Organisations certified by the SNA prove that their personnel administration is correct and up-to-date, that they pay all taxes on time and that their personnel are authorised to work in the Netherlands. Being certified protects customers and other business partners  from the  liability associated with upaid employee taxes and VAT and from the high fines associated with providing personnel unauthorised to work in the Netherlands.

In short, organisations registered and certified by the Stichting Normering Arbeid are turstworthy partners with which to do business. Dutch Pal is proud to have received the prestigious NEN4400-1 certification.

 Also, the IND and the Dutch tax authority (Belastingdienst) recently agreed that knowledge migrants will be considered to have the specific expertise needed to qualify for the 30% ruling.

For more information please contact us on +31 20 589 1025.

First of all, there is the question about what the Dutch 30% Tax Ruling actually is. The 30% Tax Ruling is a tax incentive for employees who come to work from outside the Netherlands. To be eligible the contractor must be employed by a Dutch employer, i.e., the contractor must have an employment contract with an employer who deducts Dutch payroll taxes. Also the contractor must be recruited from outside the Netherlands and the contractor must have ‘specific expertise’ which is unavailable or scarce in the Dutch labor market. Working in the IT sector fulfills the scarce skill set requirement. The 30% Tax ruling exempts an employee from paying taxes on 30% of gross income after the social security premiums such as unemployment insurance, national pension and disability insurance are deducted. Of the remaining amount 30% is deemed to be tax free. The tax schedules, which are quite high in the Netherlands, are applied to the remaining amount. After applying the 30% Ruling, the retention rate ends up being approximately 65%.

The 30% Ruling application process usually takes about 6-8 weeks. This means the first month’s salary will not include the 30% exemption. Luckily, the 30% ruling is granted retrospectively to the first day of employment. Once granted, the contractor will be paid the difference that should have been received retroactively to the start date of the contract. The granting period is for 10 years. Should a contractor leave the Netherlands once the project or contract has ended, it is very important for the contractor to let the Dutch authorities know. This way, the 10 year clock will stop ticking and will restart should the contractor come back to work in Holland at a later date.

In order to get paid in the Netherlands, one must obtain a Sofi-Number or BSN. This number is comparable to the National Insurance Number in the UK or the Social Security Number in the US. Dutch Pal will schedule the appointment for a new contractor immediately after arrival in the Netherlands.

Another question concerns Expenses which can be claimed. There are two types of expenses: those made on behalf of the client and those that are allowable against Dutch taxes. Client expenses, as long as they have been approved by the Client and supported by original receipts, will be reimbursed through the normal pay cycle. Expenses that are allowable against tax liability in the Netherlands include Travel Expenses to and from work (both addresses must be in the Netherlands). 19 Euro cents per kilometer can be claimed should travel be by automobile. Public transportation costs incurred while travelling to and from work supported by original receipts are also eligible for reimbursement. Note that taxi fares cannot be claimed if there is a public transportation (bus, tram, train, ferry) alternative.

The purchase of a new (not 2nd hand) bicycle can be claimed over each period of three years (total cost up to € 749). Note that this does not apply to mopeds, scooters, etc. Also books with topics related to the contractor’s job are considered tax allowable.

If the contractor has been granted the 30% Ruling, International School Fees can be claimed. The primary or secondary school must be qualified as an international school. Nurseries are not eligible and school fees refer only to educational, not boarding costs.

Other expenses which can be claimed through the annual Dutch Tax Return include alimony payments, mortgage interest payments for a primary residence and personal education.

To assure the complete satisfaction of the contracted employee, on time payment is crucial. With many payroll/management companies the contracted employee has to wait to be paid until after payment has been made to the payroll/management company. With some agencies the contracted employee can only be paid during a predefined pay cycle. Should a contracted employee miss the pay cycle, he may have to wait from several days up to a month to get paid. Dutch Pal has a scheme whereby the contracted employee gets paid within 1-3 days of receipt of the approved timesheet regardless of when the timesheet is received. The current Dutch Pal contracted employees are extremely happy because of our ability to pay on time.

Finally, all workers in the Netherlands must be covered by basic Dutch Health Insurance. For anyone who works in the Netherlands it is compulsory to be registered with a private Dutch health insurance provider. Dutch Pal has a collective scheme arrangement with de Amersfoortse through which employees receive a discount on their monthly premium. If a worker does not sign up for insurance within four months of starting work in the Netherlands, a fine may be levied in addition to having to back pay the monthly premiums retrospectively to the first workday in Holland. Premiums for basic Dutch Health Insurance currently run about €85,00 per month. Supplementary coverage may be bought to cover alternative health and dental care.