Social Security, Insurance and Tax

The Dutch social-security system
The employment insurance scheme includes unemployment benefit (WW), health insurance (ZVW) and disability benefit (WIA). The national insurance laws provide for old-age benefits (AOW) and child benefit (AKW). There are also social security benefits relating to bereavement and long-term illness.

In general you are covered by the Dutch social security system if you hold a residence permit, have a valid work permit (if required) and have not opted to pay in your home country. Employee insurance schemes apply to people legally employed in the Netherlands and national insurance relates to anyone with a Dutch residence permit.

Your employer will pay the majority of your contributions for the employment insurance schemes, but you also pay a proportion, which is deducted directly from your salary. Contributions to national insurance schemes are income-dependent, but there is a ceiling for contributions just as there is for benefits. The tax office collects the national insurance scheme contributions.

What to do
Nothing. Your employer will register you with the Dutch authorities. If you have two or more jobs in different countries, check what is applicable with your employer.

Insurance
The type and amount of insurance you will want to purchase is largely a personal decision. The following main types of insurance are available:

• Health insurance (mandatory)
• Vehicle insurance (mandatory for those with a vehicle)
• Personal (third party) insurance
• House (bricks and mortar) insurance
• House contents insurance
• Legal costs insurance

Setting up health insurance
Most people will be covered by their employer's scheme. In this case your HR Manager will be able to advise you on the correct procedure. Those who need to take out their own cover should contact an insurance company.

E106, E128, EHIC
With the E106 you should arrange registration via CZ Zorgverzekeraars (PO Box 90152, 5000 LD Tilburg) to receive the treaty policy. If you have a so-called EHIC, registration with CZ is not necessary. For holders of an E128 form, registration must be arranged via CZ.

Setting up other insurance
Insurance is supplied by banks as well as insurance companies. Most companies that supply company health insurance policies also supply other types of insurance.

How to find an insurance company
See the section "verzekeringsmaatschappijen" in the Yellow Pages (http://www.goudengids.nl, choose English).

Taxation
Everyone living in the Netherlands needs a Social-Fiscal (SOFI) number (this will be re-named the Citizen Service Number ("Burger Service Nummer" or BSN) in 2006). As from July 2006 you will need this number before you can start work.

Everyone resident must be registered at the Town Hall, and the head of the household (non-EU citizens) must also be able to show that he or she may legally work here before they can receive their SOFI number.

To obtain a SOFI number:

1. Call the central Tax Office to request an appointment (0800 0543). They will take your name and phone number and ask where the appointment should be made.
2. The local Tax office will call you back within two working days to make the actual appointment. This will be during office hours.
3. Go to the Tax Office to collect the number. You will need your passport, proof that you may legally work in the Netherlands, and an address (in some cases non-EU citizens must also have registered at the Town Hall).

Contact details of the Regional Tax Office
Karel de Grotelaan 4
5616 CA Eindhoven
Tel.: 0800 0543

The 30% tax ruling
Foreigners may be eligible for an advantageous income tax regulation known as the "30% ruling", whereby the first 30% of their income is entirely free of tax for a certain period of time. According to the ruling an employer may provide a tax-free allowance of 30% of the total salary of an employee. Any application for the 30% ruling must be made by the employer.

How to apply for the 30% tax rule
Each case is specific and not all information is relevant. In practice it is easiest to see your HR Manager and discuss your case with him/her.