Payroll administration in the Netherlands
Dutch payroll administration
If you employ people in the Netherlands or send employees to work here on assignment, then you may have to set up a Dutch payroll administration. Expatax can help you. We can reduce the stress of maintaining a payroll administration in the Netherlands for you. Your company will save on internal costs of paperwork, software updates and complex payroll calculations. More importantly, you will prevent discussions with the Dutch tax authorities and your employees and no penalties. Ease of mind.
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. You can also download our brochure for more information about our services, setting up a payroll administration in the Netherlands and the information which is required to register your company as an employer with the tax authorities and to get your employees on the Dutch payroll.
Be advised that we don’t offer payrolling solutions which means that we can’t act as an employer for individual contractors. We can only take care of the salary administration for foreign or Dutch based employers with employees in the Netherlands. The employer will be our client, not the employee or contractor.
Download our brochure about our payroll Services
Are you confused about Dutch payroll requirements? You don’t know what the regulations in the Netherlands are? You have no idea how your employees can be paid in Holland? How you can stay out of trouble with the tax authorities?
Expatax will help you
Use the contact form above to get in contact with us and ask your questions.
You will feel relieved once we have taken all the stress out of your company’s payroll, knowing that your employees are paid on time and payroll tax returns are filed correctly and on time.
How can an employer reimburse the travel costs and the costs of working from home for the employees tax free and what else can be paid untaxed.
The Return-to-Work fund (“Werkhervattingskas or Whk”) is part of the employee insurance schemes. What is it and how is the premium calculated?
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