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 [...]
Last Friday, the cabinet in its Spring Notice (Voorjaarsnota) announced that it intends to change the 30% ruling facility. This is what we know from the Voorjaarsnota: The Dutch government proposes that the maximum 30% tax free allowance will be capped. This will be done by limiting the basis of [...]
As a result of the decreasing restrictions related to COVID-19, governments have extended the special measures for cross-border workers for the last time. The temporary agreements with Belgium and Germany have been extended to 30 June 2022. Based on these agreements, a resident of a country, who normally works in [...]
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