Exemption application wage tax rate anonymous employees due to delay in assignment of social security numbers

If an employer does not have an employee's Dutch social security number (BSN) he is obliged to apply the so-called ‘anonymous rate’ (anoniementarief) which, at 52%, is considerably higher than the normal rate. Employees from abroad must request this BSN from their Dutch municipality. The waiting times for making an [...]

2022-09-22T12:12:38+00:0022 September 2022|tax + global mobility|

Withdrawal of exemption method for executive and supervisory directors’ remunerations can result in financial disadvantage

On July 8, 2022, the State Secretary of Finance withdrew the approval for the application of the exemption method for executive and supervisory directors' remunerations. For residents of the Netherlands who receive such remunerations from an entity established outside the Netherlands, this can result in a financial disadvantage. What is [...]

2022-08-05T09:58:54+00:005 August 2022|tax + global mobility|

Permanent establishment policy re. VAT adjusted

As a result of a judgment of the European Court of Justice (Danske Bank case), the Netherlands has adjusted its policy on permanent establishments. A permanent establishment, together with the head office, forms one taxable person, so that no VAT is levied on mutual (‘internal’) services. The policy change concerns [...]

2022-07-18T13:52:53+00:0012 July 2022|vat|

Application of work-related expenses scheme without designation in the payroll

To provide an employee tax-free benefits or allowances in the free space (“vrije ruimte”) of the work-related expenses scheme, those need to be designated as such in the Dutch payroll. Consequently, employees of employers who are not withholding agents for Dutch wage tax typically do not have the opportunity to benefit from this. However, [...]

2022-07-18T14:00:14+00:006 July 2022|tax + global mobility|

Transitional period for international teleworking after Covid-19

The Administrative Commission for the coordination of Social Security within the EU has reached an agreement to allow a transition period until 31 December 2022 for frontier workers who work from home. During this transitional period, there will be no change in the applicable social insurance scheme, even if more [...]

2022-07-18T13:57:41+00:0016 June 2022|social security|
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