Doing Business in the Netherlands 2012 - American Chamber of ...

17.5.3 Status of the Employer
Doing Business in the Netherlands 2012
In order to apply for the 30% ruling, the employer is obliged to
withhold wage tax in the Netherlands. Moreover, the employer and
employee should file a joint application request with the Tax Inspector
in Heerlen (the Netherlands). Standard application forms are available
for this purpose. In principle, there is no time frame for the filing of
the request, but the application would be retroactive to the date on
which employment in the Netherlands commenced only if it is filed
within four months after that commencement date. If that period has
expired, the 30% ruling would take effect on the first day of the month
following the month in which the application form was filed. If the
30% ruling is not granted, it is possible to file an objection to the tax
inspector’s decision within six weeks.
17.6 Levy of Taxes
Dutch personal income tax is levied by a personal income tax
assessment based on a tax return submitted to Dutch tax authorities.
Taxpayers usually receive a tax return automatically, which they must
then file before 1 April of the following calendar year. An extension
of this period may be obtained by request. Wage tax, Dutch dividend
tax, or foreign withholding tax already paid on personal income for
the taxable year will be set off against the personal income tax due.
On balance, this may result in a refund or a payment of personal
income tax. Non-residents are not eligible for personal deductions,
e.g., for alimony payments or losses incurred for venture capital
investments. The only exception is the deduction for mortgage
interest paid on a house located in the Netherlands. Labor costs are
deductible by means of a “labor tax credit” for both resident and nonresident
taxpayers.
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