Account NL ~ Your complaint specialist in the Netherlands

Dutch Wage Withholding Tax

The Dutch Tax Authorities must be informed when staff is hired from an entrepreneur. After the registration of staff members, a payroll number, tax return letter, and information letters with the relevant sector and the corresponding percentage of the differentiated premium will be forwarded to you. When you start paying wages, wage tax and national insurance contributions must be deducted from it (Dutch Wage Withholding Tax). As an employer, you must withhold wage tax and premiums and transfer them to the Dutch Tax Authority. The payroll tax consists of:

  • Wage tax and national insurance contributions (social insurance contributions to the General Old Age Pensions Act) are collectively referred to as wage withholding tax. This is based on a disk system.
  • Employee insurance premiums-social premium (social premium Unemployment Act, Income according to Labor Capacity Act).
  • Income-related contribution to the Health Insurance Act.

Dutch Wage Withholding Tax

All these charges are based on the same basis. This consists of wages in cash plus wages in kind (gift/addition car, etc.) minus deductions for payroll tax.

It is advisable to file a tax return as soon as you have a definitive answer about tax return data (salary calculation completed). In this way, actual allowances are provided and you avoid disappointments from your employees afterwards. If you have any questions about collecting/processing your data or if you want to file your payroll tax return, we are pleased to help you.