Please note: The algorithm descriptions in English have been automatically translated. Errors may have been introduced in this process. For the original descriptions, go to the Dutch version of the Algorithm Register.
Algorithm Research and Development
- Publication category
- Impactful algorithms
- Impact assessment
- Field not filled in.
- Status
- In use
General information
Theme
Begin date
Contact information
Link to publication website
Link to source registration
Responsible use
Goal and impact
The Tax Authority checks withholding agents for correct and complete declaration and payment of payroll taxes. Payroll taxes consist of wage tax, national insurance contributions, employee insurance and the income-related Healthcare Insurance Act contribution. Withholding agents (such as an employer, pension fund or benefits agency) deduct the wage tax and national insurance contributions from their employee's pay and, in some cases, the income-related healthcare insurance contribution. They remit this to the tax authorities. The employee insurance contributions and usually the income-dependent healthcare insurance contribution are not deducted from the employee's wage, but are remitted by the employer to the Tax Administration.
A withholding agent can reduce the remittance of wage tax and national insurance contributions in the wage tax return by using the Wage Tax and National Insurance Contributions Reduction Act (WVA). The WVA contains the legal framework of the Promoting Research and Development Act (WBSO).
The Act on the Promotion of Research and Development Work (Wet Bevordering Speur- en Ontwikkelingswerk) is a tax scheme that allows the costs of Research & Development to be reduced. It is implemented by the Netherlands Enterprise Agency. Research & Development refers to the development of a product, production process or software or the performance of technical-scientific research.
The withholding agent must submit an application to the Rijksdienst voor Ondernemend Nederland. If this application meets all the conditions, the Rijksdienst voor Ondernemend Nederland will issue a declaration for Research and Development. With this declaration, the withholding agent can make use of the Speur- en Ontwikkelingswerk scheme, which means a reduction on the wage tax and national insurance contributions to be paid to the Tax and Customs Administration. This reduction on the remittance must be applied in the wage tax return.
The algorithm helps Tax and Customs Administration employees monitor the correct application of the Speur- en Ontwikkelingswerk scheme in the wage tax return. The Speur- en Ontwikkelingswerk scheme is part of the Salaries Tax and National Insurance Contributions Reduction Act.
Considerations
Monitoring the application of the reduction on the payment of wage tax and national insurance contributions is important for the withholding agent to achieve a correct wage declaration. We want to do this carefully. The algorithm can support a Tax Administration employee in this. As a result, the assessment is more careful, efficient and uniform.
Human intervention
Human intervention in the Tax Administration context implies that a competent and knowledgeable employee plays a substantial role in decision-making.
The operation of the algorithm always involves human intervention. The algorithm detects and selects. It is the Tax Administration employee who makes the decision on whether to contact the withholding agent.
Risk management
The General Administrative Law Act (Awb) requires the government's actions to be transparent and lawful. The Tax Administration observes the general principles of good governance when applying and developing algorithms.
The algorithm uses data collected under various tax laws. As required by the AVG, no more data is used than necessary.
The selection rules are reviewed periodically and adjusted if necessary to remain compliant with laws and regulations.
Legal basis
- General State Tax Act
- General Administrative Law Act
- General Data Protection Regulation (Implementation) Act
- Payroll Tax Act 1964
- Social Insurance (Funding) Act
- General Data Protection Act
- Archives Act 1995
- Salaries Tax and National Insurance Contributions (Reduction) Act
Links to legal bases
- Algemene wet inzake rijksbelastingen:: https://wetten.overheid.nl/BWBR0002320/
- Algemene wet bestuursrecht:: https://wetten.overheid.nl/BWBR0005537/
- Uitvoeringswet algemene verordening gegevensbescherming: : https://wetten.overheid.nl/BWBR0040940/
- Wet op de loonbelasting 1964:: https://wetten.overheid.nl/BWBR0002471/
- Wet financiering sociale verzekeringen:: https://wetten.overheid.nl/BWBR0017745/
- Wet algemene bepalingen Burgerservicenummer:: https://wetten.overheid.nl/BWBR0022428/
- Archiefwet 1995: : https://wetten.overheid.nl/BWBR0007376/
- Wet vermindering afdracht loonbelasting en premie voor de volksverzekeringen:: https://wetten.overheid.nl/BWBR0007746/
Elaboration on impact assessments
- Privacy and AVG
The use of data is tested against the General Data Protection Regulation (AVG). Reviewing personal data reveals any privacy risks and allows appropriate measures to be taken.
The AVG prescribes that no more data should be used than necessary. This is called data minimisation. The Tax Administration regularly examines whether the data used are still necessary and may therefore be used.
- Use of special personal data
The algorithm Speur- en Ontwikkelingswerk does not use special personal data.
- Equality and non-discrimination
The selection rules in the algorithm are tested against non-discrimination legislation. Processing as little personal data as possible reduces the risk of direct discrimination. Employees involved in developing and managing the algorithms receive training on data protection and bias.
Operations
Data
- Identifying data (including LH number)
- Payroll tax details
- Payroll tax return data
- Availability data
Links to data sources
- Identificerende gegevens (o.a. LH-nummer): Belastingdienst
- Relatiegegevens Loonheffingen: Belastingdienst
- Aangiftegegevens Loonheffingen: Belastingdienst
- Beschikkingsgegevens: RVO
Technical design
The algorithm checks whether too much or wrongly a reduction on the payment of wage tax and national insurance contributions has been claimed in the wage tax return. It also checks the Certificate of Research and Development issued by the Netherlands Enterprise Agency. If too many remittance reduction amounts are claimed, a correction is made at the request of the Tax and Customs Administration.
Based on the indications from the algorithm, the processor can assess the return. It is the Tax Administration's handler who ultimately determines whether the payroll tax return contains inaccuracies and can contact the withholding agent.
The algorithm consists of selection rules drawn up by content experts based on laws, regulations and expertise.
The algorithm is not self-learning. That means it does not evolve as it is used.
External provider
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