You post, hire out or second personnel in or to the Netherlands

If you post, hire out or second an employee to work in the Netherlands, you are the withholding agent (inhoudingsplichtig) for that employee. This also applies if you second an employee to a Dutch part of your group. You must then register as an employer with the Tax Administration of the Netherlands. You can do this using the Registration form Foreign companies.

If a tax treaty determines that your employee must pay tax on their wage in the Netherlands, you must withhold wage tax (loonbelasting) from your employee’s wage.

If the European Regulation No. 883/2004, social security agreements, and national legislation determine that your employee is covered by the social security insurance schemes of the Netherlands, you must withhold national insurance contributions (premie volksverzekeringen) and pay the employed persons’ insurance contributions (premies werknemersverzekeringen). In addition, you must either withhold the employee’s contribution under the Health Care Insurance Act (Zvw) (bijdrage Zvw) from your employee’s wage or pay the employer’s contribution under the Health Care Insurance Act (werkgeversheffing Zvw).

Liability for payroll taxes

When you post, hire out of second an employee you are a supplier. The person to whom you make staff available is the recipient. You, as the supplier, are the formal employer and, consequently, are required to pay payroll taxes. However, if you do not fulfil this obligation then we can hold the recipient of the personnel liable for the payment of the payroll taxes. For this reason the recipient will wish to limit the resultant liability risks. The recipient can do so by:

• screening you as the supplier
• depositing the estimate amount of the payroll taxes into a g-account
• making use of the exculpation regulation

Withholding payroll tax reverse charge mechanism

If you second an employee to a Dutch member of your group or if the employee is going to work for you in the Netherlands, you will, in principle, be a withholding agent. You can ask us if the Dutch member of your group may withhold the payroll taxes. This is what is referred to as the reverse charge mechanism.

If you wish to make use of the reverse charge mechanism then you and the Dutch division of your concern will need to submit an application to the tax office for the Dutch division of the concern. Your application must state the following details:

• the name, address and place of business of your group member and possibly the payroll tax number, if your group member has one
• the name, address, registered office and payroll tax number of the Dutch division of the concern
• the date on which you would like the reverse charge mechanism to enter into force
• whether you wish to receive a general decision or a decision for 1 or more specific employees
• if you want a decision for 1 or more specific employees: the name, address, place of residence and citizen service number (burgerservicenummer or BSN for short) of these employee(s)

When we have processed your application, we will send you a decision stating whether you are allowed to use the mechanism.

You may apply for multiple foreign group members at the same time.