Healthcare institutions have to deal with various types of tax. In particular, issues arise in the areas of VAT and wage taxes and national insurance contributions. While there are fewer issues with corporate income tax and inheritance and gift tax, it is important to keep a close eye on these as well. Below, we explain more about the application of taxes in the healthcare sector.
Limitation of VAT burden in healthcare institutions
VAT is often a considerable cost item for healthcare institutions. It is therefore important to always check whether limitation of the VAT burden is possible. This can be achieved by correctly evaluating the exemptions for medical services. Our specialists can advise you on this subject.
In addition, collaborations between healthcare institutions or with third parties can lead to VAT charges. In that case, we can investigate on your behalf the extent to which the adverse effects thereof can be limited, and then limit these as much as possible. Moreover, it is important that the tax consequences of the purchase or sale and rental or lease of real estate be given due consideration. Not only VAT, but also real estate transfer tax applies here.
Obligations and risk management regarding wage tax
Obligations concerning the levying of wage tax and national and employed persons’ insurance contributions deserve your attention. For example, are your staff employed by you or not? And do you withhold tax and contributions on benefits and/or provisions in the correct manner? You can pay these provisions on the basis of the collective agreement or your own employment conditions. In addition, it is important to monitor margin schemes concerning dismissal and non-activity schemes. In this way, you can avoid failure to foresee tax expenses in a timely manner.
Another complex issue is that of hiring in self-employed workers. You can limit the risks you run in doing so by pursuing the correct policy in respect of so-called ‘VAR-verklaringen’ (Declarations of Independent Contractor Status). Our specialists in the area of risk management in the healthcare sector will gladly assist you here.
Potential corporate income tax exemption
In principle, healthcare institutions are exempt from corporate income tax. This exemption applies to all activities relating to the nursing of, caring for and recovery of patients. However, please note that this tax exemption does not apply if your institution carries out other activities to an excessive extent. Are you exceeding this threshold or is it likely that you will? Then we will investigate for you if and how you can still avoid your tax liability.
Tax scan for healthcare institutions
Meijburg & Co has developed a tax scan for healthcare institutions. We use it to screen your organisation for one or more forms of tax revenue. The main purpose of this is the analysis of existing risks. Secondly, it aims to optimise the opportunities to improve your tax position.
That is because in healthcare, it has become increasingly important to be in control where tax is concerned. The Dutch Tax and Customs Administration approaches more and more institutions concerning horizontal monitoring from this perspective. We can assist you in establishing a Tax Control Framework. This involves setting out all of the control measures and procedures, so that you have nothing more to worry about.
Need tax advice regarding healthcare?
Do you have a healthcare institution, and would you like tax advice on wage taxes? Or do you want to have a tax scan carried out, so that your organisation can be better in control? Our professionals always seek out the best solution for you. Not only do we take risk management and limitation of tax burden into consideration, but also the costs and speed required. Thanks to our vast experience in the healthcare sector, you have no reason for any further concern whatsoever regarding your institution’s tax affairs.