Payroll Tax Handbook 2026 published

The Tax and Customs Administration has published its Payroll Tax Handbook 2026. This is an important reference work for employers when applying payroll tax.  It gives the Tax and Customs Administration’s views on almost every payroll tax-related topic. This edition also includes the information that appeared in the last Payroll Tax Newsletter 2026. 

Here follows a brief summary of the some of the changes relative to the previous edition:

• Annual updates: all the amounts, rates and percentages have been updated from 1 January 2026. Calculation examples, too.
• Employment relationships: the enforcement ‘soft landing’ in the area of bogus self-employment has been partially extended to 2026. This means that, in principle, no default penalties (fines) will be imposed. 
• Transfer of a business: the Handbook consistently uses the legal term ‘transfer of a business’ rather than merger or takeover. This topic is covered in more detail.
• Wage definition and customary criterion: clarifications have been made concerning what does and does not form part of salary. The explanation of the customary criterion in the context of the work-related costs scheme (WKR) has also been tightened up, including the efficacy threshold of €2,400 per person per year.
• Removal of obsolete schemes: references to abolished schemes, such as the low-income benefit (LIV), have been removed.
• International employment: The tax treaty with Germany includes a specific threshold for working from home. The Handbook now also includes a reference to that. In addition, the possibility of reimbursing certain costs as a specific exemption (e.g. extra cost of living expenses and additional telephone expenses) has been withdrawn.
• Early retirement schemes and pensions: the Early Retirement Scheme (RVU) exemption threshold is no longer temporary but has been made permanent. At the same time the rate for the pseudo-final levy has been raised to 57.7%.
• Payrolling and temping agency personnel: the distinction between payroll services and temporary agency work has been clarified, with more emphasis on the allocation function and the elements of payroll agreements.