Changes in Formal Tax Law

In April of this year, the Parliament has approved several changes to the General Tax Ordinance (Algemene Landsverordening Landsbelastingen or ALL). A few changes are included in this ordinance, one of which is the mandatory annual provision of information. It is mandatory for employers to provide information with regard to the wages paid to employees and pension funds, including wages paid to free-lancers. Insurance companies must also provide information with regard to pensions. With the aim to improve overall tax compliance, government has now included a new provision in the ALL that allows the tax department to publish regulations that would make it mandatory for banks to provide the amount of interest paid to residents. Insurance companies must also provide information with regard to the interest included in a benefit from a capital insurance. Currently, it is not mandatory for insurance companies to provide information on annuities, but this may be introduced in the near future. It is to be expected that government will announce these obligations before the end of this year. In that case, it is likely that local banks and insurance companies may have to provide information on interest and annuities paid to residents in the year 2013.