Payroll administration in the Netherlands
Expatax can help you!
You have a company in the Netherlands
If you have a company in the Netherlands where you employ people then these employees will be placed on the Dutch payroll administration. Due to the physical presence all employees automatically fall under the Dutch tax rules.
You send employees to work in the Netherlands
All foreign companies which send people to work on assignment in the Netherlands (or hire employees who already live 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; unless an applicable tax treaty states that the salary will remain taxable in the country of origin, though that is rarely the case because the Dutch tax authorities are very reserved on that matter.
To prevent that the client will have to take care of the payroll, it is important that the foreign employer arranges the payroll administration in the Netherlands and makes 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 Dutch 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 for everybody involved.
Expatax can assist you with the whole procedure, including but not limited to:
- 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 of payment schedule for wage tax, national insurances and net wages
Request a price quotation
As no business is the same, we take a close look at your requirements, we take care in planning the payroll service to suit you or your client’s 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 to discuss the possibilities and receive a quote based on your situation and needs.