Contracting in the NETHERLANDS with White November

Transcription

1 Contracting in the NETHERLANDS with White November 1

2 Contents About us General tax information What to do when you first come to The Netherlands Public Transport Accommodation Why White November International Contracting? Instructions for Employees Working in Finland

3 About us White November International Contracting (WNIC) work with international contractors across the EU/EEA and help each contractor to get better retention rates for the contracts they are working on, whilst being wholly compliant in their country of operation. White November International Contracting head office is based in Malta. Malta has an extremely attractive tax refund system approved by the EU. Local company, financial, and tax legislation are founded on UK law. From our head office in Malta, we are currently registered as employers and operate our solutions across the following countries within the EU/EEA: Norway Sweden Belgium Denmark France Ireland Germany Finland The Netherlands Luxembourg Czech Republic. 3

4 General tax information The Dutch tax year is from 1st January of each year and all tax returns must be filed by April 1st of the following year. Tax rates are banded between 33% and 52% dependent on your income, but this also is tempered by the 30% ruling which may apply to you. There are many different variables that can influence your tax rate. However, as an example, there are the basic income tax rates in 2016 for those below retirement age: Up to 19,922: 8.4% EUR 19,922 EUR 33,715: 12.25% EUR 33,715 EUR 66,421: 40.40% EUR 66,421+: 52% 4 4

5 The 30% ruling The 30 percent ruling Dutch tax exemption or incentive is for foreign employees who are hired by a registered company in the Netherlands but established somewhere else in the EU. The tax-free allowance is a compensation for the expenses that the employee has by working outside his or her home country. To be eligible for the 30 percent ruling the following requirements must be met: the employee works for an employer that is registered with the Dutch tax office and pays payroll tax, employer and employee have to agree in writing that the 30 percent ruling is applicable, the employee has to be transferred from abroad or has to be recruited abroad, the employee did not reside within 150km from the Dutch border for the last 18 out of 24 months at the time of hiring, the employee's salary is at least EUR 36,889 per annum, the employee needs to have expertise that is scarcely available in the Netherlands.. Less strict rules apply for persons who have a PhD or Master's degree and are younger than 30 years old. There is also a minimum salary requirement which is EUR 28,041 taxable. If the PhD was completed in the Netherlands, the requirement of 'being recruited from abroad' does not have to be met if the candidate is hired within a year of completing his or her studies. However, there is an eight year time limit to be able to receive the 30 percent ruling. Any times spent in the Netherlands over 25 years will go towards your duration of claiming the 30 percent ruling. 5 5

6 What to do when you first come to The Netherlands Get Registered You must register yourself within 5 days of being in the Netherlands. You will need to register yourself at your local town hall to obtain a BSN Number. This number is extremely important. Being registered allows the Basisregistratie personen (BRP or Municipal Personal Records Database), to track the size of the Dutch population and to allocate the right municipal taxes to each household. One of the most important reasons to register is that you will then receive your BSN number (personal public service number), which you need for all your administration in the Netherlands. This includes opening a bank account, receiving your salary, visiting a doctor, getting health insurance. You will need to make an appointment to register for your number. You will need to call your local town hall and ask for an appointment for a "registration from abroad" (inschrijven vanuit het buitenland). 6

7 Documents to take with you You will need to take your lease/rent agreement (if you are renting) with you and your passport. It is also required to bring an original copy of your birth certificate and if applicable an original copy of your marriage certificate. If you are staying in a hotel for the duration of your contract, you will be registered as a non-resident and still get your BSN number. This means you will not be able to benefit from the health and social security system. If at the time of registering you are staying in a hotel but you re looking for rental accommodation, you will have to apply as non-resident but once you have you lease agreement in hand, you will be able re-register as a full resident. Amsterdam - Call or (8am-6pm, Monday to Friday) - See Utrecht - Call See Rotterdam - Call or See Groningen - Call or The Hague - Call or (8:30am-5pm, Monday to Friday) - See The Nijmegen - Call (8.30am-5pm, Monday to Friday) or - See from abroad page (in Dutch) Eindhoven - Call or See from abroad page (in Dutch) - See 7

8 Public Transport The Dutch public transport system as most Nordic countries is well thought out and efficient even in the smaller towns and cities. As the country is small and with the exception of the major rivers that run through the country, it has a few significant barriers to the land transport systems. It is advised to purchase OV-chipkaart. You can either buy online or at the transport stations. Do note that you cannot purchase tickets on board a train. You will be charged a penalty if you do not purchase a ticket beforehand. The cost for the card is 7.50 and it is valid for 5 years even if you leave the Netherlands and come back at a later date. You can plan your journey by going on 8

9 Bus/Tram and Metro The Netherlands has an extensive bus, tram and Metro network that connects outlying districts and nearby villages with the city centres. Buses, trams and Metro s on most routes run once or several times per hour. The bus terminals are usually located at the train station making the use of public transport easier. You can use an OV-chipkaart. Taxi Taxis have a blue license plate (most Dutch vehicles have yellow plates). Taxi s cannot be hailed on the street in the Netherlands, but there are taxi stands at most train and bus stations, and also by hotels. To call for a taxi you can used the following links to book. Do note that taxi s can be very expensive in major cities and for short distance journeys. 9

10 Accommodation Renting a property in the Netherlands can be complicated as there is not enough properties for the demand thus making properties very expensive even for a small property. Dutch law is very pro tenant. A Dutch tenancy agreement can be either for an indefinite period or a fixed period of time. In most cases you will have a one-month termination notice period. The agreement can only be terminated by the tenant. A tenancy agreement is usually written, though oral agreements are valid as well. It is strongly advised to get a written agreement. Make sure you understand all the terms and conditions before signing the contract. It is very important if your property is furnished to ask for an inventory of all the items, so that there are no problems further down line when you come to end of your tenancy. 10 Like most countries the landlord will ask for a deposit (Borg) between 1-2 months rent up front. You can also negotiate the conditions concerning the return date of the deposit or try to use it for paying the last month s rent. It is very common for landlords to ask for additional guarantees to rent their property to you as the Dutch legal systems doesn t offer much protection for landlords. If you are working, you will need to provide a copy of a pay slip (Salarisstrook) as proofof your income. Please see the links below of recommend estate agents. 10

11 Why White November International Contracting? White November Group and its sister companies have been in operation for over a decade. White November is a management consultancy specialising in bespoke corporate and tax efficient solutions for high net worth individuals and small companies. In 2011, White November was approached by a group of specialist contractors whom were based in Scandinavia for a global oil and gas entity. These contractors were high earners and felt uncomfortable with the nature of solutions being offered by traditional umbrella companies both in terms of compliance and reputations. This same group of contractors approached WN with a mandate to provide a bespoke solution that allowed them to work in Scandinavia in a tax compliant and fully insured manner, while optimising their retention of remuneration. It was out of this mandate that our Partnership Solution was created. In servicing these contractors our researched showed that the European Contracting industry was poorly serviced. Many competitors were offering opaque solutions which were not tax compliant for the contractors and reputationally risky for agencies and end clients. We noticed a market gap for a high end provider to provide compliant solutions that are tax efficient and offer long term orientated options and strategies to contractors. Following much demand and success, White November s International Contracting (WNIC) became a permanent division within the group. While initially only serving the top 5% of earners within the Scandinavian contracting market, WNIC has expanded to provide solutions in ten European jurisdictions and now offers both solutions for contractors at all levels of remuneration. Disclaimer: Whilst every effort has been made to ensure that the details contained herein are correct and reflect the conditions at the time of publishing (December 2016), it does not constitute legal or professional advice. White November International Contracting does not accept responsibility, legal or otherwise, for any errors or omissions. 11

12 Tel.: Web: Malta Office Level 8, The Plaza Commercial Centre Bisazza Street SLM1640 Sliema Malta 12