Algorithm Nil Indicators

Dutch Tax and Customs Administration

This page contains information about the 'Nil declarants' algorithm. The algorithm helps Tax and Customs Administration staff to supervise timely cancellation of the obligation to file wage tax return notices by withholding agents. The Nihilaangevers algorithm helps Tax and Customs Administration staff respond to wrongly filed wage tax return notices.

Last change on 2nd of July 2025, at 11:01 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: Field not filled in.
• Status: In use

General information

Theme

Public finance

Begin date

Field not filled in.

Contact information

[e-mail] .

Link to publication website

https://over-ons.belastingdienst.nl/onderwerpen/omgaan-met-gegevens/algoritmeregister/

Link to source registration

https://over-ons.belastingdienst.nl/onderwerpen/omgaan-met-gegevens/algoritmeregister/nihilaangevers/

Responsible use

Goal and impact

The Tax Authority checks withholding agents for timely, correct and complete declaration and payment of payroll taxes. Payroll taxes consist of wage tax, national insurance contributions, employee insurance contributions and the income-related Healthcare Insurance Act contribution. Withholding agents (such as an employer, pension fund or benefits agency) withhold wage tax and national insurance contributions from their employee's wages and, in some cases, the income-related Healthcare Insurance Act contribution. They remit this to the Tax Office. The employee insurance contributions and usually the income-related Healthcare Insurance Act contribution are not deducted from the employee's wage, but are paid by the employer to the Tax Administration.

If the Tax Office suspects that there is a withholding obligation or employer status, a withholding agent is invited to file the payroll tax return. The withholding agent is then obliged to file a return. This is also referred to as an obligation to file a return.

If a withholding agent no longer employs employees or no longer pays salaries, the obligation to file a return may lapse. The withholding agent must declare in writing that there is no longer an obligation to withhold and that it is not expected that an obligation to withhold will arise again in the next 12 months.

Until the moment the obligation to declare has ended, declarations must be filed. Even if there is nothing to declare. This is called a nil declaration. If a withholding agent does not opt out of the obligation to declare because there is nothing to declare, and still continues to submit a nil declaration, this is called a nil declarant.

The algorithm looks at withholding agents who file nil returns for a longer period of time consecutively. This is assessed by an employee. An assessment is then made, for example, as to whether a declaration was submitted unnecessarily or wrongly.

Based on the clues from the algorithm, the handler can assess the importance of the declaration obligation for the withholding agent. It is the Tax Administration's handler who can ultimately contact the withholding agent to ensure that the obligation to file the return is still cancelled.

Considerations

Overseeing the deregistration of the declaration requirement is important for the withholding agent because it provides the policy administration with the correct data. We want to do this carefully. The algorithm can support a Tax Administration employee in this. We want to do the assessment carefully, more efficiently and more uniformly.

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 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

1. General State Tax Act:
2. General Administrative Law Act:
3. General Data Protection Regulation (Implementation) Act:
4. General Data Protection Regulation:
5. Payroll Tax Act 1964:
6. Social Insurance (Funding) Act:
7. General provisions Citizen Service Number Act:
8. Archives Act 1995:

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/
• Algemene verordening gegevensbescherming: : https://eur-lex.europa.eu/legal-content/NL/TXT/HTML/?uri=CELEX:32016R0679
• 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/

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 Nihilaangevers algorithm does not use special personal data.

• Equality and non-discrimination

The algorithm is assessed in line with applicable non-discrimination principles for direct and indirect discrimination. 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 (LH number)
• Payroll tax details
• Payroll tax return data
• Payroll tax levy data
• Turnover data withholding agents

Links to data sources

• Identificerende gegevens (LH-nummer): Belastingdienst
• Relatiegegevens Loonheffingen: Belastingdienst
• Aangiftegegevens Loonheffingen : Belastingdienst
• Heffingsgegevens Loonheffingen: Belastingdienst
• Omzetgegevens Inhoudingsplichtigen: Belastingdienst

Technical design

The algorithm consists of selection rules created 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

The algorithm was developed by Tax Administration staff and is also maintained internally.