Employing staff using a Dutch company
If you like to payroll staff in The Netherlands, one of the first steps is to register a branch or Legal entity in The Netherlands. In some cases, local business registration is not required, and the overseas company can apply for a wage/payroll tax ID directly at the tax authorities.
The tax treatment of the staff members will depend on the location (country) where they will operate, and their residency.
In this post, we will assume that staff members will be based in The Netherlands, and considered tax resident in The Netherlands. In case employees can go to the Netherlands for less than 4 months, other tax treatments might apply. You find more information on this in a separate post.
Is a Dutch business registration required to payroll Dutch staff members?
In case you are planning to recruit or relocate staff to The Netherlands, it’s important to understand if a local business registration is required. In fact, if you are relocating staff or recruiting staff in The Netherlands that will work for your company, and such services are provided directly for your company, no business registration would be required. However, the wage taxes would be applicable, as if a business were registered.
In case the Dutch staff is appointed, in order to hire out this staff as workers to other (Dutch) companies, the registration at the Chamber of Commerce is required.
Every company or legal entity that makes a workforce available must register this in the Trade Register. This applies to both entrepreneurs who provide a workforce as well as a non-workforce. With regard to business, employment agencies, lending agencies, payrolling companies and job pools should be considered. For companies that provide a non-professional workforce, it is important that this is not part of the regular business activities.
Do you make the workforce available?
The law states: "the making available of a workforce for a fee to another person for the purpose of performing work under his supervision or management, other than by virtue of an employment contract concluded with him." Specifically, 3 elements are important:
There is one company that makes the workforce available to another company.
The company that makes the workforce available receives compensation for this from the company to which the workforce has been made available.
The manpower made available works under the supervision and management of the company to which he has been made available.
For Waadi purposes, it’s not relevant if there is an address(permanent establishment) in the Netherlands. The only thing that should be done is to add ‘ter beschikking stellen van arbeidskrachten’ (providing workers) to the activities in the trade register so that companies doing the Waadi check see that the Dutch company (or branch registration of an overseas company) is registered properly.
Please see here information and the basis for the registration.
Working with a G Account in The Netherlands
In case your company in the Netherlands is hiring our workers to Dutch customers, it’s likely that your customers might require you to open a so-called G-account. Your customer will pay the invoices to your G-Account, which ensures that the tax authorities get paid (taxes and social contributions), therefore the G-account works like an escrow account in some way.
The request to release an amount can be done at any time through a special form explaining that a surplus exists and this amount should be released. The tax authorities will decide by formal decision.
How to start Dutch payrolling Services
We can help you recruit and appoint staff, although of course, we are not a fully-fledged recruitment company. But we can help you explain how it works, the requirements, draft agreements, negotiate salaries, and take care of HR issues. Linkedin Recruiter can be used by us to start a recruitment process.
The first step is to apply for a wage tax number, draft an employment agreement, and start the official payrolling.
We can provide you with the pay-rolling services for 450 EUR per person, per year, excl. VAT.
In case the Company will get more than 10 staff members, we will reduce the fees to 325 EUR per employee (per year, based on a full year. We don't offer the service in pro ratio periods).
The fees include:
· Issuance of Salary Slip (pdf and hardcopy)
· Filing of wage tax return
· Tax Calculation on salary
· Advice on 30% Tax ruling (if applicable) (application is charged separately at 750 EUR, but included in our 6.500 EUR offer)
· Basic support on immigration services for expats (help with housing formalities, tax filing requirements (income tax)
· Complete statements/journals for the bookkeeper who will be responsible for corporate bookkeeping.
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