The periodical wage tax return is accompanied by and based on a range of employee and income data. These data are processed by the tax office not only for determining the proper withholding obligation, but also for providing other government bodies (like the Dutch Social Security Office ('SVB') and the Employee Insurance Agency ('UWV') with relevant information about the employee, the employer and the income of the employee.

The UWV stores this information the policy administration, which can then ultimately be used to determine the proper amount of benefits and allowances to which employees are legally entitled. That is why it is important that the employee data

If after filing and payment of wage tax, it appears that an incorrect or incomplete return has been filed, the law provides for a rather sophisticated system for making so-called corrections.

It depends on the nature of the omission, how corrections must be made. There are four ways allowed to made corrections:   

1. resend the complete payroll return (including attachments)
2. file a supplementary return
3. file a correction with a return
4. file a single correction

Which correction is required depends on: 

• the year for which you want to correct 
• the tax return period that you want to correct
• the way in which the withholding agent files its returns: with our filing software of the Dutch tax office, or with other administration and filing software.

The withholding agent is supposed to make the corrections voluntarily as soon as they are discovered.

It is common practice that the tax office reports back with mistakes which require correction. If the corrections are not voluntarily done by the withholding agent, the tax office may force the corrections to be made by levying an additional assessment (including penalties and interest), and usually this is the starting point for further investigation and possibly a full tax audit.  

Go to >   The payroll service package of TAXci

Go to >    Index page - Payroll obligations in the Netherlands