HomepagePayroll tax
If you employ staff, you must deduct payroll tax from their salaries. Payroll tax consists of income tax and social insurance contributions. You must submit returns for payroll tax at the Dutch Tax and Customs Administration. Employers may reimburse certain costs or provide certain allowances tax free, including travelling expenses, temporary accommodation expenses and costs of education and training. Detailed information on payroll tax can be found on the website of the Dutch Tax and Customs Administration.
Select one of the topics below for more information.
Payroll tax
Payroll tax
If you employ staff, you must deduct payroll tax (loonbelasting) from their salaries. Payroll tax consists of income tax and social insurance contributions.
Liability for payroll tax and turnover tax
If you hire temporary staff or if you have work carried out by staff of a contractor/subcontractor, the Dutch Tax and Customs Administration may hold you liable for any payroll tax that is not paid by the intermediary or contractor/subcontractor.
Sector funds premium
As an employer, you are required to pay a percentage of your employees’ wages to the sector fund (sectorfonds) of which you are an obligatory member.
Travel allowance
You are allowed to pay a predetermined travel allowance (reiskostenvergoeding) to your employees who have a fixed place of work.
Employer’s contribution towards childcare
If you own a company in the Netherlands and employ staff, you are required to pay an employer’s contribution towards the cost of childcare.
