Dutch payroll

Blocked account


What is a G-account?

If you make staff available in the Dutch market, the recipient may request you to open a G-account. A G-account is a blocked bank account from which payments can be made only to the tax authorities. The purpose of the G-account is to prevent suppliers (read: employers) from evading payment of wage tax and social security contributions. Furthermore, by paying funds into a G-account in the prescribed manner, the recipient can restrict his liability. This is because the recipient can pay a part of the amount owed to you into your G-account.


Therefore, the recipient pays you for the services of the employee supplied exclusive of the payroll tax and employee insurance contributions presumably owed. The recipient pays the latter amount directly into your G-account.


If a recipient has transferred an amount to your G-account and all the 'rules' have been observed, he may derive a presumption of payment from that transfer. The rules require the recipient to perform various administrative operations. If the recipient pays an amount into your G-account in accordance with the rules, this means that he will not be held liable for that amount if you fail to pay the taxes and contributions. Whether and how a G-account is used, is up to the recipient and the supplier. It is recommended that advance arrangements be made on this point.


Opening a G-account

You can open a G-account by concluding a 'recipient's liability G-account contract'. There are three parties to such a contract:


  • you, the supplier;
  • the bank with which the G-account is opened;
  • the tax authorities.


You can apply for a G-account by completing the 'Application for recipient's liability G-account' form. This form can be obtained from the tax authorities. If Expatax takes care of your payroll administration we can arrange this for you.


Instead of a G-account the client can also require an audit from a certified public accountant confirming that the payroll calculations were made based on the right assumptions and that the requirements were met. Expatax can perform these audits.