Due to measures taken as a result of COVID-19, many employees worked from home in 2020. If employees live in a country other than where they normally work, this means that the employees will have to pay more tax in their country of residence. This may be different if the country of residence and the country of employment have made specific agreements because of COVID-19. The Netherlands has only made such agreements with Germany and Belgium.
If the employer has withheld wage tax as if the employees were working at the usual location, there is a right to a tax refund in the “normal” country of employment.
To prevent and limit cash flow problems, it is advisable to submit the income tax return in the “normal” country of employment swiftly and delay filing of the income tax return in the country of residence.
However, any tax interest in the country of residence must be taken into account.
