In the Netherlands, an employer is legally required to withhold payroll taxes for all staff members employed. The employer pays these payroll taxes directly to the Dutch tax office, so employees receive their salary net, free of tax. They do not have to worry about tax due on the income received from the employer.
Payroll taxes consist of the following components:
- Wage tax and premium national insurances (state pension. survivor's pension, special care costs)
- A premium for employee insurances (unemployment, occupational disability, sick leave)
- An income-dependent contribution towards health care insurance
- salary before tax (gross salary)
- benefits in kind (such as gifts, use of company car, lunches, etc)
- tips and company fund payments received
- (restricted) stock options received
Living and working in the Netherlands for a time? We can help you with your Dutch taxes, so you don't have to deal with the Belastingdienst yourself. Whether you're employed or have a small business, we'll make your life easier and save you money.