Netherlands (Holland) - Tax Guide for Freelance Contractors

Capital Consulting is fully registered as a Dutch payroll provider and, as a legal requirement, any individual working in the Netherlands must be employed by a Dutch payroll provider.

The individual is employed by Capital Consulting and income is paid in the form of salary, allowances and expenses, the proportion of each part depending on individual circumstances.

Salary, Tax & Social Security

Capital Consulting deducts tax and social security at source on a PAYE basis and payments are made to the relevant authorities on the employee’s behalf. The taxable amount may be reduced by obtaining a 30% allowance (effectively a 30% tax break, which is granted to specialised expatriate workers, subject to certain criteria). Expenses are largely covered under the umbrella of the 30% allowance although some further small deductions may be possible.

Capital Consulting will discuss your personal circumstances with you and help you to minimise your tax and social security liabilities, within the bounds of Dutch legislation.

Tax Returns

Income is managed tax efficiently, not just in the Netherlands but also in any other country where there may be a liability. A tax return is filed each year in the Netherlands with advice and assistance from Capital Consulting, who will also provide help with filing tax returns elsewhere, if required.