G-account in the Netherlands
A G-account is required when working with payroll, subcontractors, or temporary projects in sectors like construction or staffing. The G-account serves as a specialized bank account for managing taxes and social security contributions for subcontractors, operated under the consent of Dutch tax authorities. It ensures that taxes and social security contributions are safely paid to the Dutch tax authorities and helps prevent chain liability. We assist businesses with fast G-account setup and guide them clearly through Dutch regulations to stay fully compliant.
What is a G-account?
In the Netherlands, a G-account is established through an agreement between three parties: the supplier of labor, the bank, and the Dutch tax authority. Setting it up requires formal approval from the tax authority. Once approved, funds within a G-account are designated primarily for paying payroll taxes under Dutch law.
G-account assistance in the Netherlands
Our G-account services cover every step:
- Facilitating agreement formation: We assist in creating clear agreements among payrollers, banks, and the Dutch tax authority to define roles and responsibilities.
- Streamlining approval facilitation: We simplify the approval process by formally requesting clearance from the tax authority.
- Providing implementation support: We oversee the finalization of agreements between suppliers and banks, establishing G-accounts for exclusive payroll tax payments under Dutch law.
- Speeding up the process: With our strong network, we accelerate setup and make the entire process smooth and efficient.
Manage chain liability
According to Dutch law, main contractors may bear liability for tax and social security payments of subcontractors. The G-account allows main contractors to deposit a percentage of invoices into subcontractors’ G-account, earmarked exclusively for tax and social security payments to Dutch tax authorities. This mechanism significantly reduces main contractors’ liability for subcontractors’ tax obligations.
The Dutch G-account vs. the UK CIS
While the CIS primarily applies to construction in the UK, the Dutch G-account system extends to construction, cleaning, catering, security and other sectors. CIS is compulsory in the UK whereas Dutch G-accounts are generally required based on contract specifics. Regarding payment mechanisms, CIS deducts payments directly to HMRC while Dutch contractors deposit into subcontractors’ G-accounts. For refunds and offsets, CIS allows direct refund claims whereas the G-account system involves structured processes for refunds or offsets. Both systems require registration but Dutch regulations additionally mandate opening a G-account at a Dutch bank.
Even for temporary assignments in the Netherlands, more is involved than just a G-account. We provide support with work visas, legal advice, and all other compliance matters related to your operations.
360° Dutch compliance support
Even for temporary assignments in the Netherlands, more is involved than just a G-account. We provide support with work visas, legal advice, and all other compliance matters related to your operations. Examples of what we assist with:
- Setting up a Dutch entity
- Managing Dutch (split/shadow) payroll
- Providing tax and social security advice
- Guidance on the Dutch 30% ruling
- Legal advice on Dutch employment law
- Drafting Dutch employment contracts
- Compliance and risk management
- Managing visas and work permits such as Blue Cards, intra-company transfers, Highly Skilled Migrant visas, and combined residence and work permits
Need help with your G-account or compliance in the Netherlands?
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