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HOW TO FILL OUT THE PAYROLL TAX FORM?

After your successful application process at Port of Opportunities, the time has almost come. Your first working day at a new organization. The Netherlands is a bit of a weird country where we do things slightly different when it comes to taxes. Before you start working for your employer as an employee, you must fill out the payroll tax form. But what is it precisely? And why do you have to fill this out? And finally, how do you fill out the tax form?

What is the payroll tax form?

The Dutch government finances certain facilities for its citizens. This includes the maintenance and construction of roads, hospitals, healthcare and schools. Or, in addition, the fire brigade and the police. That’s why every citizen in the Netherlands pays tax. You don't only pay tax in shops when you buy a luxury product or do your grocery shopping, for example. You also pay taxes through your wages. Your employer is obliged to withhold payroll tax from your salary. In order for your boss to do this, your manager needs your personal data. The payroll tax form is a legal document on which you provide your employer with this personal information.


Why do you need to fill out this form?

With the payroll tax form you not only contribute to matters as mentioned above. You can also apply for a payroll tax credit via the same form. Which means that the tax authorities withhold less money from your wages. That is why it is important that you complete this form. Before completing this form, you should be aware of the following.

To obtain the tax reduction, you may only have the payroll tax form applied by 1 employer or benefits agency. Thus, if you receive multiple salaries, the tax credit applies to only 1 salary. If you have more than one employer, it’s smart to apply the tax reduction to the highest income. The more salary you earn in the Netherlands, the higher the tax. You fill out separate forms for each employment relationship.

Note that it’s mandatory to fill out the payroll tax form correctly. If you don’t provide your personal data or you provide them incorrectly, your boss or benefits agency must withhold 52% wage tax/national insurance contributions. This rate also applies, if you aren’t able to prove your identity to your employer.


What do you need to fill out this form?

In order to fill out the form correctly, you need a valid ID and BSN number. And you need a residential address – where you can live permanently (so not a holiday home or temporary shelter). Be prepared that you bring valid documents and information on your first working day. Most employers let you complete this form on the first day of work. Do you have everything you need to complete the payroll tax form? We offer you some instructions in the pictures.

Would you like to practice or view the form? On this page from the Dutch Tax Administration you can download the payroll tax form.


 


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