Payroll in the Netherlands
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 held liable for the wage tax debt, premiums social security and possible fines. This can lead to serious consequences.
Expatax is a payroll bureau outsourcing service providing wages services in the Netherlands for businesses of all types. For international payrolls we work together with activpayroll.
We currently have 100+ payroll clients as our outsourced bureau services are highly recommended due to our high standard of client care, accurate processing and the payroll training we give our motivated staff. Some have been with us since we started our company due to the exceptional quality of our payroll service.
We can assist you with the whole procedure.
- Registration with the tax authorities
- Creation of employment contracts
- Application of the 30% ruling (if applicable)
- Calculation of monthly salary and creation of payslips
- Advice about the available tax free allowances
- Submission of wage tax returns
- Correspondence with involved parties
- Annual accounts, administration and year end statements
- Creation ofpayment schedule for wage tax, national insurances and net wages.
As no business is the same, we take a close look at your requirements before providing you with a quote. We take care in planning the payroll service to suit our clients existing internal systems. Your company will save on internal costs of paperwork, software updates and complex payroll calculations which should be taken into account when evaluating the service. Please contact us for more information.
Click here for more information from the Dutch tax authorities
Step by step guide, posting employees to the Netherlands