unemployment benefits or certain social assistance. Further, certain conditions have been prescribed for availing the above benefits, employment contracts must offer work for a minimum of 32 hours per week and the contract must be for a minimum of six month duration.
The above measure can be applied for a maximum period of two years. In case the employee turns 27 years old in this period, then the reduction will continue to apply for the remaining two year period.
However, in a situation where the contract does not satisfy the two abovementioned conditions (pertaining to minimum hours of work per week and the tenure of employment contracts) the reduction would not be applicable.
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