Tax information in the Netherlands

Sofi-number

If you intend to work in the Netherlands, you must register with the tax office (Belastingdienst). Make sure you bring your passport. The Belastingdienst will give you a Sofi-number. A Sofi-number is necessary for deducting your taxes and social security contributions. Please make sure that you have registered at the town hall before you request your Sofi-number.

Please note that having a Sofi-number does not automatically mean you are permitted to work in the Netherlands. You can check out further information about this on www.workpermit.nl

The Central Tax Office information number is: 0800-0543. Alternatively you can visit www.belastingdienst.nl

For employees outside the Netherlands, there is tax incentive called the 30% ruling. Should you qualify, only 70% instead of 100% of your earned income will be taxed; the other 30% is considered to be a tax-free expense allowance. If you wish to qualify for the 30% ruling, you have to satisfy a number of conditions at the moment you enter the Netherlands.

These are as follows:

Dutch Employer

You need to have a “Dutch Employer”, i.e. you need to have an employment contract with an employer who deducts Dutch payroll tax. A company established in the UK can be regarded as a “Dutch Employer” for this purpose as long as the company is appointed as a “Wage Withholding Entity”

Residence

You need to be recruited from outside the Netherlands. The address of your residency abroad (like the UK) is therefore listed on your contract schedule. This should correspond to the address on the 30% ruling application form.

Scarce Expertise

You must have a “specific expertise” which is not available or scarce on the Dutch labour market.

Dutch Payroll

There has to be a “withholding entity” i.e. a Dutch employer deducting payroll tax. In this case TCP.

Date of Agreement

The 30% ruling should be applied for within four months after starting your contract. The ruling will then be granted from your starting date onwards. If the Dutch Tax authorities receive your application after four months, the ruling will only be granted from the date that the employer signed the contract. It is therefore essential that you return the completed application form immediately.