National Insurance tax and employee insurance contributions are levied on non-residents and residents alike, under a number of varying regulations.
Dutch Social Security 2015 : National Insurance Tax
Holding to the tax regulations for National Insurance, contributions to NI are levied at a maximum income amount reaching €33,589.
Currently, a cap of €9,455 relates to the tax itself. Several levy rebates can be deducted from this amount. National Insurance contributions paid over by an employee are not tax deductible. Contributions to National insurance and income tax are included as a single tax in the first two income brackets.
Employee Insurance Contributions: Dutch Social Security 2015
Contributions are to be paid up to a maximum income of €51,976. The rate of contribution depends on the industry where the employers work, however the average contribution gross amount sits at €5,785.
Dutch Social Security: Dutch Health Insurance Act
It is mandatory for all employees and residents subject to Dutch wage tax to have cover under the Zorgverzekeringswet, also known as the Dutch Health Insurance Act. It is also a requirement to have statutory health insurance cover.
The employees contribution is built up from a contribution of at least €1,170 (also including the own-risk amount of €375) which is paid over to the health insurance company alongside an income related contribution of 6.95% – with a maximum of €3,612 which is to be paid by the employer to the Dutch Revenue Authority.
Management Services in The Netherlands
EAFS can take complete control over administration and payroll when Working in Netherlands. We can also take full jurisdiction of dealings with the Dutch Tax and National Security Office. Fully specialised in this labour market, we can also offer services through EAFS Consulting BV, ensuring legality and helping you to gain the best possible marketplace retention rate. EAFS are also specialised in obtaining and implementing the 30% Tax Ruling, generally considered to be the most essential part of tax planning in the Netherlands.
Social Security and Tax are deducted at source, calculated on the tax card basis, submitted for each individual at the beginning of every fiscal year.