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KLM must end facilitating tax avoidance for pilots

This is evident from the advice by state agent Jeroen Kremers, who, on behalf of the Dutch state, supervises the implementation and compliance with the conditions for the support package for KLM.

By mid-December, KLM had already 1.5 billion NOW support received from the government. It will also receive a direct loan of 1 billion euros and a loan of 2.4 billion euros from 11 banks, but the Dutch state guarantees that loan.


A condition for the government’s corona support for KLM is that the airline ceases to cooperate with or facilitate tax avoidance by employees.

Living in Spain

This tax avoidance concerns employees who live abroad. According to Nieuwsuur About 10 percent of KLM’s pilots live abroad. Spain would be particularly popular, because pilots there can get an exemption of tens of thousands of euros from their income tax, according to Nieuwsuur.

This means that the Dutch government and thus taxpayers support KLM with a lot of money, but some pilots, who earn well, subsequently do not pay tax in the Netherlands.


KLM pilots took average between 100,000 and 150,000 euros per year take it home, with outliers upwards. Meanwhile, employees with a salary of 110,000 euros or more per year have had to give up 20 percent.

With KLM to work

A lower tax burden may be a consideration for KLM employees to live abroad, Kremers said.


It is no problem for pilots if they live in Spain. They can fly with KLM to Schiphol at a low rate, because that is where they start their work.

‘Concern’

According to Kremers, KLM cannot be expected to check whether every employee lives abroad for tax reasons, including personal circumstances.

But KLM can be expected to worry about possible tax avoidance by employees, especially if the company makes use of facilities, he says.


Kaag and Harbers agree with Kremers

The brand new Minister of Finance Sigrid Kaag and Minister Mark Harbers of Infrastructure and Water Management agree with him. “We endorse this observation and we think it is important that the state agent and KLM come to a suitable solution.”

According to the ministers, KLM should think of generic initiatives. Kremers is discussing this with KLM.


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