Tax

Everyone who works in the Netherlands has to pay tax. You must register with the Tax and Customs Administration for this purpose.

You must apply for a Citizen Service Number (BSN) at the municipality where you work or live. This number is always given in documents such as your passport, driver’s license or ID card.

The Tax and Customs Administration has a duty of confidentiality. This means that they must treat your data confidentially.

It needs the following information about you:

• Citizen Service Number
• Initials, surname-prefixes and surname
• Date of birth
• The date you start work
• How much you earn and over what period.

There is a difference between paying tax when you work in paid employment or according to the ‘opting-in’ tax rule. Opting-in is also referred to as ‘working under a package of terms and conditions’. Here, we restrict ourselves to the term opting-in.

Your employer – for instance the brothel owner – pays sales tax and payroll tax. Your employer pays this over your normal income, but also over money for drinks and other extras.

Opting-in

Opting-in means that you work for an employer, but the Tax and Customs Administration does not regard you as being in paid employment. The same applies to the UWV Employee Insurance Agency (referred to below as the UWV), which deals with social benefits.

Your employer will register you with the Tax and Customs Administration. Your employer withholds taxes and social insurance contributions on your income and pays these to the Tax and Customs Administration and the UWV. You therefore do not need to do this yourself.

There are three important things you need to arrange to work according to the opting-in system:

1. Apply for a Citizen Service Number (BSN)
2. Fill out two forms given to you by your employer: ‘Verklaring Loonheffing Opting-in’ (statement of wage taxes opting-in – only in Dutch) and the ‘Overzicht Loonheffingen en privacy’ (statement of wage taxes and privacy – only in Dutch)
3. Give your employer a copy of your identity document (ID card) – never give them the original!

Self-employment

Make sure your records are up to date and correct. This is important for the Tax and Customs Administration. Engage an accountant if you cannot do your own bookkeeping properly = keep all records of your work and earnings in a cash book. You must keep your tax records for seven years.

Paid employment

Your employer can pay three types of wages:

• Fixed base pay: for the work you have agreed to and the agreed working hours
• Performance-based pay: an amount per sexual service
• Variable pay: an amount for your contribution to the drink sales.

Your employer pays your salary net and gives you a payslip for each payment. This shows what you have earned and what has been withheld. You are entitled to at least the minimum wage and holiday pay.

You receive an annual statement at the end of the year. Keep these records. You will need them to complete your income tax return.

Opting-in

Make agreements on what you earn as standard and on additional work. Sales tax is withheld on everything the client pays. What remains is divided between you and your employer.

With every payment, you should receive a statement showing what you have earned and how much tax has been withheld (a payslip). Keep these records carefully. You will need them – along with the annual statement – to complete your income tax return.

Important note:
Your employer is not allowed to stipulate your working hours or the clothes you wear when working under the opting-in system; you can keep the income from additional work. Your employer is not allowed to prohibit you from working for other operators.