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Payroll & Tax in Netherlands


Netherlands payroll & taxation

There are specific rules for payroll and taxation in Netherlands, depending upon the type of business structure being used. Any business with employees must register with the Dutch Tax Authorities, and receive a payroll tax number. The primary concerns for a foreign company that needs to comply with tax laws in Netherlands are: income tax withholding, national insurance withholding, (included in payroll tax), business tax and permanent establishment concerns.

Your Payroll Options in Netherlands

Remote Payroll

A remote payroll in Netherlands is where a foreign company, i.e. a non-resident company, payrolls a resident employee in Netherlands. One option for a non-resident company to payroll its employees (local and foreign) in Netherlands is to use a fully outsourced service like a GEO which will employ and payroll the staff on their behalf.

Local Payroll Administration

In some cases, a company will register their business in Netherlands under one of the forms available, but prefer to have another company administer its payroll.  This can be accomplished through a payroll provider. It is important to note that the company, as the Employer of Record, is still fully responsible for compliance with employment, immigration, tax and payroll regulations. But the payroll calculations, payments and filings can all be outsourced to the payroll provider.

Internal Payroll

Larger companies with a commitment to Netherlands may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete incorporation, register the business and then hire the necessary staff. There will be a need for in country human resources personnel who have the background needed to manage a Netherlands payroll, and can fulfill all tax, withholding, and payroll requirements.

Fully Outsourced Payroll & Employment

Companies can outsource the employment and payroll of their staff in Hong Kong to a GEO, like Shield GEO. This is possible for both foreign workers and Hong Kong nationals. This is the easiest, fastest and safest way to payroll staff in Hong Kong.

Shield GEO manages all aspects of payroll for workers in Hong Kong, including taxes, withholding, social security payments and other statutory requirements. Shield GEO becomes the Employer of Record and employs the staff on behalf of the client.

Staff are paid monthly with tax and social security deducted at source and paid to local authorities. Shield GEO will invoice the client monthly in advance of the payroll date. The invoice consists of the Total Cost of Employment (Base salary + Employers Statutory Contributions + Additional statutory contributions) and a Management Fee. Shield GEO provides the employees with payslips.

Read more about outsourced payroll and employment through Shield GEO.

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Setting up payroll in Netherlands

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