Bradford Jacobs are fully registered as a Dutch Payroll Services provider and, by law, any person working within the Netherlands has to be employed by a Dutch Payroll provider. The individual is employed through Bradford Jacobs with income paid in the form of salary, expenses and allowances. The proportion of each depending and resting on individual circumstances.
The rules in the Netherlands change every 12 months. The majority of foreign companies can find it incredibly difficult to keep track of every update and all details. The Dutch Government also holds the employer liable over any mistakes made in the administration of payroll. Many organisations have found that they can reduce costs and improve their competitiveness by outsourcing their payroll services.
Payroll Solutions in Holland
That’s where we come in! We offer payroll solutions specifically for contractors working within the Netherlands. Our service can be tailored to your exact requirements, saving your company time and, more importantly, money! This will also leave you free to fully develop your business.
Dutch Payroll Administration
Bradford Jacobs can take over total responsibility for the administration of your payroll, alongside dealing with the Dutch Tax Office and Social Security Organizations. We are fully specialized in the Dutch labour market, managing numerous contractors for various companies working within Hollands’ borders.
Our fees are highly competitive and very reasonable, especially compared to other firms.
Dutch Payroll Service Includes:
- Registration with the Dutch Tax Office.
- Registration with the UWV (Social Security Organisations).
- Creation of Employment Contracts.
- Application to the 30% ruling (if applicable).
- Calculation of Monthly Salary and Creation of Pay slips.
- Advice about the available Tax Free Allowances.
- Submitting of Wage Tax Returns and Forms for National Insurance.
- Correspondence with Involved Parties.
- Annual Accounts, Administration and Year End Statements.
- Creating Payment Schedules for Wage Tax, National Insurances and Net Wages.
- Personal Income Tax Returns.
Dutch Income Tax
You can find a rough guide to income tax rates in relation to the Netherlands in our guide. This guide also covers the income tax base for residents and non-residents, allowable tax credits and deductions, the special expatriate tax regime, capital income tax rates and information on double taxation treaties.
Income Tax Base For Residents and Non-Residents of Italy
Residents of Holland
are subject to personal income tax on their total income, from all sources worldwide.
Non-residents of Holland
are subject to personal income tax on Italian sourced income only.
Individuals will be regarded as tax residents if:
- Their main home or centre of economic interests is in the Netherlands.
- They are registered within the civil registry for the vast majority of the tax year.
Allowable Deductions and Tax Credits
Employer reimbursement of (international) school fees.
Tax deductions: interest allowance for mortgage interest related to real property in the Netherlands.
Tax exemptions: an employee subject to the 30% tax ruling (if a resident of the Netherlands) can opt for partial non-resident status, which implies that income (assets/savings) may be tax-exempt in the Netherlands.
Special Expatriate Tax Regime
An employee assigned to the Netherlands, who has specific expertise that is not available or that is scarce in the Dutch labour market, is eligible to apply for a tax-exempt allowance of 30% of their salary. A request has to be made to apply the 30% ruling, and this must be completed within four months of employment starting. Once approved by the authorities, the allowance applies for a five years maximum term, paired with an interim test in which to determine if the expatriate continues to satisfy the conditions and qualify for the 30% ruling.
Employees who do not qualify for the 30% ruling still may receive a tax-free reimbursement, of actual extra-territorial expenses.
Capital Tax Rate
- Municipal authorities levy personal property tax on all immovable property based on the council-rated value of property. The tax base for real estate tax is the fair market value as determined by the municipal tax authorities. The council-rated value of an immovable property applies to certain elements of the personal income tax.
Double Taxation Treaties
Countries with Whom a Double Taxation Treaty Have Been Signed
See the list of the conventions signed, on the Dutch Finances Ministry website.
Withholding Taxes Dividends:
Withholding taxes are: 15% for dividends. There are no tax rates on interest and royalties.
The United Kingdom and Belgium are bound by a double taxation treaty.
Taxpayers who derive taxable income in excess of certain limits must file an annual tax return between the 1st of May and the 31st of July of the year following the tax year (by 31 October if filing electronically).
Dutch Social Security
Residents and Non-Residents working in The Netherlands are required by law to pay Social Security contributions on their gross salary and all earned income within the Netherlands.
Social Security contributions are deducted automatically at source, when employed through Bradford Jacobs and deducted automatically at source from the salary.
The Netherlands has two types of Social Security:
- Employee social security contributions
- Employer’s social security contributions
The Contributions fall into Two Categories:
- Social Welfare Benefits
- Social Insurance Benefits
Social Security Contributes to the Following Funds:
- Health Insurance
- Unemployment Insurance
- Pension Contribution
- Disability Insurance
- Sickness Benefit
- Child Care
When you commence work in The Netherlands, you will be required to attend the local Gemente (town hall) in order to receive your BSN number. Everyone who is employed or works within The Netherlands requires a BSN number to work compliantly by law.
Need help with your Payroll? Contact us today to arrange an initial consultation with our team.