Normally, the salary of a cross-border worker is taxed in the country where their employer is located, except to the extent that they do not perform their work in that country.
The tax treaty between the Netherlands and Germany is now being amended so that cross-border workers can work from home for a maximum of 34 days per year, while the salary related to those days remains fully taxed in the country where the employer is located.
Before the amendment takes effect, the parliaments of both the Netherlands and Germany must give their approval. A declaration of intent has also been signed to further discuss a work-from-home arrangement of more than 34 days per year.
