In view of the Deregulation of Assessment of Independent Contractor Status Act (Wet Deregulering Beoordeling Arbeidsrelaties) the State Secretary of Finance published a decree to abolish the wage tax withholding obligation for the members of the supervisory board of directors.

Until 1 January 2017 the decree offers the company and the supervisory board member a choice: withholding wage tax, or not. Starting 1 January 2017, the wage tax will no longer apply to the supervisory board member, unless the company and the board member request the tax inspector to apply ‘opting-in’. Because the choice to withhold wage tax or not, may have consequences for (among other things) the application of the 30%-ruling, the tax position of the non-resident supervisory board member, the reporting position for personal income tax, the social security position and the payment of the contribution for the Health Care Act (Zvw bijdrage), we would advise to carefully consider the choice to be made on a case by case basis.