Frequently Asked Questions (FAQ)

Employees of International Organization (embassy staff included) may qualify for the Dutch childcare allowance. If you and your partner or spouse, living with you at the same address, are engaged in a gainfull occupation and you make use of formal childcare in the Netherlands you can apply for an allowance. Contact our Blue Umbrella staff for more information.

The Dutch Tax Authorities send out two types of letters. One with their logo printed in Blue and one with their logo printed in Red. The former is about letters which are send out by the tax unit for income tax. The latter is used by the tax unit for the childcare allowance.

If you have a domestic or private servant or a nanny and you expect this "blue" letter to be about your situatie as employer, please contact Blue Umbrella. Usually, these letters are about declaring income tax for your servant or nanny.

All tax letters with the red logo is about your childcare allowance. Every time Blue Umbrella contacts the tax office to file for a change, you receive a confirmation letter from the tax office. We advise you to retain a copy of those letters which contain the subject header "beschikking" or "herziene beschikking". Please contact Blue Umbrella if you are unsure what to do with the letter. 

Dutch childcare allowance (“kinderopvangtoeslag”) is a subsidy provided by the Dutch tax office to help working families meet the cost of childcare in the Netherlands.  The tax office provides an allowance for each child receiving professional childcare.  It is calculated according to each family’s projected total monthly childcare costs and expected household income for that fiscal year.  Proof of each family’s actual childcare costs and annual income is required at the end of the fiscal year.

The childcare allowance can be used to subsidise any form of professional childcare, including daycare centers (crèches), after school care, private childminders and nannies.

The right to receive Dutch childcare allowance is not limited to Dutch nationals.  However, to apply for and receive the allowance the Dutch tax office requires all paperwork to be completed in Dutch.

Blue Daycare is a service offered by Blue Umbrella to help families within the expat community apply for and receive the childcare allowance.  Parents with children attending a daycare center (crèche) can expect to save up to 80 percent of the cost of their childcare.

The Dutch Lower and Upper House voted in favor to change the per 1 January 2010. The changes applies mainly to private childcare givers (gastouder) who provide childcare at their home or the home of the parents.

Important parts of the Childcare Act will be modified, effective 1 January 2010. The modifications have a significant impact on the allowance provided to parents who hire a childcare giver (“gastouder”) at his or her home address. This subject is particularly relevant for all Blue Home and Blue Payroll subscribers.

The Dutch Lower House and the Upper House (Senate) accepted the modifications as proposed by the Cabinet. Therefore, the Childcare Act changes come into effect on 1 January 2010. We have summarized the main modifications for you below.

Qualification requirements for childcare givers (“gastouder”):

• Childcare givers need to show proof of a relevant training and qualification; 
• Experienced childcare givers who do not have a formal qualification can opt for an experience test. The test will be examined by an officially appointed marker;
• Childcare givers do have until the end of 2010 to meet the new criteria;  
• A certified first aid course for childcare givers will become mandatory.

Approved childcare locations:

• Childcare givers are allowed to work at either the home address of the parent or at his or her own home address;
• Childcare givers cannot work on more than one home address;
• Parents who employ a living-in childcare giver are no longer eligible for childcare allowance. Registration at the “Gemeentelijke Basisadministratie (GBA)” will form the basis to check upon this requirement;
• An inspector of the municipality may visit the location where childcare takes place.

Childcare allowance:

• The childcare allowance for privately employed childcare givers will be stopped as of 1 January 2010 until all qualification requirements are met. The childcare allowance will be provided retro-actively when all requirements are met before the end of 2010;
• The maximum hourly rate for privately employed childcare givers will go down from € 6.10 to € 5.00 per hour;
• The childcare givers are registered centrally by the state;
• Up to a maximum of 230 hours per month will be reimbursed by the Tax Office, regardless of the type of care (crèche of privately employed childcare giver).

These changes to the Childcare Act increases the requirements for the childcare giver you employ in 2010. Parents subscribing to Blue Home or Blue Payroll will receive less childcare allowance in 2010. Some, such as parents employing a living-in childminder, may loose their childcare allowance altogether.

Dutch Child Benefit

The Dutch Child Benefit - not to be confused for Ducth Childcare Allowance - is money from the Dutch government paid towards the expenses of raising a child. If you live or work in the Netherlands and you have a child you are eligible to receive this benefit.

Can you get Dutch child benefit?
If you have children up to 18 years old, the government will help you with the costs of bringing them up and caring for them. This financial support is called child benefit (kinderbijslag). The rules on who qualifies for the child benefit and how much child benefit will be paid are set down in the National Child Benefits Act (AKW).

You can get the child benefit if the following applies:
You qualify for the child benefit if you for bring-up and care for a child of your own, but also:

• an adopted child;
• a foster child;
• a stepchild;
• another child you bring-up and care for as if it were your own child

The amount of the child benefit
The amount of your child benefit depends on your child's age. Children aged 6 and over qualify for a higher child benefit rate. The child benefit will increase again when your child turns 12. If your child does not live at home with you, for example, because he or she is handicapped, you may face high expenses. In such cases, child benefit may be payable at twice the basic rate.  

Receiving child benefit
Child benefit is paid on a quarterly basis, i.e. every three months. The first payment you will receive will be for the next quarter after your child's birthday. In other words, your child benefit will start in January, April, July or October. The SVB (Social Security Bank) pays child benefit after the end of each quarter.

However, if you adopt a child or if you have just come to live in the Netherlands, your child benefit may start at a different time.
Child or children under 18, you will get Dutch child benefit. Dutch child benefit is paid by the SVB.

How to claim child benefit
It is very easy to claim child benefit for children who are born in the Netherlands. When your first child is born, and you register the birth with your local authorities (gemeente / city hall), they will inform us of the birth of your child. We will then send you a claim form within 2-4 weeks.

Child benefit adjusted automatically when further children are born
If you are receiving child benefit and a further child is born to you in the Netherlands, you do not need to do anything. We will adjust your child benefit automatically. You will be sent a letter stating the new amount. If you live outside the Netherlands when your child is born, you must inform us of the birth of your child.

When must you report the birth of your child to us yourself?
You must inform us of the birth of your child yourself if you:

• do not live in the Netherlands;
• come to live or work in the Netherlands with one or more children;
• adopt a child;
• do not report the birth of your child to your local authorities within one month

If you contact the SVB, they will send you a claim form straight away.

Claiming child benefit: via the internet or by post
You can submit a claim via the internet or by post. If you claim child benefit via the internet, you will be informed about your child benefit sooner.

How much child benefit will you get?
The amount of your child benefit depends on the age of your child. You will get a higher amount when your child turns 6. The child benefit will increase again when your child turns 12. The amounts are adjusted every year.

Child benefit at twice the basic rate if you have high expenses
If your child does not live with you, for example, because he or she is disabled, and you are faced with high expenses, you may be eligible for child benefit at twice the basic rate. You can read more about this under 'your child is leaving home (temporarily)'.

Higher amount for children born before 1995
The amount of child benefit paid for children born before 1 January 1995 depends on the number of children you get child benefit for. The more children for whom you get child benefit, the higher the amount will be for your children born before 1995.

Your childminder needs to obtain an Early Years First Aid Certificate from a recognized institute in the Netherlands. An Early Years First Aid Course is already available in Dutch. An English version is being developed.

Your childminder also needs to obtain a Home-based Childcare diploma. Blue Umbrella works with NIGOS to provide training and examination for childminders. Unfortunately, this training and examination is only available in Dutch.  See also FAQs from NIGOS.

Your childminder may be exempt from the the Home-based Childcare diploma if he or she has an equivalant (foreign) diploma.  

The childcare allowance you receive from the Dutch Tax Office in 2010 is provided on a provisional basis. Only when your childminder is registered, your allowance entitlement is confirmed. Your childminder needs to be registered before 1 January 2011.

For the Dutch version of the home-based childcare first aid course, Blue Umbrella has entered into an agreement with the First Aid provider "Eerste-Hulp-in-Huis".

If your childminder has a basic understanding of Dutch she can register herself for the Dutch version of the home-based childcare course. This course is comprised of two sessions, an online learning session and a practical training evening.

For more information and registration for this course, download the Dutch information brochure (click here). Use the coupon code to obtain the special Blue Umbrella discount for this course!

Any citizen of an EEA member country can work and live in the Netherlands, though certain conditions must be met and exceptions might apply. Though there are numerous ways to find jobs, the Internet is becoming the dominant medium. 'Short and businesslike' are the keywords for your CV and application letter. In addition, the candidate's motivation is one of the basic selection criteria for Dutch recruiters. Last but not least: make sure to check if your educational diploma's and degree's are valid in the Netherlands.

Who can apply for jobs in the Netherlands?
EEA nationals
In principle, the EU & European Economic Area (EEA) allow for the free movement of money, goods, services and persons. This means that its inhabitants are allowed to live and work in any other member state. This free movement of persons already exists between most of the member states of the EU/EEA. These are currently: Austria, Belgium, Cyprus, Denmark, Germany, Finland, France, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxemburg, Malta, the Netherlands, Norway, Portugal, Spain, Sweden, United Kingdom, Poland, Estonia, Hungary, Latvia, Lithuania, Slovenia, Slovakia and the Czech Republic.

EEA nationals working in the Netherlands have the same rights as nationals of this country regarding pay, working conditions, access to housing, vocational training, social security and trade union membership. Families and immediate dependants are entitled to join them and have similar rights.

Citizen Service Number (formerly Sofinumber)
In order to work in the Netherlands you need a Citizen Service Number (Burger Servicenummer or, in short, BSN) after January 1st, 2007. This number means you are registered in the tax and social security system. You can apply for a Citizen Service Number at the local office of the Tax and Customs Administration.

If you work in paid employment, your employer will deduct social security contributions and tax from your wage and pay these amounts to the concerned authorities. This payment occurs in advance of the income tax return, which you have to complete once a year. For more information and the addresses of tax offices visit www.belastingdienst.nl or phone 0800 0543 (from the Netherlands) or +31 555 38 53 85 (from abroad).

Residence Permit and Identification
Citizens from EU/EEA member states, do not need a residence permit in order to be allowed to work in the Netherlands. Once you have been in the Netherlands for more than 3 months, you should register with the IND. For more information consult the IND website www.ind.nl . On this website you will find a 'residence wizard' through which you can find out about the rules for residency in the Netherlands for yourself and any family members.

Even if not directly needed, a residence permit can come in handy: sometimes employers ask for it before they enter into a contract with you, banks also ask for it when you open a bank account and other official institutions ask for this document as well. You can apply for a residence permit at the IND office nearest to where you are residing. As of 1 January 2005 everyone aged 14 or older must be able to submit valid identification documents to prove his or her identity. If you are a national of one of the EU member states or of the European Economic Area, you can identify yourself with a passport or an EU/EEA aliens document.

If you are a national of Bulgaria or Romania you are required to apply for a residence permit (proof of lawfull residence).


 

1. Temporary labour contract;
2. Permanent labour contract;
3. Contract with an employment agency;
4. Self Employed

Temporary labour contract
A temporary contract has a starting date and an ending date. The contract will end on the agreed date without a dismissal procedure. We strongly advise you to make sure that you get a contract in writing, although a verbal agreement is also valid. The employer has the obligation to inform you about the main issues covered in the labour contract in writing within one month after the commencement of the contract. Within the legal limits, employers and employees are free to decide what will be covered in the labour contract.

Trial period
The trial period is a very common part of a (temporary) contract with the employer. A trial period will apply for both parties and needs to be agreed in writing. If the duration of the temporary contract is less than two years, the maximum trial period is one month. Exceptions can only be made when a Collective Labour Agreement agrees to this. The legal maximum trial period is never any longer than two months. An extension of this period is not possible.

Term of notice
A temporary labour contract will end automatically and legally on the date agreed. This means that there is no dismissal procedure involved. A different situation occurs if both parties or one of them want to end the contract before the agreed date. In this case, the option for termination of the contract before the final date has to be part of the contract. If the employer wants to end the contract before the date agreed, he or she needs to follow a legal dismissal procedure. In this case, it is advisable to contact the local Employment Office (WERKbedrijf or CWI) to get further information.

Repeated contracts with the same employer
If four temporary contracts with the same employer have been agreed within less than a three-month break between each contract, the rules for a permanent contract will start to apply. If this is the case, please contact the local office of WERKbedrijf or CWI for more information.

Permanent labour contract
The most important difference between a temporary labour contract and a permanent labour contract is the fact that a permanent labour contract has no ending date. This means there is no indication of any intention to limit the duration of the contract - such as 'for the duration of the project'. Hence, and unlike temporary labour contracts, there is no mention of an ending date of the contract in a permanent contract. Also the 'term of notice' will be different for a permanent contract, since your legal position is different. The differences concerning termination of a permanent labour contract are explained below:

A permanent labour contract can be ended by one of the parties. The legal terms of notice need to be respected.

The rules are different for employers and employees. The employee has the legal right to end the contract without a procedure, but he or she has to respect the legal and agreed period, which usually is a one-month notice minimum.

The employer needs to apply for a dismissal permit. The term of notice depends on the duration of the contract on the day the employer applies for the dismissal permit. We advise you to contact the local office of WERKbedrijf or CWI for more information if you are confronted with this situation. 

Contract with an employment agency
The contract with an employment agency (uitzendbureau) differs fundamentally from a contract with an employer as described above. In the temp construction the employment agency is your legal employer while you work in a company that hires you from the employment agency. In particular, your protection against dismissal during a certain temp period is not regulated. This on the other hand means that you and the company you are working for can terminate the employment at any given time during the agreed employment period. Employment agencies have their own Collective Labour Agreement. There is an 'Allocation of Workers by Intermediaries Act' that regulates issues related to employment agencies e.g.:

• Employment agency employers are prohibited from charging temporary workers money (or any other consideration) for being given temporary work.
• Employment agencies must inform temps in writing about the working conditions at the place of work in advance.
  

1. the Zorgverzekeringswet (Zvw, Health Insurance Act) covers the costs of 'normal' medical care such as G.P. visits, hospitalisation and pharmacy prescriptions. The Zvw is also referred to as basic insurance;
2. the Algemene Wet Bijzondere Ziektekosten (AWBZ, General Exceptional Medical Expenses Act) covers the costs of exceptional and in particular expensive care, such as long-term nursing and home-care. The AWBZ is one of the national insurances in the Netherlands.

To sign up for the Blue Daycare subscription, you have to agree with the Blue Umbrella terms and conditions. You receive an agreement which we need you to sign. 
 
Once we have received your signed agreement, Blue Umbrella starts to file for your childcare allowance. We will contact your childcare center and let them know that they can charge us for your childcare cost. You receive from us a notification for your parental contribution (see under "What is my parental contribution"). 

To sign up for the Blue Payroll subscription, you have to agree with the Blue Umbrella terms and conditions. You receive an agreement which we need you to sign. 
 
Once we have received your signed agreement, Blue Umbrella starts to file for your childcare allowance. We will contact the Dutch Tax Authorities to establish an employer's account. Blue Umbrella sets up the complete payroll administration (labor contract, pay slips, sick leave insurance, tax declarations, Board&Lodging, etc.). We contact your child minder to file for a police check ("Verklaring Omtrent het Gedrag"). Blue Umbrella will contact you for a home visit. Blue Umbrella pays your child minder based upon the labor contract between you and your child minder. You receive from us a notification for your parental contribution (see under "What is my parental contribution").

To sign up for the Blue Home subscription, you have to agree with the Blue Umbrella terms and conditions. You receive an agreement which we need you to sign. 
 
Once we have received your signed agreement, Blue Umbrella starts to file for your childcare allowance. We will contact your child minder to file for a police check ("Verklaring Omtrent het Gedrag"). Blue Umbrella will contact you for a home visit. Blue Umbrella pays your child minder based upon time&cost records we receive from you. You receive from us a notification for your parental contribution (see under "What is my parental contribution"). 

A Certificate of Good Conduct is required if you have a childminder at home for which your want to receive childcare allowance. Blue Umbrella issues this form to your childminder. She is requested to sign the form and hand it in at the "Gemeentelijke Basisadministratie (GBA)" in her residential city. 

More information is to be found in this brochure .

If you forgot your username of password for your MyBlue page, click here to retrieve your username and password. Please note that the e-mail address used for your Blue Umbrella registration is required.

If you continue experiencing access or login problems to your MyBlue page, pleace contact Blue Umbrella.

Under the new Health Insurance Act (Zorgverzekeringswet), all residents of the Netherlands are obliged to take out a health insurance.

The system is a private health insurance with social conditions. The system is operated by private health insurance companies; the insurers are obliged to accept every resident in their area of activity. A system of risk equalisation enables the acceptance obligation and prevents direct or indirect risk selection.

The insured pay a nominal premium to the health insurer. Everyone with the same policy will pay the same insurance premium. The Health Insurance Act also provides for an income-related contribution to be paid by the insured. Employers contribute by making a compulsory payment towards the income-related insurance contribution of their employees.

Essential healthcare
The health insurance comprises a standard package of essential healthcare. The package provides essential curative care tested against the criteria of demonstrable efficacy, cost effectiveness and the need for collective financing.

Compulsory excess
Untill 2008, everyone who paid health insurance premiums was entitled to a rebate of up to 255 euros if no claim was made during the preceding year. The scheme was known as the ‘no-claim rebate rule’.

In 2008 the no-claims scheme was replaced by a compulsory excess of 150 euros a year. People with unavoidable long-term health expenses, for example due to chronic illness or disability, are compensated financially.

Like the no-claims bonus, the compulsory excess only applies to people aged 18 and over, and the same forms of healthcare are also excluded. The no-claims scheme still covers bills for 2007, which means the bonus for 2007 will be paid out in March 2008. Healthcare insurers will still be entitled to reclaim incorrectly made payments until 1 April 2009.

The Immigration and Naturalisation Service (IND) is entitled, on behalf of the State Secretary of Justice, to pronounce a foreign national undesirable pursuant to Article 67 of the Aliens Act 2000. A pronouncement of undesirability is an (administrative) measure for the purpose of preventing foreign nationals who are not or are no longer permitted to stay in the Netherlands from entering or remaining in the country.
In most cases, this concerns foreign nationals who have committed an offence.
The pronouncement of undesirability makes it an offence for the foreign national to reside in or return to the Netherlands without authorisation.

Balancing of interests
The assessment (on the part of the IND) of whether a foreign national will be pronounced undesirable takes into account the interests of the parties involved. In this respect, national interest (public order and national security) is examined on the one hand, and the interests of the foreign national and (if applicable) his or her family on the other hand. 

Immediate effect
A decision in favour of a pronouncement of undesirability is issued to the foreign national in person by the police (together with a leaflet regarding pronouncement of undesirability). If it is not possible to issue the decision in person, the decision shall in any event be published in the Dutch Government Gazette. 
A decision in favour of a pronouncement of undesirability shall take immediate effect. The foreign national who has been pronounced undesirable must immediately leave the Netherlands of his or her own accord (obligation to leave the country independently). 
Any foreign national who stays in the Netherlands whilst he or she is aware or may reasonably assume that he or she has been pronounced undesirable, is guilty of an offence pursuant to Article 197 of the Penal Code and may be sentenced to a maximum of six months’ imprisonment.
Once the prison sentence has been served, the foreign national who has been pronounced undesirable may be removed, if the identity and nationality of the foreign national have been established and (replacement) travel documents are available.
A foreign national may lodge an application for review in respect of a pronouncement of undesirability. The foreign national shall not, however, be permitted to stay in the Netherlands pending the outcome of such an application. If a foreign national has definitively been pronounced undesirable and has left the Netherlands, after a given period he or she may submit an application in writing for the withdrawal of the pronouncement of undesirability.

Schengen Information System
As the aim of the pronouncement of undesirability is to prohibit certain foreign nationals from entering the Netherlands, refusal of permission to enter the Netherlands is signalled in the Schengen Information System (SIS). This means that for such time that the pronouncement of undesirability is in force, the foreign national will not be able to obtain access to the countries that form part of the Schengen area.
 

We regularly get questions from former Dutch nationals who want to settle in the Netherlands again. This is possible for former Dutch nationals that:

Anyone falling in any of the above categories must not constitute a hazard for public order or national security. In addition, some of the above categories must also meet a few additional conditions. The website www.ind.nl gives more information.

Do I need a provisional residence permit?
Only former Dutch nationals of the second category (born outside the Netherlands, aged over 18 and evidence that they have special ties with the Netherlands) must obtain a provisional residence permit in order to be able to enter the Netherlands (in order to apply subsequently for a temporary/permanent residence permit for the purpose of re-entry) – if they are nationals of a country from which citizens need to obtain a provisional residence permit. Former Dutch nationals of the other two categories do not require a provisional residence permit, and can simply enter Dutch territory and apply for a residence permit. The website www.ind.nl gives more information.

Becoming a Dutch national again 
Former Dutch nationals born and raised in the Netherlands may re-obtain Dutch nationality under a simplified procedure (on the basis of a residence permit for the purpose of re-entry):

Integration obligation 
You are exempt from the integration obligation if you are younger than 16, aged 65 or over. You are also exempt from the obligation if you resided at least eight years in the Netherlands while you were obliged to attend school, or if you have a Dutch secondary school certificate. For more information on the obligation to integrate, please visit: www.inburgeren.nl 

The Protocol Department of the Ministry of Foreign Affairs publishes a Protocol Guide for international organisations in the Netherlands to help recently arrived staff of international organisations with questions about their stay in the Netherlands.

Written in cooperation with other government bodies, it contains information on protocol matters, such as the arrival of members of missions and their privileges and immunities. It also answers frequently asked questions, such as: 'How do I apply for an identity card?' 'What should I do if I lose my identity card?' 'What happens if my family comes to the Netherlands?' 'What taxes am I exempt from?' 'What are my immunities?' and 'What happens if I want to import my car or buy a new one?' A list of organisations that can be approached directly to sort out certain matters is at the end of the guide.

• To download the Protocol Guide (pdf) in English, click here 
  
• To download the Protocol Guide (pdf) in French, click here
  

The Protocol Department of the Ministry of Foreign Affairs publishes a Protocol Guide for missions accredited to the Netherlands to help recently arrived embassy and consular staff with questions about their stay in the Netherlands.

Written in cooperation with other government bodies, the 2008 edition contains information on protocol matters, such as the arrival of members of missions and their privileges and immunities. It also answers frequently asked questions, such as: 'How do I apply for an identity card?' 'What should I do if I lose my identity card?' 'What happens if my family comes to the Netherlands?' 'What taxes am I exempt from?' 'What are my immunities?' and 'What happens if I want to import my car or buy a new one?' A list of organisations that can be approached directly to sort out certain matters is at the end of the guide.

• To download the Protocol Guide (pdf) click here
  

If you want to employ a child minder or servant you will be regarded as a withholding agent /contribution payer in the Netherlands. In that case, you will have to withhold wage tax and national insurance contributions from the wages of the employees made available. This tax and these contributions should be paid to the tax office in the Netherlands. In addition, you will have to pay employee insurance contributions to the Employee Insurance Implementing Body (Uitvoering Werknemersverzekeringen, or UWV). 

We can assist you with the whole procedure and take care of your payroll through our Blue Payroll service, which includes:

• Registration with the tax office (UWV is a part of the tax office since 2006)
  
• Creating contracts
  
• Calculation of monthly salary and creation of payslips
  
• Advice about the available tax free allowances
  
• Submitting of wage tax returns and forms for the national insurance
  
• Correspondence with involved parties
  
• Annual accounts, administration and year end statements 
• Creating payment schedule for wage tax, national insurances and net wages. 

Withholding obligation for foreign suppliers
Under Dutch tax law, every supplier of staff is the withholding agent of the wage tax, national insurance and employee insurance contributions owed in the Netherlands. This rule (also) applies to all foreign employers and foreign employment agencies that make staff available in the Dutch labour market. The withholding obligation in the Netherlands will arise regardless of the way in which an employee is supplied. As the supplier, you will have to withhold wage tax and national insurance contributions from the wages. In principle, these amounts are withheld from the wages as one amount, known as payroll tax.

Wage tax
If you pay wages to an employee, you will have to withhold wage tax and pay this tax to the tax office. Normally, the wage tax is an advance levy in respect of the income tax owed. This means that the wage tax already paid is usually offset against the amount of income tax owed by the employee.

National insurance contributions
Like wage tax, national insurance contributions are levied on the employee's wages. If you pay wages, you will have to withhold national insurance contributions from the employee's wages and pay these contributions to the tax office. The contributions are made to cover the following three insurance schemes:

• statutory pension insurance scheme (AOW);
• surviving dependants' insurance scheme (ANW);
• exceptional medical expenses insurance scheme (AWBZ).

Most of the national insurance schemes are administered by the Social Insurance Agency (Sociale Verzekeringsbank, or SVB). The SVB is not responsible for actually levying and collecting the contributions (this is the task of the tax office), but sees to the implementation of the national insurance schemes. As a foreign supplier, you are not in direct contact with the SVB. Your (former) employee should contact the SVB of his/her own accord if he/she believes himself/ herself to be entitled to benefits under any of the three above-mentioned insurance schemes.

Liability for wage tax or national insurance contributions may not apply

The fact that a foreign employee works in the Netherlands does not mean that the Netherlands is always entitled to levy taxes or social security contributions. Perhaps only wage tax is owed, or only national insurance contributions. This is because various regulations apply.

In principle, Dutch tax law provides that wage tax is owed in the Netherlands. However, if the Netherlands has concluded a tax treaty with the employee's country of residence, this tax treaty will provide whether the right to impose tax belongs to the Netherlands or to the employee's country of residence.

The social security system under which an employee is insured is determined either by a social security treaty or by EC Regulation 1408/71.

Because two different types of rule are involved, it is possible that wage tax should be paid in the Netherlands under a tax treaty, while the same employee is insured and liable for social security contributions in another country (usually the country of residence) pursuant to a social security treaty or the EC regulation.

Obligations of a foreign supplier

If you make staff available in the Dutch labour market, you should:

• Register as an employer/withholding agent with the tax office;
• Register as an employer/withholding agent with the UWV;
• Establish the employee's identity;
• Issue a wage tax statement to the employee.

In addition, you will be responsible for the withholding and payment of wage tax, national insurance contributions (together also known as payroll tax) and employee insurance contributions. For this purpose, you will have to set up wage records. Obviously, you will have to know from which amount you should withhold payroll tax. This also involves:

• Setting up and keeping wage records;
• Calculating the payroll tax;
• Completing wage tax cards.

The payroll taxes are composed of the following elements:

• wage tax
• national insurance contributions
• employed persons’ insurance scheme contribution
• income-dependent Care Insurance Act contribution

• Old Age Pensions Act (AOW)
• Surviving Dependants Act (Anw)
• Exceptional Medical Expenses Act (AWBZ)
• General Child Benefit Act (AKW)

The employer withholds the national insurance contributions from the wages and pays them to the Tax and Customs Administration.

Employed persons’ insurance schemes contributions
Employed persons’ insurance schemes contributions are obligatory national insurance schemes that insure employees against the financial implications of illness, incapacity for work and unemployment.

The employed persons’ insurance schemes include:

• Sickness Benefits Act (ZW)
• Invalidity Insurance Act (WAO) / Work and Income Capacity for Work Act (WIA)
• Unemployment Act (WW)

The contribution is composed of an employer’s and an employee’s part. The employer pays both the employer’s and the employee’s part to the Tax and Customs Administration.

Income-dependent Care Insurance Act contribution
Care insurance is an obligatory social insurance against the financial implications of care in the case of illness. The care insurance is effective from 1 January 2006 and replaces the Health Insurance Fund Act and the private health insurance schemes. Everyone who is qualified as an insured person for the purposes of the Exceptional Medical Expenses Act is also insured by this care insurance.

The employer withholds the Care Insurance Act contributions from the wages and pays them to the Tax and Customs Administration. The employer must reimburse the employee for that contribution. For tax purposes this reimbursement is qualified as wages.

Babies are expensive. Nappies, clothes, the pram … all these things cost money. The Dutch government provides for child benefit to help you with the costs of bringing up your child. The "Sociale Verzekeringsbank" (SVB) is the organization that pays your child benefit. 

If you live or work in the Netherlands, you will be entitled to receive Dutch child benefit. Child benefit is paid after the end of each quarter for children up to age 18. 

Claiming child benefit
Claiming child benefit is straightforward. A claim pack will be sent to you automatically if you live in the Netherlands. This is because the municipality where you live will inform the SVB of your and your new baby’s details after you register the birth with them.

The SVB will also provide you with a code that you can use to submit your claim via the internet. If you do not have an internet connection, you can fill in a paper claim form, which you will find in the claim pack.

Your municipality will also inform the SVB if there are any further additions to your family. The SVB will then send you a letter about your new child benefit entitlement.  

If you have just come to live in the Netherlands, or have adopted a child, or want to claim child benefit at another point in time, you can request a claim form from the SVB. The SVB office serving your area will then take a decision on your entitlement. 

See also: 

• Child benefit for children aged 16 and 17
• Your child is living away from home
  

When a child turns 16, there is a change in the qualifying rules for child benefit. You can still receive child benefit for children aged 16 or over, but the qualifying conditions are different from those for younger children. For this category, additional conditions apply concerning the child’s education and income. It is therefore important that you notify the "Sociale Verzekeringsbank" (SVB) of any changes in your family.

Your child goes to school
If your child goes to school and has at least 213 hours of lessons or practical classes per quarter, and the education is regular full-time education, you will continue to receive child benefit as usual. If your child pursues higher vocational training or goes to university, however, your child benefit will be stopped and your child can apply for a student loan or grant.

If your child stops pursuing the course or interrupts the course for longer than 6 months, the child benefit may also be stopped. The same applies if your child switches from full-time to part-time education. In that case, you may still be entitled to child benefit if your child qualifies as unemployed or incapacitated for work.

Your child is unemployed or disabled for work
You can receive child benefit for children who are unemployed (or partly unemployed). In that case, your child must register as a job-seeker within a month of becoming unemployed. NB: If your child ends or interrupts his or her course of education, he or she must also register as a job-seeker within one month. By "register as a job-seeker”, we mean with the CWI Centre for Work and Income for at least 19 hours a week. In that situation, your child cannot turn down a job offer.

Children who are disabled for work can qualify for child benefit as well.

Your child has a job
Children who go to school or who are unemployed are allowed to earn a certain amount per quarter. If your child’s earnings exceed that amount, you are not entitled to child benefit for that quarter.

If your child lives at home with you, and earns less than € 1,240 net per quarter, this will not affect your child benefit. If your child lives away from home, he or she can earn up to € 1,754 per quarter without this affecting your child benefit.

See also:

• Child benefit
• Your child is living away from home
  

It is also possible to receive child benefit for children who live away from home, but for this category the "Sociale Verzekeringsbank" (SVB) will need more information from you. For children who live at home, the minimum costs that parents incur are easy to establish. In the case of children living away from home, however, these costs can vary considerably. It is quite possible that you have spend more than what you spend for a child living at home. In such cases, you may qualify for a higher child benefit rate.

For this reason, the SVB needs to know how much you contribute to the cost of providing for your child that lives away from home. This means that you may be asked to provide evidence of the expenses you incur.

See also: 

• Child benefit for children aged 16 and 17
• Child benefit

Disabled children often need extra care. If your child lives at home, you may qualify for a care allowance (TOG) to help you provide that extra care.

For the 1st and 2nd quarters of 2008, the allowance is € 206.24. As from 1 July 2008, the allowance is € 210.08 per quarter. This amount will first be paid for the 3rd quarter of 2008. The allowance is paid after the end of the quarter concerned.

If you wish to claim a TOG care allowance, ask for a claim pack from the TOG department of the SVB ("Sociale Verzekeringsbank") office in Roermond, telephone number +31(0)475 368040.

Main qualifying conditions
You can qualify for a care allowance if you live in the Netherlands and are the parent or carer of a handicapped child aged from 3 to 17 who lives at home with you.

A child is considered disabled for the purposes of the TOG scheme if he or she:

• has a physical or mental illness or disorder;
• which causes restrictions (the handicap);
• resulting in the child being substantially more dependent on care, assistance and supervision than a healthy child of the same age.

• personal hygiene;
• continence / incontinence;
• ability to eat and drink unaided;
• mobility;
• medical assistance (does the child need assistance in taking medicine, etc.);
• behaviour;
• communication;
• assistance needed inside and outside the home;
• the extent to which the child can keep himself or herself occupied.

For income tax purposes 3 types of taxable income are distinguished. These income types have been classified into 3 so-called boxes:

1. Box 1: taxable income from employment and home ownership;
2. Box 2: taxable income from a substantial interest;
3. Box 3: taxable income from savings and investments;

 Box 1: Taxable income from employment and home ownership:

• Wages, pension payments, social benefits;
• Income from other activities;
• Company car;
• Profits from business activities;
• Owner-occupied property;
• Negative expenditure on income insurance;
• Negative personal allowance;
• Periodic benefits; 

Box 2: Taxable income from a substantial interest:

• Income from shares and profit-sharing certificates that are part of a substantial interest;
• Income from the disposal of these shares and profit-sharing certificates;
  

Box 3: Taxable income from savings and investments:

• Notional yield (4 per cent) on capital (assets minus liabilities): the income from savings and investments; 

 See also:

• Deductible expenditure Box 1; 
• Deductible expenditure Box 2;  
• Deductible expenditure Box 3;    
  

Tax Rate Box 1: Progressive, with a maximum rate of 52 per cent

Tax Rate Box 2: 25 per cent

Tax Rate Box 3: 30 per cent 

Income in several boxes
If your income falls into two or three different boxes, its components will be treated and – where possible – taxed separately. This means that:

• In general, every type of income falls into one particular box. Therefore, your income cannot be taxed twice;
• Different tax rates are applicable to the taxable income in Boxes 1, 2 and 3;
• Any negative income (loss) in one box cannot be offset against positive income in another box. A special facility applies to losses in Box 2; 

Deductible expenditure
Deductible expenditure that is directly related to revenue in a particular box will reduce the income in that box.

Example

The income from an owner-occupied property falls in Box 1. If you contracted a loan to purchase the owner-occupied property, the interest paid is deducted from the income from the property. Both the property and the loan pertain to Box 1.

Some types of deductible expenditure are not directly related to particular revenue. Examples of such expenditure are donations and extraordinary illness-related expenses. These types of deductible expenditure together constitute the personal allowance. The personal allowance can be deducted from your income in Box 1. Any remaining expenses can be deducted in Box 3 and Box 2.

Calculation of the tax owed
The tax you owe on the income in the three boxes is levied as one amount with any national insurance contributions owed. This amount is reduced by the tax credits to which you are entitled. More information can be found at:

• The levy of national insurance contributions;
• Tax credits;

Throughout this text, reference is made to various types of income. The terms 'income from a substantial interest' and 'income from savings and investments' are defined in the Glossary (see under Glossary of tax administration definitions).
 

Wages, pension payments and social benefits are taxed in Box 1. When effecting payment, the employer/benefits agency usually withholds wage tax and national insurance contributions (together known as payroll tax), as well as the income-related contribution towards the health care insurance scheme. The payroll tax is offset against the income tax and national insurance contributions eventually owed. In determining the amount of payroll tax owed, the following tax credits – where applicable – are already taken into account:

• General tax credit;
• Employed person's tax credit;
• Young disabled person's tax credit;
• Elderly person's tax credit;
• Single elderly person's tax credit

Everyone has the right to credits on taxes to be paid: the general tax credit. On top of that, you may receive additional credits.

Tax credits consist of a national insurance contributions component and a tax component (not the elderly person’s tax credit and the single elderly person’s tax credit). The component that you will receive depends on your situation.

The right to the national Insurance component
If you have compulsory insurance in The Netherlands, then you are entitled to the national insurance component of your tax credit. If you are not insured for national insurance, then you are not entitled to this. If you want to know when you are or are not insured and how the national insurance is levied, please see The levying of national insurance contributions.

The right to the tax component
If you live abroad and are a taxpayer in The Netherlands, then you are not automatically entitled to the tax component of your tax credit. You are only entitled to this if you choose to be treated as a resident taxpayer, or if you are a resident of Germany, Belgium, Suriname, the Dutch Antilles or Aruba.

• Allowance for German residents;
• Allowance for Belgian residents;
• Allowance for residence of Suriname, the Dutch Antilles and Aruba;
  

You are always entitled to the tax component of the employed person’s tax credit, even if you do not choose to be treated as a resident tax payer. You must then satisfy the criteria for the employed person’s tax credit.

Composition of tax credits
In the Netherlands, the Tax and Customs Administration levies the income tax and the national insurance contributions for AOW, ANW and AWBZ as one aggregate amount. For this reason, the tax credits relate to both income tax and national insurance contributions.

For 2008, the 33.60 per cent levy you owe in bracket 1 on your Box 1 income (see Tax rates) consists of:

• 2.45 per cent in income tax
• 17.90 per cent in AOW contributions
• 1.10 per cent in ANW contributions
• 12.15 per cent in AWBZ contributions

Example

In 2008, the general tax credit amounts to € 2,074. For persons under 65, the component of the general tax credit that relates to income tax amounts to 2.45/33.60 part of € 2,074 = € 151 in 2008.

Maximum size of the tax credit
The tax credit cannot exceed the combined income levy. The combined income levy is the total amount of taxes and national insurance contributions that you owe on the taxable income in Boxes 1, 2 and 3.


 

• receive benefits under the Invalidity Insurance (Young Disabled Persons) Act (the so-called Wajong benefits);
• are entitled to but do not receive Wajong benefits, because you receive a different type of benefit or earn income;
  

• You are 65 or older on 31 December 2008;
• Your total income in 2008 in Boxes 1, 2 and 3 does not exceed € 32,234;
  

• revenue from freelance activities;
• fees for giving lectures;
• considerations paid to local council members;

If you exercise an employment or run a business with a company car that is also used for private purposes, a special tax facility will be applicable to you. The benefit entailed by the private use of a passenger car or van made available by your employer will be taxed as wages in kind. This addition will be reduced by wage tax/national insurance contributions and the income-related contribution towards the health care insurance scheme. This addition is a percentage of the value of the car. The addition for private use applies to passenger cars and vans.

The value of a passenger car is based on the original list price of the car in the Netherlands, including VAT and private motor vehicle and motorcycle tax (Belasting op personenauto's en motorrijwielen, or BPM). This also applies if the car was purchased abroad or is registered abroad. As long as no BPM is owed on vans, the value of a van is based on the list price including VAT. In addition, certain vans may be eligible for a relaxed facility. If your car is older than 15 years, the addition for private use will be a percentage of the market value.

See also:

• Size of the addition for private use;
• Use does not exceed 500 kilometres;
• Kilometre log;
• Statement of no private use of company car;
  

• by means of a balanced kilometre log;
• if you have been provided with a van and your employer has forbidden you in writing to use the van for private purposes. Your employer should sufficiently monitor your use of the van and impose an appropriate sanction if the ban is not observed;
• if you have been provided with a van that cannot be used outside working hours, because the van is kept within the locked business premises outside working hours and this is verifiable;
• under a (collective) arrangement with the Tax and Customs Administration on how your employer monitors your private use;
• by means of a 'Statement of no private use of company car' in combination with a balanced kilometre log or another type of proof;
• by means of other types of proof (under the doctrine that evidence can be provided by all legal means available), for instance a Black Box;

• the make of the car;
• the model of the car;
• the registration number of the car;
• the period during which the car was available to you;

For each journey you must specify:

• the date;
• the initial and final mileometer reading;
• the address of departure and the address of arrival. If you drive to a meeting from your place of work and back again, you should write down the addresses of arrival and departure for both the outbound journey and the return journey;
• the route you followed, if this is different from the most customary route;
• whether this is a private journey or a business journey;

The correctness of a kilometre log may be verified on the basis of, for example, office diaries, order notes, garage bills and electronic route planners. We recommend that you retain the kilometre log and this information, because the Tax and Customs Administration may ask you to produce them.

Alternatively, an adequate kilometre log may be kept with the aid of Black Box systems. These are automated registration systems that support the kilometre log. They accurately record the number of kilometres driven in the car. The written reports based on these records often specify each individual journey. In this respect, the Black Box may help reduce the administrative burden, because a multitude of journey details are recorded automatically.

The driver indicates himself whether the journey is a business journey or a private journey. Therefore, a relationship between the report and other documents (diaries and the like) will still be necessary, as is also the case with a manually kept kilometre log.

The totality of reports and underlying documents constitutes the (verifiable) kilometre log that serves as proof of the actual use.

• Your employer has made a collective arrangement with the Tax and Customs Administration. You can check this with your employer;
• You drive a van that you cannot use outside working hours, because the van is kept within the locked business premises outside working hours and this is verifiable;
• You drive a van and your employer has forbidden you in writing to use the van for private purposes. Your employer sufficiently monitors your use of the van and will impose an appropriate sanction if the ban is not observed;
• Because of the nature of your work, you and one or more of your colleagues constantly take turns in driving the van, and it is difficult to determine to which of you the van has been made available for private purposes. The private use will be taxed on the part of your employer via a final levy. You can check this with your employer;
• You are driving a van that is suitable (nearly) exclusively for the carriage of goods. For example, this may be a van that only has a driver's seat and in which the attachment points of the passenger's seat have been ground down or welded shut;
• You are driving a car that is equipped, and is recognisable as such, for use by the police or the fire brigade, for transporting sick and injured persons, for transporting mortal remains, for transporting prisoners, for transporting sick or injured animals or for securities transports;

• savings;
• properties that are not your principal residence, such as a second home or a building let out;
• shares and other securities, provided that these do not fall in Box 2;
• annuity insurance for which the premium cannot be deducted;
• capital sum insurance that is not linked to the owner-occupied property;

• personal loans;
• continuous credit, or a mortgage not used towards the owner-occupied property that is your principal residence;

Please note:

In respect of liabilities, a threshold applies. The first € 2,800 in liabilities is not deductible from the capital in Box 3. For partners, this threshold is € 5,600.

Certain assets and liabilities are disregarded for the purpose of Box 3. For more information, please refer to Assets and liabilities not falling in Box 3.

Tax-free allowance
All taxpayers are entitled to a tax-free allowance in Box 3. This is a fixed amount that is exempt from taxation. The tax-free allowance is € 20.315 per taxpayer. In addition, the following rules apply:

• If your capital does not exceed € 20.315, it will be entirely free of tax;
• If you are 65 or older, the tax-free allowance may be increased by the elderly person's allowance;
• If you have children, the tax-free allowance may be increased by € 2,715 per underage child;
• If your capital exceeds the tax-free allowance, only the part in excess of the exemption will be taken into account in calculating the tax in Box 3;

Calculation of tax
The capital that does not fall within an exemption is the basis for the calculation of the income from savings and investments (Box 3). If you have a partner, you can apportion the capital between you at your own discretion (see Partners). The capital is determined twice a year: on 1 January and on 31 December. A notional yield of 4 per cent is calculated on the average capital in a year minus the tax-free allowance (the so-called capital yield tax base): the income from capital assets. This income is taxed at a rate of 30 per cent.

The following items apply for deductible expenditure Box 1:

• Employee's allowance;
• Deduction of mortgage interest and other deductible expenditure;
• Expenditure on income insurance: annuities and other premiums;
• Offsettable losses from employment and home ownership;

• entered into an irreversible obligation to sell their owner-occupied property, or
• purchased a new owner-occupied property;

Example

The purchase price of your new property amounts to € 200,000. The acquisition costs (the property transfer tax and the notary's and estate agent's fees) amount to € 18,000. The total purchase costs of the property will then be € 218,000.

The sale proceeds of your old property are € 147,000. The amount of outstanding mortgage amounts to € 109,000 at the time of the sale. The surplus value will then be € 147,000 - € 109,000 = € 38,000 (the net revenue from the sale of the property). In that case, the maximum amount of outstanding mortgage on your new property will be € 218,000 - € 38,000 = € 180,000.

If you take out a higher mortgage, the interest on the part in excess of € 180,000 will not be deductible.

• in the case of annual premium payments over 15 to 19 years inclusive: € 32,500 at maximum;
• in the case of annual premium payments over 20 years or more: € 143,000 at maximum;

• premiums towards occupational disability insurance for yourself;
• premiums towards annuities for handicapped major children or grandchildren;
  

• you opt for resident taxpayer status;
• you do not opt for resident taxpayer status;

Personal allowance items
A personal allowance is involved if one or more of the following items apply to you:

• alimony paid and other expenditure on maintenance;
• losses on loans to new businesses ('Agaath' loans);
• cost of living of children younger than 30;
• medical expenses and other extraordinary expenditure;
• expenditure on weekend visits by handicapped children of 30 years or older;
• educational expenses;
• donations;
• expenditure on listed buildings situated in the Netherlands;

How do you offset your personal allowance?
You can offset the personal allowance against the income in the three boxes, provided that your offsetting the personal allowance does not reduce the income in a particular box to less than zero. There is a fixed order of offsetting:

• You deduct the personal allowance from your income from employment and home ownership (Box 1);
• If the allowance exceeds your Box 1 income, you offset the excess against the income in Box 3;
• You then deduct any remaining amount from your income in Box 2;

If it should be impossible to offset the entire amount, the remainder can be carried forward to the next financial year.

• Your income from activities performed in an employment in the Netherlands is subject to wage tax, and you do this work only in the Netherlands. In that case, you will remain insured also in the event that your work is temporarily interrupted on account of illness, maternity leave, an accident, unemployment, paid leave, strike or exclusion;
• You do not live in the Netherlands, but do your work as a self-employed person only in the Netherlands;
• You work on a means of transport (including inland shipping and Rhine navigation);

• You do not work in your country of residence alone;
• You do not work for a foreign branch or a foreign permanent representation of a Dutch business;

Please note:

Also in a number of special situations you will remain insured in the Netherlands, for instance if you have been posted abroad in a military capacity, or if you have been seconded and possess a statement of secondment based on an international social security regulation.

Only insured for AWBZ
Even if the aforementioned situations do not apply to you, it may still be possible that you are insured under the AWBZ scheme (and not under the other insurance schemes). You may be insured for AWBZ if you meet either of the following conditions:

• You are insured in the Netherlands under the Compulsory Health Insurance Act;
• Based on international regulations, you are entitled to medical care in your country of residence, the expenses of which are borne by the Dutch Health Insurance Fund (Ziekenfonds). For example, this may be the case if you moved abroad when you retired and continue to receive pension payments or benefits from the Netherlands;

• occupational disability insurance scheme (WAO or WIA);
• unemployment insurance scheme (WW);
• health care insurance scheme (ZVW);
• sickness insurance scheme (ZW);

• the benefits you receive on shares or profit-sharing certificates that are part of a substantial interest (regular gains), reduced by the deductible expenses; and
• the profits you realise upon the disposal of shares or profit-sharing certificates that are part of a substantial interest, or upon the disposal of a part of the rights pertaining to these shares and profit-sharing certificates (capital gains), reduced by the deductible expenses;
• reduced by the personal allowance;

• taxable profits from business activities;
• taxable wages;
• taxable income from other activities;
• taxable periodic benefits in money and kind;
• taxable income from an owner-occupied property;
• negative expenditure on income insurance;
• negative personal allowance items;

• expenditure on income insurance;
• expenditure on childcare;
• personal allowance;

• statutory pension insurance scheme (AOW);
• surviving dependants' insurance scheme (ANW);
• child benefit insurance scheme (AKW);
• exceptional medical expenses insurance scheme (AWBZ).

• a property (principal residence) of which you have the usufruct, if this usufruct was obtained by inheritance;
• a membership in a cooperative apartment association (principal residence);
• a houseboat (principal residence) with a permanent mooring place;
• a caravan (principal residence) with a permanent site;

• You own an interest in a company comprising at least 5 per cent of the issued share capital, either in the form of shares or in the form of call options on shares.
• You own profit-sharing certificates, entitling you to at least 5 per cent of the annual profits or to at least 5 per cent of the distribution made upon liquidation.
• You are entitled to at least 5 per cent of the votes in the general meeting of a cooperative.

• You are a spouse not living permanently separated.
• You are a registered partner not living permanently separated.
• You and an unmarried adult elect to be regarded as each other's tax partners, and meet the following conditions:
•       You ran a joint household for more than six consecutive months during a particular calendar year.
•       During that period, you were both registered at the same address in the municipal records.
•       If you are cohabiting as parent and child, you should both be 27 years of age or older at the start of the calendar year.

• You are a spouse not living permanently separated.
• You are a registered partner not living permanently separated.
• You and an unmarried adult elect to be regarded as each other's tax partners, and meet the following conditions:
• You ran a joint household for more than six consecutive months during a particular calendar year.
• During that period, you were both registered at the same address in the municipal records.
• If you are cohabiting as parent and child, you should both be 27 years of age or older at the start of the calendar year.

• You own an interest in a company comprising at least 5 per cent of the issued share capital, either in the form of shares or in the form of call options on shares.
• You own profit-sharing certificates, entitling you to at least 5 per cent of the annual profits or to at least 5 per cent of the distribution made upon liquidation.
• You are entitled to at least 5 per cent of the votes in the general meeting of a cooperative.

• a property (principal residence) of which you have the usufruct, if this usufruct was obtained by inheritance;
• a membership in a cooperative apartment association (principal residence);
• a houseboat (principal residence) with a permanent mooring place;
• a caravan (principal residence) with a permanent site;

• statutory pension insurance scheme (AOW);
• surviving dependants' insurance scheme (ANW);
• child benefit insurance scheme (AKW);
• exceptional medical expenses insurance scheme (AWBZ).

• taxable profits from business activities;
• taxable wages;
• taxable income from other activities;
• taxable periodic benefits in money and kind;
• taxable income from an owner-occupied property;
• negative expenditure on income insurance;
• negative personal allowance items;

• expenditure on income insurance;
• expenditure on childcare;
• personal allowance;

• the benefits you receive on shares or profit-sharing certificates that are part of a substantial interest (regular gains), reduced by the deductible expenses; and
• the profits you realise upon the disposal of shares or profit-sharing certificates that are part of a substantial interest, or upon the disposal of a part of the rights pertaining to these shares and profit-sharing certificates (capital gains), reduced by the deductible expenses;
• reduced by the personal allowance;

• occupational disability insurance scheme (WAO or WIA);
• unemployment insurance scheme (WW);
• health care insurance scheme (ZVW);
• sickness insurance scheme (ZW);

• Taxable wages
• This will be the case if you are employed or receive social security benefits, pension benefits or annuity benefits from which payroll tax is withheld.
• Taxable profits from business activities
• This will be the case if you run a business.
• Taxable revenue from other activities
• This will be the case if you work as a freelancer, for example.
• Taxable periodic benefits in money and kind
• This will be the case if you receive taxable periodic benefits in money and kind – such as alimony from your ex-partner or annuity benefits – from which no payroll tax is withheld.

• www.postbus51.nl
• www.denieuwezorgverzekering.nl
• www.cvz.nl

When you work or run a business abroad there are issues to consider besides in which country your income is liable to tax. It is also important to know in which country you are covered by social insurance. You can answer this question by looking at the relevant international agreements made on this point.

Most issues involving social security in cross-border work situations are covered by European Union regulations (EC Regulation 1408/71). Additionally the Netherlands has separate agreements with many countries. One of the purposes of such agreements is to prevent you from being covered by more than one social security system or none at all when you work or have a business abroad. As a general rule the social security system of the country in which you work is the one that applies to you. However, there are a number of exceptions to this rule. For example, other rules apply if your employer sends you to work abroad temporarily (secondment) or if you work in two or more countries.

Please note:If you live abroad and intend to work in the Netherlands, find out what the consequences will be for your social security. Also, if you are going to receive social insurance benefits from the Netherlands, it is important to find out how this will affect your social security.