The national social security system in the Netherlands requires all inhabitants to pay at least 32.35% in income taxes (including national insurance contributions). Your employer deducts this income tax from your salary and pays it directly to the Tax Office [Dutch Tax Administration].
What you have to pay in other taxes (including wealth taxes) depends on your own personal financial situation. Please call the Tax Office (Belastingdienst) for more information. You can reach them at 0800-0543 from Monday to Thursday, 8 a.m. to 8 p.m., and on Friday from 8 a.m. until 5 p.m. You can also visit the official Dutch tax office site: http://www.belastingdienst.nl/. For information in English use this link.
If you need more information, you can contact the Information Centre for International Tax Issues (IBB). They can be reached on 0800-0241212 or 030-2753812 from Monday to Friday between 8 am and 5 pm. For foreigners living in the Netherlands, there is a special telephone number: 055-5385385.
30% Facility for employees seconded abroad
When an employee, recruited from outside the Netherlands, has specific expertise that is scarce or unavailable on the Dutch labour market, the employer may reimburse certain expenses tax-free. These are tax-free expense allowances and benefits in kind granted concerning extraterritorial expenses (salaries tax). These are any reasonable additional costs incurred in relation to a foreign worker's temporary stay outside the employee’s country of origin.
The application of the 30% facility is subject to the following conditions:
- The employee concerned must have been recruited from outside the Netherlands and must have specific expertise, which is scarce or unavailable on the Dutch labour market (employee assigned to the Netherlands).
- The employer (the 'withholding agent', i.e. the person responsible for deducting income tax) and the employee must make a joint request to the Inspector for application of the arrangements.
In determining whether the first condition is satisfied, the Dutch Tax Office (Belastingdienst) will, where relevant, consider the following factors:
- the level of education attained by the employee
- the employee's relevant experience for the position
- the remuneration for the position in the Netherlands in relation to the remuneration in the employee's country of origin.
The employer (unfortunately, this may not be a recruitment agency) must obtain permission from the Dutch Tax Office. To obtain this permission the employer and employee must submit a joint request to the Tax Office in Heerlen (Belastingdienst/Limburg/kantoor Buitenland, Postbus 4486, 6401 CZ Heerlen). An Inspector from this department will make the final decision. The Inspector's decision regarding the request is open to query.
For more information on this ruling can be found here.
Tax Information Line for Non-resident Tax Issues is open Monday to Thursday from 8 a.m. until 8 p.m. and on Friday from 8 a.m. to 5 p.m.:
- when calling from abroad: (+31) 555 385385
- when calling in the Netherlands: (055) 5385385