Working remote in the Netherlands for a foreign employer is common. How this is to be set up from a Dutch wage tax point needs attention.
Working remote in the Netherlands
We get a lot of zoom requests to discuss working remote in the Netherlands and tax. These zoom meetings are free of charge, as we think they are awesomely exciting.
We update the person about the aspects of Dutch payroll and the wage tax rates. Seldom we see excitement in the face on the other end of the zoom with respect to our tax rates. Hence we wonder why the decision was made to move to the Netherlands. It turns out that having a Dutch partner is often the base of the decision to live in the Netherlands.
Running a payroll
The rule is that wage tax is to be paid in the country where the work is actually been done. This implies Dutch tax rules apply to working remote in the Netherlands for a foreign company.
We are quick to update the candidate about the existence of the so called 30% ruling. This implies 30% of the gross salary is not taxed. That makes an enormous difference.
The foreign employer is not keen on running a Dutch payroll. It is assumed that a Dutch entity is required and everything that comes with running an entity. We have a solution for this:
The non-resident employment payroll
This payroll is for an employer that has no presence in the Netherlands. No presence implies no office or desk rented for the Dutch employee, the Dutch employee does also not have a director title of the foreign company. In that case there is no Dutch permanent establishment.
Without such an establishment we are able to set up the non-resident employment payroll. This payroll is identical to a similar domestic situation. The difference for the foreign employer is that there are no other obligations, than the obligations related to the employment.
OrangeTax payroll team
The OrangeTax payroll team is a very experienced team setting up non-residents and resident payroll administrations. The experience shows in predictions whether a 30% ruling would be granted or not. Or experience in Collective Labour Agreements being applicable or not. And if applicable, how to comply with them. Making international payments less complex as well. The team is also very active in responding to questions and committed to a minimal number of work days for the turnaround.
Tax is Exciting
We think tax is exciting. If you are now exciting about setting up a payroll with us, please connect to payroll@orangetax.nl and we are eager to assist you. Our fees you find already on our website www.orangetax.com
