Director-major shareholders who have multiple employment relationships with their own public limited liability companies (“BVs”) and are not insured under the employee insurances, must pay income-related contributions under the Healthcare Insurance Act for all these employment relationships. If by doing so, they exceed the maximum contribution, they will automatically receive a refund for the amount they have paid too much, says Deputy Minister of Finance, Mr. Weekers.
In 2013, the maximum salary for the income-related contribution under the Health Insurance Act is EUR 50,853. The maximum contribution for director-major shareholders who are not insured under the employee insurances is 5.65% of the maximum salary, i.e. EUR 2,873 per annum. If these director-major shareholders have multiple employment relationships with their own BVs, they owe the income-related contributions under the Healthcare Insurance Act for all these employment relationships. The maximum salary to be taken into account for the income-related contribution is then determined for each employment relationship individually. If the total salary of all the employment relationships exceeds the maximum salary to be taken into account for the income-related contribution, this means too much contributions have been remitted.
Automatic refund of the excess amount paid in contributions
The Deputy Minister of Finance has now informed the Lower House that director-major shareholders will, in such cases, receive an automatic refund of the amount they paid in excess of the maximum income-related contribution under the Health Insurance Act. In general, the refund will be paid in the third quarter of the year following the year in which the salary was received.
Advance payment on refund or centralized payment regulation
Director-major shareholders can prevent the temporary liquidity disadvantage by requesting an advance payment for the expected refund for the income-related contribution under the Health Insurance Act in the second half of the year in which the salary is received. The Dutch Tax and Customs Administration will, as much as possible, make the advance payment in the third quarter of the year in question. Another possibility is to apply the centralized payment regulation (“doorbetaaldloonregeling”). One BV pays the total salary, also on behalf of the other BVs, and acts as the withholding agent. The other BVs will then no longer need to pay the income-related contribution under the Health Insurance Act.