A nanny working under the RDaH scheme (Dutch scheme for nannies and domestic helpers that makes taxes simple) is required to pay two main mandatory contributions.
The first is income tax (inkomstenbelasting), which ranges from 36% to 49% of income, depending on earnings. This tax already includes social security contributions. The second mandatory payment is health insurance (zorgverzekering), which costs approximately €140–€160 per month and is paid directly to the insurance company. A key advantage of the RDaH scheme is that VAT (btw) is not charged at all.
Payment Procedure:
The main tax procedure follows an annual cycle. Each year, by May 1st of the following year, you must file a tax return (aangifte) declaring your total income for the previous year. Based on this declaration, the Tax Office (Belastingdienst) calculates the exact tax amount.
During the year, a system of advance payments applies. This is called voorlopige aanslag – a preliminary tax assessment. Based on your estimated annual income, you pay the tax in advance, either monthly or quarterly. After submitting the annual return, usually in July–August, the final calculation is made. If you overpaid, the difference is refunded; if you underpaid, the remaining amount must be paid.
What You Need to Do:
The administrative process is fairly simple. You need to issue invoices to your clients without including VAT, receive payments only via bank transfer (not in cash), keep all documents and invoices for at least seven years, and file a tax return once a year.
In summary, there is one main tax – income tax – plus mandatory health insurance. Everything else under the RDaH scheme is designed to be as straightforward as possible.
The first is income tax (inkomstenbelasting), which ranges from 36% to 49% of income, depending on earnings. This tax already includes social security contributions. The second mandatory payment is health insurance (zorgverzekering), which costs approximately €140–€160 per month and is paid directly to the insurance company. A key advantage of the RDaH scheme is that VAT (btw) is not charged at all.
Payment Procedure:
The main tax procedure follows an annual cycle. Each year, by May 1st of the following year, you must file a tax return (aangifte) declaring your total income for the previous year. Based on this declaration, the Tax Office (Belastingdienst) calculates the exact tax amount.
During the year, a system of advance payments applies. This is called voorlopige aanslag – a preliminary tax assessment. Based on your estimated annual income, you pay the tax in advance, either monthly or quarterly. After submitting the annual return, usually in July–August, the final calculation is made. If you overpaid, the difference is refunded; if you underpaid, the remaining amount must be paid.
What You Need to Do:
The administrative process is fairly simple. You need to issue invoices to your clients without including VAT, receive payments only via bank transfer (not in cash), keep all documents and invoices for at least seven years, and file a tax return once a year.
In summary, there is one main tax – income tax – plus mandatory health insurance. Everything else under the RDaH scheme is designed to be as straightforward as possible.