For these foreign entrepreneurs it is important that they are well informed, otherwise they can be confronted with unexpected tax risks and liabilities.

Subcontracting – Tax triggered

If a subcontractor is hired from abroad, several taxes might triggered for the subcontractor in the Netherlands, such as:

• Income tax
• Wage tax
• Social security contributions
• VAT
• Corporate income tax

MFFA Tax Advice assists to monitor the risks and pitfalls of the subcontractor in the Netherlands. For example: working for a short term in the Netherlands might trigger the creation of an unwanted permanent establishment for the foreign company. As a result, compliance and other registrations might be required.

See also our article about commencing an assignment in the Netherlands

What can MFFA Tax Advice do for you?

If you start as subcontractor in Holland, we can assist you with:

• Invoicing requirements and what to do with VAT?
• Arrange a work permit and registration of foreign employees in the Netherlands (apply tax numbers)
• Advice 183 days rule and risk of permanent establishment
• Wage tax and social security requirements / obligations in the Netherlands

Would you like more information about subcontracting?

Do you want more info about subcontractor in the Netherlands and want to reduce the risk of any liability? You can contact us here