Netherlands: "Crisis levy" retroactively imposed on employers is upheld

Netherlands: Crisis levy imposed on employers is upheld

The Dutch Supreme Court (Hoge Raad) on 29 January 2016, issued a judgment in a test case concerning the validity of the "crisis levy" imposed in 2013 and 2014. According to the Supreme Court, the crisis levy did not violate the right to property as protected under Article 1 of Protocol No. 1 to the European Convention of Human Rights and Fundamental Freedoms.

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Crisis levy

In both 2013 and 2014, a one-time levy was imposed on employers at a rate of 16% of salaries exceeding €150,000 that were paid in the preceding years of 2012 and 2013. Many employers objected to the crisis levy, in particular asserting that the crisis levy's retroactive application was unacceptable. 

The Supreme Court concluded that the retroactive effect of the crisis levy was justified. 


Read a January 2016 report prepared by the KPMG member firm in the Netherlands: Supreme Court: retroactive effect of crisis levy is justified

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