In the Netherlands, the employer is legally required to withhold payroll taxes for all staff members employed. The employer subsequently pays the payroll taxes directly to the Dutch tax office. This way, employees receive their salary net, free of tax. They don't have to worry about tax dues on the income received from you as employer.
Payroll taxes consist of the following components:
- Wage tax and premium national insurances (state pension. survivor's pension, special care cost)
- Premium employee insurances (unemployment, occupational disability, sick leave)
- Income dependent contribution health care cost insurance
Income basis for payroll taxation
- salary before tax (gross salary)
- received benefits in kind (such as gifts, use of company car, lunches, etc)
- received tips and company fund payments
- received (restricted) stock options
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.