THE NETHERLANDS: FAQs
Here are some of the most frequently asked questions about employing and working in the Netherlands.
Your staff are no doubt well trained, experienced professionals, but we have decades of experience of working with companies, agencies, contractors and government administrators from multiple countries around Europe. It’s much simpler to use our expert service than go through the time and expense of finding out how to do it for yourself.
We aim to be as invisible as possible, taking care of everything with the minimum of fuss.
We are so confident of our services, that we will indemnify you – client, agency or contractor – against any losses arising from the incorrect employment of staff or non-payment of tax and social security.
This is the national standard for agencies who supply temporary workers and the individuals, as well as any sub-contractors, who have their registered offices in the Netherlands for the purposes of tax and social security. The aim of the standard is to help make sure that employers and agencies don’t have to pay penalties for underpaying taxes to the Netherlands Tax and Customs Administration, and other government agencies.
When you post hire out or second personnel to the Netherlands, the employer may ask you to open a G account. This is a frozen account that you can use to make payroll tax and VAT payments to the Dutch government. The recipient deposits the estimated amount into your G account, and you can use it to make payroll tax and VAT payments. If you fail to make these payments, the Tax and Customs Administration will not be able to hold the recipient liable for the amount that they have deposited into the G account.
This is a private limited company, in Dutch a Besloten Vennootschap met beperkte aansprakelijkheid. It compares to a German GmbH, an American LLC or a British limited company. The BV has legal status and its equity is divided into shares.
This is an annual statement summary which individuals will receive from the employer at the end of the tax year. It shows how much an individual earned from the employer and how much tax the employer paid to the tax office from the earnings.
You can, so long as you register it with the local authorities for tax purposes. Once you have done this, your company can apply on your behalf for an AI, with you as an employee. You will then need to run a payroll in your home country and the country you’re working in, deducting tax for the country you’re working in and anything additional that you would owe your home country along with the social security you pay in your home country.
This is a special incentive in the Netherlands that means you are deemed as a ‘highly desirable worker’ who possesses skills that are in short supply and high demand. It means that the first 30% of your income is exempt from Dutch tax, though social security is still due.
Assuming you are on a UK payroll, your employer can apply for an AI for you, which is subject to the HMRC’s approval.
This is designed for project-based assignments. It means a limited company can send an employee with an AI to work for a client in a foreign country, and if they will be there for less than 183 days, there is no need to withhold that country’s tax. However, there is a strict rule that this employee can not work on-site for anyone other than the client they are billing, and they may not work through a third party such as an agency.
Freelancers are known in the Netherlands as ZZP-ers (Zelfstandig Zonder Personeel). Before you can become a ZZP-er in the Netherlands you need to have the following,
Before you can become a ZZP in the Netherlands, you need to have a valid residence permit, which is relatively simple for current members of the EU. Then you can register yourself as a freelancer with the Dutch Chamber of Commerce (Kamer van Koophandel or KvK).
You also need to apply for a model agreement. This is a contract that replaces the previous VAR system (though if you already hold a VAR, that is currently still valid), and is designed to make life simpler for ZZPers. We can help you to find the right model agreement for your profession, or even to write your own.
However, you really do need the right agreement. While there’s a transitional period where no one will be prosecuted except in cases of serious fraud, from May 1 2017, the Dutch authorities will be taking a very close look at who is working with what.
TCP can help with employing contractors in The Netherlands because we’re a member of the NBBU (Nederlandse Bond van Bemiddelings en Uitzendondernemingen). This classifies us an agency, although we don’t actually employ or find contractors for you.
We can help clarify the position of contractors – are they ZZPers, do they qualify for the foreign workers tax ruling, are their skills and experience scarce, and so on.
We can sort out when to pay your contractors as well as how much tax to deduct, which expenses and costs can be claimed legitimately, which holidays to include in payments, what sickness payments are payable and more.
Then there are contracts and how long they should be, what notice periods to give, what allowances are due, what probation periods can be offered.
TCP can sort out work permits as we are registered with the Dutch immigration authorities as a highly skilled migrant employer, so we can use the fast track procedure to obtain work permits for those who come in from outside the EU, which usually takes about two weeks.
The NBBU is a representative stakeholder for more than 1100 professional intermediaries in the Dutch labour market. Membership of the NBBU is a quality guarantee for good entrepreneurship. Intermediairs who are a member of the NBBU will deliver:
Quality: Intermediairs who are a member of the NBBU comply with the highest quality requirements in terms of administration and organization.
Knowledge: NBBU members know the Dutch labour market better than anyone else. Specialists in the NBBU Servicedesk stand aside with specialist questions in the field of collective agreements, subsidies and (social) laws and regulations.
Reliability: NBBU members need to be SNA-certified and they’re monitored for compliance with their cao (collective agreement for temporary workers). A member that doesn’t meet the NBBU requirements, loses the NBBU approval mark.
Professionality: The professional intercedents who are members of the NBBU are highly skilled. The NBBU supports them with specialist knowledge and the NBBU Service Desk.
Flexible cao: A NBBU member provides a flexible collective agreement for temporary workers.. (www.nbbu.nl)
When you are an intermediary or supervisor of a temporary employment agency in the Netherlands then you must be in possession of a ‘Veiligheid voor Intercedenten en Leidinggevenden VCU (VIL-VCU)’ (Safety for Intermediaries and Supervisors SCT) diploma. With it, you indicate that you are aware of the safety requirements imposed on personnel at companies with SCC certification.
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