Cap on salary for 30% ruling The proposed budget for 2023 includes a salary limit to the 30% ruling starting 2024. The tax free allowance of 30% will be calculated on the salary only to the extent that it does not exceed the maximum pay for government employees as [...]
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 [...]
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 [...]
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 [...]
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. [...]
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 [...]
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The Netherlands
