Temporary relaxation of the RVU tax
- What is an RVU?
An RVU is an Early Retirement Scheme that serves to bridge the period from dismissal up to the state pension date of an (ex) employee.
- What is an RVU tax?
With the idea that employees have to work longer, the tax authorities did not allow such an RVU until recently. If the tax authorities ruled that there is an RVU, the benefit was taxed with a final tax of 52%.
- What does the relaxation of the RVU levy entail?
The employer may pay the employee up to a maximum amount equal to the net AOW benefit for a maximum of 3 years to bridge the period up to the AOW date. This compensation is no longer taxed with a final levy of 52%, but with the regular levy according to the green tax table for special remuneration. This scheme is temporary and applies under the conditions stated until December 31, 2025.
- What is the starting date of the relaxation?
The intended effective date of the bill was January 1, 2021. However, the Senate only adopted the bill on January 12, 2021. As a result, there was no RVU threshold exemption on January 1, 2021. The bill does have retroactive effect to 1 January 2021.
- What are the conditions for the RVU threshold exemption?
- the benefit must be paid within 3 years before the employee's state pension age;
- the amount of the threshold exemption is calculated per month and is equal to the net AOW benefit. The AOW amounts are adjusted annually.