All foreign companies which are sending people to work on assignment in the Netherlands are deemed to have 'fictitious residence' in the Netherlands for tax purposes. This means that all employees on assignment in the Netherlands are subject to Dutch income tax liability from day one of such an assignment. The foreign company is obligated to set up a payroll administration and must make sure that every month the right amount of wage tax and premiums for the social security are withheld and paid. This is also applicable to individual contractors. They may be able to work under their foreign Ltd but that is something which must be approved by the tax authorities.

If a foreign company doesn't follow the Dutch rules the client for whom the employees are working in the Netherlands can be hold liable for the wage tax debt, premiums social security and possible fines. This can lead to serious consequences.

We can assist you with the whole procedure and take care of your payroll:

• Registration with the tax office (UWV is a part of the tax authorities since 2006)
• Creating contracts
• Application of the 30% ruling (if applicable)
• Calculation of monthly salary and creation of payslips
• Advice about the available tax free allowances
• Submitting of wage tax returns and forms for the national insurance
• Correspondence with involved parties
• Annual accounts, administration and year end statements
• Creating payment schedule for wage tax, national insurances and net wages.

Please contact us for more information. See also our special website about our Payroll Service.

Click here for more information from the Dutch tax authorities