Your employee in the Netherlands. Finally you found a good one, but located in the Netherlands. How does that work?
Your employee in the Netherlands
The moment you hire an employee in another country, like the Netherlands, local rules need to be obeyed. Simple rules as local labour law. For that you can connect to a local labour lawyer.
Then you have the registration as employer and the local tax to be paid. Traditionally you are to incorporate a vehicle in the Netherlands to employ the Dutch employee. Or you skip employment and you ask the ‘employee’ to invoice you instead. The employee is then suddenly an entrepreneur.
Your employee in the Netherlands actually an entrepreneur
Your employee you turned into an entrepreneur as you preferred not to set up a vehicle in the Netherlands. For the ‘employer’ that is simply having the employee do the hassle instead of the employer him or herself. The ‘employee’ initially sees lower tax to be paid.
Over time the ‘employee’ learns that no pension is build up. That no disability insurance is place. Unemployment has not been arranged. If the equivalent costs of the aforementioned is taken into account, the hourly rate is suddenly much lower than the gross salary for this job.
Good Dutch tax advice says: You should not turn an employee into an entrepreneur to skip formalities.
Your employee in the Netherlands being a true employee
We can help you set up a non resident employment for your Dutch employee. That implies the employee is a true employee. You are a true employer. The Dutch tax, social premiums obligations are handled by us. Labour law is done by labour law experts.
Frequently Asked Questions
Is the employee employed by us (the company)? Yes, the employee is employed by the company.
Do the Dutch rules apply with respect to trial period, fixed and temporary contracts? Indeed they do.
Is the employee subject to the Dutch social system? Yes the employee is.
Can the employee benefit from the mortgage deduction? Yes the employee can.
Can we apply for the 30% ruling should the employee qualify? Yes you can apply.
Is this non resident employment possible for work permit holders? No, for that an IND (immigration service) referend company is required. Non resident employment is not a referend company.
Tax is exciting
We think tax is exciting. Excited we are to assist foreign employers with their Dutch setup. Whether that is one employee or 500 employees does not make a difference for us in the services quote.
The other way around, should you need global payroll services, we can provide this as well. We can even provide specific Chinese payroll services if you like.
Feel free to contact us.