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Dutch payroll tax explained

In recent years, economic change has prompted a focus on flexibility in the Dutch labour market. This has created a demand for payrolling, which in turn provides excellent opportunities for domestic and foreign payroll service providers. However, operating in the Dutch market requires a thorough understanding of Dutch payroll tax. Legal liability is defined differently in each country and the Netherlands is no exception to this rule. Dutch payroll tax can be a complex affair for international service providers and properly understanding the details may use up valuable time. That is why WePayPeople’s Dutch Umbrella Company offers specialised services to help you deal with Dutch payroll tax. Our dedicated professionals are capable of handling even the most complex accounts with ease.

What do you need to know about Dutch payroll tax?

Under Dutch payroll tax law, each foreign company that assigns workers to the Netherlands automatically becomes a “virtual resident” of the Netherlands. This means employees are liable to Dutch payroll tax for the duration of their contract. As such, the legal employer is legally obligated to create a complex payroll administration and ensure proper payment of Dutch payroll tax. The consequences can be severe if these issues are not addressed properly; your clients in the Netherlands may be subject to fines and legal repercussions if you fail to comply with Dutch payroll tax law. Fortunately, WePayPeople’s Dutch Umbrella Company has the requisite expertise to minimise these risks and ensure your activities in the Netherlands run smoothly.

Properly addressing Dutch payroll tax with WePayPeople

WePayPeople’s Dutch Umbrella Company has ample experience with Dutch payroll tax and can help you with any and all associated administrative tasks. If you are active in the Dutch market, Dutch payroll tax law specifies that your entire payroll must meet Dutch standards. This means your employees must be registered with the Dutch payroll tax office, monthly costs must be administrated correctly and wage tax and social premiums must be withheld and paid to the tax authority. Additionally, there are certain loopholes in Dutch payroll tax legislation which can prove beneficial to your financial position. By working with WePayPeople’s Dutch Umbrella Company, you will enjoy all the benefits a professional payroll service provider can offer while simultaneously ensuring perfect compliance with Dutch payroll tax law. Please feel free to contact us for more information about our services.