If an employee is being assigned to a Dutch entity of an international group, then the foreign group company should be the withholding agent for Dutch payroll taxes. Upon request, however, the Dutch part of the group may act as the withholding agent (‘verleggingsregeling’). In the budget 2017 it is proposed to allow for the Dutch entity to act as withholding agent even when the employee is assigned to the Netherlands but not to the relevant Dutch group entity.