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A company has enquired whether it should apply a special or general withholding rate for courses taught by its own employees. The Directorate-General for Taxes (DGT) has ruled that, due to the existence of an employment relationship, the general payroll withholding procedure must be applied.
Companies must ensure that income from training activities conducted by employees is treated as employment income subject to standard payroll withholding rates rather than special rates.
The tax team reviews your specific situation.
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