Pay slips to be simplified

The finance ministry is working on plans to simplify pay slips by replacing all the various premium deductions with a single figure, various media report on Monday.

This will be ‘the most important simplification of corporate adminstration this cabinet has taken,’ junior finance minister Jan Kees de Jager was reported as saying.
In addition, the tax office and social security department are drawing up a single definition for the word ‘pay’. At the moment, for example, a company car is treated as pay for income tax purposes but not in terms of social security premiums.
The move will simplify company administration systems and the tax office’s work, De Jager said.
Last week it emerged that 730,000 tax returns will have to be resubmitted because of computer problems.
In addition, extra tax on early retirement due to be introduced in 2011 is ‘too complicated’ and needs to be amended, De Jager said.
In addition, De Jager told the Telegraaf on Sunday that the new kilometre tax will not be administered by the tax office.

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