From the start of July 2012, the potential exposure to payroll taxes for employers provided by agency suppliers has been reduce. TMF Netherlands reviews the changes and how businesses can simplify their risks.
Companies hiring staff through agencies in the Netherlands are held liable for the correct calculation and charging of employment taxes, including employee and employer levies. This had been presenting a number of financial problems for companies reliant on their agencies where there had been failures by the supplier.
To overcome these problems, which had been restricting employment through agencies, the Dutch tax authorities have agreed to waive the employers obligations under the following conditions:
• The employment agency must be approved by the Dutch authorities
• The employer must deposit at least 25% of the fees in advance with the agency
• Details of the employer’s financial position must be freely available to the tax authorities
• Proof of the identity of the employed staff must be retained by the employer, included proof of residency
If you would like to learn more about the rules and requirements for employing staff in the Netherlands, please contact TMF Group.