The moment that you hire employees directly, you are obligated to arrange many things in the Netherlands outside the core business of your company. Especially the Tax Authorities would like to know more about your business and registration, which is mandatory.
In the Netherlands employers need to pay social premiums for their employees. These premiums are social insurances for unemployment, sickness during work, state pension, and basic health insurance.
Aside from these premiums, taxes need to be paid, too. This amount will be deducted from the employee’s gross to net calculation.
The social premiums together with the tax are called Wage Tax.
To be able to pay this tax, a Wage Tax Number needs to be applied for with the Tax Authorities.
To be able to get your wage tax number you need to be registered with Kamer van Koophandel (KvK), the Dutch Chamber of Commerce. To do this you can make an appointment with the KvK and register your company.
With the wage tax number you get a sector code that will be assigned to your company. This sector code is not only important for you to know but also your salary administrator needs to be informed. This sector code affects the total amount of social premiums.
It is not always necessary to have a registered company in the Netherlands to get a Wage Tax number and to be able to hire employees. There is an option to register your foreign company in the Netherlands without a permanent establishment. Some other documents are required and the application form to apply is a bit more complicated but it would save you a lot of costs.
We have seen in the past a lot of other companies willing to set up their business in the Netherlands. That is a good thing of course but a lot of administration responsibilities come with it. This is the reason a lot of our clients used TOSS’ payroll services for the first 12 months. Not only to discover if their plan will work out in the Netherlands, but also because it is much easier to arrange registrations if you or one of your employees is already settled in the Netherlands.
TOSS would be happy to assist you with your applications and processing your complete salary administration. We can take care of all your matters with the Tax Authorities.
To meet the obligations concerning your employees we can assist you with our HR/Employment service.
As The One Stop Shop, TOSS offers a wide range of services for expats and/or their employers in the field of living and working in the Netherlands with the aim of making every related process as smooth and effective as possible.
We have over 20 years of experience and we have carefully built up an extensive global network of specialists to serve you. All our team members are specialized and educated with all needed payroll certificates and our services meet the (inter)national standards.