When a foreign employee is temporarily assigned to the Netherlands, he may want to continue to participate in his (foreign) pension scheme during the period he is subject to Dutch taxation. In general, if a foreign pension scheme is not approved under the Dutch wage tax act it has to get a corresponding approval. For this, there is a decree with conditions that have to be met by the foreign pension scheme to get a corresponding approval.

An English employer that made employees available for the IT-branch in the Netherlands offered the assigned employees a pension scheme that was not approved under the Dutch wage tax act. Furthermore, the employer had not requested a corresponding approval for the pension scheme. The tax inspector, therefore, took the position that the pension premiums were wages and issued an additional tax assessment.

Since the pension scheme did not meet the condition of the Dutch wage tax act the Court of Appeal in Den Bosch ruled that the pension promise had to be considered wages from current employment. In the same case, the Court had already determined that the pension scheme did not meet the conditions of the Dutch wage tax act on essential points to qualify for a corresponding approval.

The additional tax assessment of the tax inspector was, therefore, maintained.