Spouse, civil partner, or children working in the company
If you own a company in the Netherlands and your spouse or civil partner or your child starts working for you, you can arrange this in several ways. Depending on the your choice, you report the change(s) to KVK or the Netherlands Tax Administration. And sometimes you record it with a civil-law notary.
Your spouse or partner joins your company
You can arrange this in 3 ways:
Then the following applies:
- You conclude an employment contract with your spouse or partner (by marriage or registered partnership). Your partner is then employed and has the same rights as your other staff, and will be insured under the employee insurance schemes.
Is your partner your company's the first employee? Then you must register as an employer with the Tax Administration.
Your partner works voluntarily in your company or receives compensation for this (employment remuneration benefit). The amount of the compensation must match the type of work.
Collaboration deduction for tax partners
If you pay your tax partner compensation, you may be entitled to the co-working partner tax relief. You can then deduct an amount from your income tax return.
Your partner can become a co-owner if your company is:
For a BV and an NV, you must have this recorded by a notary. Your partner can then become a co-director/major shareholder (directeur grootaandeelhouder, DGA).
You do not have to arrange a VOF or professional partnership with a civil-law notary. It is, however, wise to set out your agreements in a cooperation contract.
Report to KVK that your partner has become a co-owner. If your partner is joining your CV as a silent partner, you must report this to the Tax Administration (in Dutch).
Does your company have a legal structure other than a BV, CV, VOF, maatschap or NV? Then you must first change the legal structure.
Tips
- Discuss your situation with your accountant to find out which solution is best for you and your partner or child.
- Also consider liability for debts if your partner or child joins your company or becomes a co-owner. The liability depends on the legal structure of your company. The form of cohabitation with your partner, or of your child with their partner is also important.
Your child working in your company
You can arrange this in 3 ways:
Then the following applies
- You give your child an employment contract. Your child then has the same employment conditions as other employees and is insured under the employee insurance schemes.
If your child is your company's first employee, you must register as an employer with the Tax Administration.
Your child is at least 15 years old and does not receive any profit from the company. The family relationship makes the working conditions different from those of the other employees. This means your child has fictitious employment (fictieve dienstbetrekking).
In the case of a fictitious employment relationship:
- you must withhold wage tax/national insurance contributions and pay the healthcare insurance contribution (ZVW).
- your child is not insured under the employee insurance schemes.
- you must comply with all administrative obligations (such as keeping a copy of the identity document in the records).
Simplified payroll tax scheme
Under certain conditions you may use the simplified scheme for wage tax/national insurance contributions and the ZVW for children working in your company. Among other things, you only need to file a payroll tax return for your child(ren) once a year. You need a separate payroll tax number, which you can request using the form ‘Notification of payroll tax for employer of cooperating children’ (in Dutch).
Read about the simplified scheme and conditions in Chapter 18, Section 11 of the Payroll Taxes Handbook (in Dutch).
Your child can become a co-owner if your company is:
For a BV and an NV, you must have this recorded by a notary. Your child can then become a co-director/major shareholder (directeur grootaandeelhouder, DGA).
You do not have to arrange a VOF or professional partnership with a civil-law notary. It is, however, wise to set out your agreements in a cooperation contract.
Report to KVK that your child has become a co-owner. If your child is joining your CV as a silent partner, you must report this to the Tax Administration (in Dutch).
Does your company have a legal structure other than a BV, CV, VOF, maatschap or NV? Then you must first change the legal structure.