Dutch national with ties to The Netherlands are required to be on the Dutch payroll. This is now a requirement by law, in accordance with the double-taxation agreement between Ireland and The Netherlands which gives The Netherlands withholding income taxation rights. If you are based in Germany, you should also pay social insurance in Germany as well as income tax in the Netherlands.
Please find below some general notes on the Dutch payroll. Please note that this is an ongoing project that we are working on with the Belastingdienst and the Kamer Van Koophandel (KvK) so we may not have all the answers immediately while we wait for confirmation from them on certain taxation matters regarding your contract work.
We operate a Dutch payroll and will remit all your taxes and social insurance monthly on your behalf.
You may need to register for a BSN number, if you do not have one already. This is a Citizen Service Number. If you live in The Netherlands, please seek to obtain a BSN. The following link will explain the procedure in a simple, yet informative manner.
If you are living overseas and do not have a BSN, it is advised you call The Belastingdienst, to obtain further information on being able to register for a BSN, you may need to explain that you are working for an Irish Ltd company but have a contract for services agreement to fly aircraft on behalf of Ryanair.
Should you have any difficulty in obtaining a BSN, please let me know.
As a director of an Irish Ltd company, clients in The Netherlands may need to submit a Dutch tax-return to the relevant authority in a punctual manner through their own accountant. It is advised that you seek guidance on this from a Dutch accountant, if necessary. At present, we do not offer this service, however this may change in the future.
We will continue to submit any Irish returns on your behalf.
The Dutch payroll will be calculated in Euros and your payslip will indicate your net pay. You will no longer receive an Irish payslip. You will continue to be paid in Euros from your company bank account.
Expenses and take home pay:
Expenses are strictly enforced as actual expenses only.* You will need to keep the proof of payment to claim the expense.
Please note that it is your responsibility to claim expenses in accordance with these rules and keep proof of expenditure.
You should also be uploading receipts into OAM where possible.
* - please note. Salary options are not possible.
You will need to upload the expenses that you have incurred on a monthly basis. The deadline is the 5th of each month. I have attached an allowable expenses document.
E.g - Expenses incurred throughout the month of November, are to be uploaded to OAM by the 5th December. This will allow enough time for us to check the expenses and process them in the September payroll.
Please be as descriptive as possible when commenting in the remarks section whilst uploading. I.e If you are OOB state the location, dates, reason.
If you have any questions please contact email@example.com.
Further information on expenses can be found here:
Income tax rates:
|Combined rates in Box 1 for persons younger than retirement age|
||Tax per bracket
||Premium National Insurance
||Total per bracket
|Of more than
||But less than
Total premium for the national insurance is 28.15% which is divided in:
· AOW (General Old-age Pensions Act ): 17.9%
· ANW (General Surviving Relatives Act): 0.6%
· Wlz (Act on long-term care): 9.65%
These are only guidelines. We will be receiving more information from the authorities soon and will be sending on information regarding expenses soon.