As of 1 January 2017, the fictitious employment relationship for members of the supervisory board of directors will cease to exist, whereby payroll tax will no longer be withheld and no income-related healthcare insurance contribution will have to be paid by the employer. This could be detrimental to the supervisory board member. For example, if he has made use of the 30% rule, this will no longer be possible.
The loss of the 30% rule can be prevented by making use of the so-called opting-in arrangement. This opting-in arrangement is a joint declaration made by the supervisory board member and the company which must be submitted to the tax authorities for the first payment in 2017. By opting-in, the supervisory board membership is once again considered as an employment relationship and the 30% rule can be applied. However, there is a downside. If the supervisory board member is under an obligation in the Netherlands to pay compulsory social insurance contributions, then he has to pay the healthcare insurance contribution that was paid by the company up until 1 January 2017. From 1 January 2017, the supervisory board member has responsibility for paying the healthcare insurance contribution. Regarding the ceiling available to employers for non-taxable benefits to employees as part of the Expense Allowance Scheme, the opt-in scheme is advantageous because the fee that the supervisory board member receives by opting in counts as the total taxable wages on which this ceiling is calculated.
We can do this for you It is important that the joint declaration is submitted to the inspector for the first planned payment in 2017.