Obtain the data required for the payroll taxes
Once you employ an employee you must file payroll tax returns. You will need the employee's details to file these payroll tax returns. The new employer submits the following details to you:
- the employee's name and initials
- the employee's date of birth
- the employee's citizen service number (burgerservicenummer, BSN)
When your employee has yet to be issued a BSN then you use the employee's personnel number during the interim period. For more information about the BSN, visit government.nl.
- the employee's address
- the employee's postcode and town/city
- when the employee does not live in the Netherlands, the state in which the employee lives and the region
- a request to apply a payroll tax reduction
The employee supplies these data, either on paper or in a digital format, provided with a date and a signature using the model for entering the data of the income tax and national insurance contributions: ‘Model Statement of data for payroll taxes’. However, you or your employee is allowed to use their own model containing the data set out above. It is also sufficient to submit a copy of a valid proof of identity together with all the aforementioned data (including the request to apply the tax credit, if the employee wishes to apply it, as well as a signature and a date).
If you re-hire an employee, you do not need to ask the employee to resubmit all the payroll taxes details. However, this is subject to the condition that no changes have taken place in the intervening period. On re-entering your employment the employee will need to sign the earlier statement to confirm that the details are still correct.
When you have not received the payroll taxes details from your employee before the first working day – or on the first working day when you employ the employee on his or her first working day – then you apply what is referred to as the anonymous rate.
Inspection of the details and entry in your records
Once you have received the payroll taxes details from your employee you must inspect the details and enter them in your records.
Check the employee's place of residence
Starting on 1 January 2019, you need to know what country your employee resides in in order to know which payroll tax table to use (see: 'Calculating wage tax/national insurance contributions'). Therefore make sure you have received the right place of residence from your employee. Just because your employee gives a place of residence in the Netherlands does not mean that he is a resident of the Netherlands.
An employee is a resident of the Netherlands when this country is his/her permanent place of residence. It is unclear whether an employee is a resident of the Netherlands when he/she lives or resides in both the Netherlands and a foreign country. If, for example, the employee’s entire family lives abroad, the children go to school abroad, and the employee has bank accounts abroad, then he is not a resident of the Netherlands. You yourself must assess whether the country designated by your employee as place of residence is in line with other information they have given you. If that is the case, then you may assume it is the correct place of residence.
You therefore determine where an employee lives on the basis of all the facts and circumstances known to you. For example: the place of residence that the employee provides to you as one of the details of payroll taxes, travel allowances that you pay him and details for assessing the insurance obligation.
Retention of payroll taxes details and submission of the details
You retain the payroll taxes details for at least 5 calendar years after the termination of the relevant employee's employment. You retain these details with your payroll records. The Tax Administration may request you to furnish these details.