Tax regulations
Whether or not you have to pay taxes when you are working at our institute depends on a number of factors. If you have a contract of employment, you automatically become liable for income tax and social security contributions (health, nursing care, pension, and unemployment insurance) in the Netherlands.
To ensure that you do not pay taxes in two countries, there is currently a double taxation agreement between the Netherlands and a number of countries governing the country in which your tax contributions are paid.
Income tax
If you are liable for taxes in the Netherlands, your employer will deduct the tax and contributions from your monthly salary and pay them directly to the authorities. The rate of taxation depends on how much you earn, your family circumstances, and the tax bracket based on this.
Tax returns
At the end of a calendar year, before May 1st of the following year, you have the option to apply to the tax office for income tax adjustment at your place of residence, so you may have part of the taxes you have paid refunded.
Please note that in some cases, it might also be possible that you will have to pay additional tax! For example, when you have two jobs and have paid too little tax for one of those jobs. Or when your income has increased during the year (for example, change form PhD student position to scientific staff position). Changes in your personal (family or housing) situation may also affect the tax return.
It is best to consult a tax advisor to help you with this. You will have to pay for this, but a tax advisor can help you set up a tax return.
Here are some links for professional help with your tax declaration:
DigiD
To get access to the online services of the Belastingdienst, you are required to apply for a DigiD.
DigiD stands for Digital Identity and you can use it to get access to a great number of online services offered by Dutch government agencies. DigiD is only available to people who are registered in a Dutch municipality and have a burgerservicenummer (BSN).
Please click here to get more information about DigiD and how to apply for a DigiD.
30% tax ruling
Employees who come to work in the Netherlands from another country are known as extraterritorial employees. If these employees meet certain conditions, they are eligible for a special expense allowance scheme: the 30% tax ruling.
Under this facility, the employer may provide 30% of the wages from present employments as an allowance including compensation for the additional costs of the employee's temporary stay in the Netherlands. This allowance is tax-free.
More information about this facility can be found on the following Belastingdienst website.
As per director's decision we can apply the 30% ruling for highly qualified foreign employees. If this is applicable to you, you will be informed about this by HR and they will prepare all the necessary paperwork for you.
If you are an employee who benefits from the 30% ruling, then both you and your family can exchange your driving license for a Dutch equivalent, regardless of which country you are from. Please click here for more information.
Tax benefits
Individual incomes can vary. In order to ensure that the health insurance premium is affordable for everyone, there is healthcare allowance (zorgtoeslag). This covers some of the cost of the premium. Eligibility for the healthcare allowance is dependent on income. If you earn less than a specific amount, you will be entitled to the healthcare allowance. The lower your income, the higher your healthcare allowance will be. For more information, please check Belastingdienst/Zorgtoeslag.
Many private apartments qualify for a rent subsidy from the Dutch government that could significantly lower your monthly rent. To qualify you need to be registered with the municipality and you need to be in possession of a valid residence permit for the Netherlands. Please check the website of the Belastingdienst/Huurtoeslag for more information and conditions.
If you place your child at a childcare centre, it might be possible that you are entitled to receive a childcare allowance. This covers part of the cost of the premium. Eligibility for the childcare allowance is dependent on income. For more information, please check Belastingdienst/Kinderopvangtoeslag.
More information about taxation in the Netherlands in English can be found here: