- Overview: Netherlands
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in the Netherlands
Getting your business up-and-running in the Netherlands can be challenging, especially if you do not speak the native language. Establishing your own business entity in the Netherlands is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in the Netherlands, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in the Netherlands, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in the Netherlands
Navigating the Dutch legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Dutch speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in the Netherlands without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in the Netherlands. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in the Netherlands
Employment related taxes
Personal income tax (PIT). The Netherlands taxes its residents on their worldwide income; non-residents are subject to tax only on income derived from specific sources in the Netherlands (mainly income from employment, director’s fees, business income, and income from Dutch immovable property).
In the Netherlands, worldwide income is divided into three different types of taxable income, and each income type is taxed separately under its own schedule, referred to as a ‘box’. Each box has its own tax rate(s). An individual’s taxable income is based on the aggregate income in these three boxes.
Box 1 refers to taxable income from work and home ownership, and includes the following:
- Employment income
- Home ownership of a principal residence (deemed income)
- Periodic receipts and payments
- Benefits relating to income provisions.
Box 2 refers to taxable income from a substantial interest, and box 3 applies to taxable income from savings and investment.
Non-payroll taxes in the Netherlands
VAT, known in Dutch as the Belasting over de Toegevoegde Waarde or btw, is payable on the supply of goods and services rendered in the Netherlands as well as on the importation of goods and on the ‘intra-European’ acquisition of goods. There are three VAT rates.
The following domestic transactions are exempt from VAT:
- The supply of immovable property two years after putting it into use and lease.
- Medical, cultural, social, and educational services
- Services provided by banks and other financial institutions in connection with payment transactions and the granting of credit facilities.
- Insurance transactions
- Transactions in shares.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in the Netherlands
Compensating your local and expat workforce in the Netherlands and closely adhering to Dutch taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Dutch labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in the Netherlands by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Dutch laws. To get the latest updates on taxation in the Netherlands and in 190 countries worldwide, contact Acumen’s team of global employment experts.