You post, hire out or second personnel in or to the Netherlands
When you post, hire out or second an employee in or to the Netherlands then you are a withholding agent for the employee. This also applies if you second employees to a Dutch member of your group. As a withholding agent, you must register as an employer with the Netherlands Tax and Customs Administration. You can register via the 'Registration form Foreign companies'.
When the provisions of a tax convention prescribe that your employee in the Netherlands must pay tax on his or her income then you are under the obligation to withhold wage tax from the wages.
When the provisions of a social security convention or regulation prescribe that your employee falls under the social security insurance schemes of the Netherlands then you are required to withhold national insurance contributions, pay employed persons' insurance contributions and withhold or bear the cost of the contribution pursuant to the Health Care Insurance Act (Zvw) or the employer's contribution pursuant to the Health Care Insurance Act (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 the Tax and Customs Administration 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:
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 name, address, place of residence and CSN of these employee(s)
- the name, address, town/city and citizen service number of the employee(s) for whom you are submitting the application
- whether you wish to receive a general decision
When you apply for a general decision you do not need to state the employees' details in the application.
When we have processed your application, you will receive a decision stating whether you are allowed to use the mechanism.
You may apply for multiple foreign group members at the same time.