The tax obligations for Orientation permit holders in the Netherlands generally depend on the status of your employment during the 12 months. Irrespective of the type of job, the income earned in the Netherlands is subject to income tax. The exact tax obligations vary depending on whether you are working as a freelancer, an employee, or setting up your own business.
- Working as a freelancer: You must file an annual income tax return and pay taxes on your freelance earnings. Freelancers, however, do not qualify for the 30% ruling policy.
- Currently employed:Your employer in the Netherlands is responsible for the social contributions and income tax deductions from your salary. You may also be eligible for the 30% ruling policy if you convert to a highly skilled migrant permit, if a foreign company hires you for having rare or specialized experience, or if you meet the minimum annual salary requirements, etc.
- Starting your own business: You can transition to a residence permit for a self-employed person if you wish to continue your business beyond the duration of the Orientation year visa, and you may qualify for the 30% ruling policy upon eligibility.