Any business that intends to employ staff in The Netherlands must register as an employer. It doesn't matter whether you have a branch/permanent establishment or a company established in The Netherlands. When you are registered you will receive a payroll tax number. This number is used to file payroll tax returns. To register as an employer in the Netherlands is a simple process. However, to file the Dutch payroll tax returns, it’s advised that you involve a ‘payrolling’ company in The Netherlands.
The same tax rules apply to a ‘permanent establishment’ in The Netherlands as for a company established in The Netherlands. Meaning that when the above mentioned requirements are met you are liable to withhold payroll taxes and filing the tax return. For personnel hired through an intermediary or subcontractor, the intermediary or subcontractors are liable for the contributions and payroll tax. For shareholders/employees working in The Netherlands but residing outside of The Netherlands it depends on the facts whether they are covered by the Dutch national insurance schemes or not.
A wage/payroll tax number is necessary if a BV employs employees. This is usually the case because the DGA of a BV is also regarded as an employee for tax purposes. At least one usual wage must be paid to a DGA, for which the company is responsible to withhold wage taxes.
Are you an employer of (your own) children, home staff, artists or professional athletes? Then you should not send this form, but one of the following forms to register as an employer:: – Melding loonheffingen werkgever van meewerkende kinderen – Melding loonheffingen werkgever van personeel aan huis – Melding loonheffingen aangifte doen voor artiesten of beroepssporters. These forms can be downloaded at the Belastingdienst.nl
The definitions ‘payroll’ or ‘wage tax’ number are are often used interchangeably, but they mean the same thing.
Registration requirement for Foreign companies
Foreign companies are, the same as Dutch companies, obliged to register as an employer and deduct taxes from their employees if the following requirements are met:
The registered office of the company is based in The Netherlands
The company has a permanent establishment in The Netherlands (see our blog about substance)
Personnel is post or hired in or to The Netherlands
The employee works on the shelf of The Netherlands
The employee falls under the Dutch insurance schemes
The employees’ data has to be kept in their personal records. As an employer you are responsible for the amount of deducted payroll taxes being withheld from the employees salary. Meaning that you have to calculate the right amount of contributions and taxes. After this a tax return needs to be filed before the date the taxes become due.
When temporary personnel is hired through an intermediary or subcontractor things are different. These intermediary or subcontractors are liable for the contributions and payroll tax for those employees.
How will the Dutch wage tax number be used?
As an entrepreneur you will be employing personnel, these personnel must be paid. In the Netherlands, as an employer you are obliged to pay certain contributions and taxes on the wages you pay to your employees. Without information, however, the tax authorities do not know how much salary has been paid, and how much premiums and tax have to be paid on it. That is why there is a payroll tax return, you as an entrepreneur inform the tax authorities by how much salary has been paid and how many premiums and taxes you have to pay. You do not have to worry about difficult calculations, if you outsource your payroll with us, we will take care of all tax returns and contact the tax authorities. In order to be able to file this tax return, however, a payroll tax number is required, so the tax authorities know which entrepreneur has filed a tax return.
How to apply for a Dutch payroll tax number?
You can apply for a Dutch payroll tax number with the tax authorities using the form “register employer”. If the registration has been received by the tax authorities, you will receive a “declaration of payroll taxes”. Here it mentions the periods for which a wage tax return must be filed in the Netherlands. This letter also contains your payroll tax number and, if applicable, a letter where the tax authorities indicate which sector you are an entrepreneur. This has to do with the employee insurance contributions to be paid. You will also receive a letter with the percentage for the differentiated premium Whk. No idea what to do with this data? If you let us take care of your salary administration, we will arrange that all returns are sent correctly and on time.
What if you don’t pay out any salaries (temporarily)?
If you decide to work without personnel for a certain period of time or temporarily continue without personnel in your company, it can be considered to cancel your payroll tax number. After cancellation, you no longer have a duty to submit the payroll tax return. If you do not cancel the payroll tax number, you will remain obliged to file payroll tax returns. These will then be ZERO declarations.
If you are not sure whether you will be hiring staff again soon or at all, it is best to cancel your payroll tax number with the Tax and Customs Administration. This ensures that after the processing period at the Tax Authorities (approximately 8 weeks) you are exempt from the declaration obligation and you no longer have to worry about filing the declaration, or you save the costs that your salary administrator has to pay for it. calculates. You can only cancel your payroll tax number in writing with the tax authorities. Click on the link below to download a sample letter that you must send to your regional office of the Tax Authorities.
If you decide to hire staff after a certain period, you can easily request your payroll tax number again. You do this in exactly the same way as you did it the first time.
Tutorial: How to register as an Employer of Records in The Netherlands
Our tutorial will provide you full translations of the complete form, and instructions on how to complete it.
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