Do I pay Dutch income taxes as an employee/company owner of my company in the Netherlands?
Once your company becomes active and creates a profit, it’s likely that you will receive a salary from the company. This salary might be taxed in the Netherlands, but this is not always the case.
In the Netherlands, there is a distinction between payroll tax and social contributions. In several circumstances, social contributions might vary. For example, company director-shareholder pay less social contributions, because they are not entitled to sick leave and several other employee incentives.
In case an employee(-owner) is spending most of the year outside the Netherlands, this can also affect the social contributions, as well as the payroll tax.
Requesting an exemption for both payroll/wage tax as social
Assuming that the work period (in the Netherlands) is 6 months or less, the employee remains a tax resident of his country of residence and is, in principle, taxed there for his world income. To prevent the Netherlands from levying taxes on wages, an application for exemption from payroll tax can be made.
Do you want to apply for the exemption? Download the application form here.
Pay attention! this requires a 'declaration of tax liability for the country of residence'. This declaration must be signed by the tax authorities of the country of residence.
You will find an example of a declaration of residence here.
You can also schedule a call with one of our experts below. They will make an inventory of what it is you need.
YOUR BUSINESS TOOLKIT
FREE ACCESS TO ALL THE THINGS YOU NEED TO KNOW
Our experts have combined their knowledge and strengths to create a tool we call the Business Toolkit.
The Business Toolkit will help you and entrepreneurs from around the globe to truly understand the Dutch market, regulations and laws. And will enable you to take a deep-dive into the topics displayed below.
Make sure to check out our handy checklists, explainer videos and extensively written Whitepapers too!