Netherlands: Social security treaty with China, benefits for companies

Netherlands: Social security treaty with China

A social security treaty between the Netherlands and China is expected to enter into force in 2017. Accordingly, with this agreement’s entry into force, it would be less costly for many Dutch companies in China to second employees to China.

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Once the treaty’s provisions are effective (expected to be in 2017), the number of double social security contributions and voluntary insurance payments will be scaled back. Dutch expats then would only have to pay Dutch state pension/surviving dependents’ and unemployment contributions. Conversely, Chinese expats would only have to pay Chinese social security contributions for the state pension and for unemployment. The social security treaty, however, does not grant a full exemption for all social insurance.

 

Read a November 2016 report prepared by the KPMG member firm in the Netherlands: Social security treaty between the Netherlands and China expected to take effect in 2017

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