Accon avm enters into a collaboration agreement with the Dutch Tax Authority

The Dutch Tax Authority and consultancy and audit firm accon■avm have entered into a collaboration agreement setting out the method for payroll services for foreign businesses in the Netherlands. By determining the method in advance, accon■avm will prevent discussions arising afterwards about the manner in which income tax and social security contributions deducted by the employer will be settled abroad.

accon■avm has been processing the salaries for employers with employees working in the Netherlands for over 15 years. It works for businesses in amongst others Germany, England, Austria, Switzerland, Canada, Portugal and the USA. Alexander van Kleij, Head of the International Employer Services Team at Accon avm: “We regard this agreement as a seal of approval from the Dutch Tax Authority. And we are quite proud of that. Due to the arrangements, both of us can work more efficiently and we will have a direct line with the tax office in Heerlen to quickly solve questions and problems. Moreover, payroll tax forms will now be authorised on the basis of confidence in our system. Payroll processing abroad and in the Netherlands will be coordinated according to the arrangements, so that levies are imposed in the appropriate country. This eliminates the risk of incorrect wage deductions for businesses.”

A good solution for businesses working with subcontractors or agency staff

The agreement is in particular a solution for industries where subcontractors are part of the operations, such as the construction and employment agency sector, and foreign businesses running an operation in the Netherlands, for which accon■avm takes over the HRM part. Arjen Tompkins, International Tax Consultant: “A company supplying work in the Netherlands will encounter tax rules in two countries: the Netherlands and the country of origin. It is tricky to keep clear which country should make the deduction, the amount of the deduction and where it should be deducted. In particular when large groups of employees are involved. The current arrangements solve this problem and offers transparency and a reduction of risks for the main contractor or the hirer of foreign labour.

More information

If you would like more information about payroll administration for your employees working in the Netherlands, accon■avm International Employer Services can carry out your total payroll administration through an efficient and online system, Loket.nl. For more information, please visit our website page: Payroll  or contact Alexander van Kleij at international@acconavm.nl