In the new Tax Plan, the Dutch government announced that the benefit of the 30% ruling shall apply only up to a maximum salary in accordance with the so-called Balkenende norm”. The maximum salary for this norm amounts to € 223,000 for 2023 and shall probably be more or less…

US citizens traveling to Europe will need to apply for an ETIAS  visa (European Travel Information and Authorization System), a new travel authorization for Europe that will come into effect as of 2021.The  ETIAS visa for US citizens is meant to maintain a high level of international security. To obtain the visa for Europe, US…

EU member states have earned about € 25 billion in the last decade from wealthy individuals who obtained citizenship in a EU country in return for their investment. A report from the EU commission claims that the schemes designed to encourage wealthy individuals to invest in return for residency rights…

As of January 1, 2019 employer must apply the highest tax rate of 52% in the Dutch payroll if the  correct address of their foreign employees is not recorded properly.   Next to the highest wage tax rate, instead of the lower average wage tax rates, the following applies as…

As of January 1, 2019 the duration of the 30% ruling will be reduced to a maximum period of 60 months. For existing 30% rulings there is a transitional rule that should be implemented in the Dutch payroll as follows:  End date of existing 30% ruling                30% applies up…

On October 26, 2018, Dutch State Secretary of Finance has proposed an amendment to the tax bill for 2019 in order to reduce the maximum term of the 30% ruling from 8 to 5 years as of January 1, 2021.   If approved by the Dutch Parliament, the new rule…

As part of the Tax Plan for 2019, the Dutch State Secretary of Finance has submitted a bill to reduce the maximum term of the 30% ruling from 8 to 5 years. If approved by the Dutch Parliament, the new rule regarding the 30% ruling will enter into force as…

Expatriate employees coming to work in the Netherlands under the highly skilled migrants procedure or as holder of a European Blue Card should meet certain salary criteria. For 2018, the salary criteria is set as follows:   Expatriate migrants of 30 years and older, Euro 4,404 gross per month excluding holiday…

As of January 1, 2018, the salary criteria for expatriate employees is set as follows: The annual taxable salary for an employee should be at least Euro 37,296 (2017: EUR 37,000). The taxable salary for an employee with a master degree and who is younger than 30 years, should amount…

A new multilateral instrument (MLI) will change the way we address many of the international tax aspects. “The new instrument will transpose results from the OECD/G20 Base Erosion and Profit Shifting Project into more than 2000 tax treaties worldwide.”. As a measure to prevent multinational corporations tax avoidance through structured…

The Dutch Ministry of Finance announced the following salary criteria for the 30% ruling in 2016:   the minimum taxable salary for an employee as of the age of 30 should amount         to at least Euro 36,889 on annual basis; and the minimum taxable salary for…

Individuals are subject to report a deemed income of 4% on savings and portfolio investments in Box 3. The income reported is subsequently subject to 30% income tax. As of January 1, 2017, it is proposed that the deemed income will no longer be calculated based on a fixed percentage…

If the 30% ruling is granted, it provides for the following benefits: It allows the employer to grant a tax free allowance to the employee, as a compensation for the extra costs due to working in a foreign country. This means that the initial salary is reduced by a maximum…

The Dutch Government has sent a letter to the Parliament regarding the intended tax reform in 2016. The main issues concerning individual income tax are summarized below. Reduction of the tax rates under the second and third income tax brackets (currently 10.85% and 42% respectively) with approximately 2%. Increase of…

On 8 June 2015, the European Commission ordered 15 member states to submit specific tax rulings to assess whether these respect EU state aid regulations.  The member States includes amongst other, Austria, France, Germany, Italy and Spain. This above is based on assessment of information received by the Commission from…

The Dutch Ministry of Finance recently that Dutch taxation of cross border termination payments will be in line with the OECD commentary. Previously taxation was such payments were based on decisions from the Dutch Supreme Court.   The main rules in the OECD commentary regarding the taxation rights of such…

As mentioned in our newsflash of October 2014, EU Member States started the automatic exchange of information on certain income e.g. income from employment, director fees, life insurances, old age pensions and income from immovable property. When filing their income tax returns, taxpayers should make sure to be in compliant…

Each year the tax authorities are focusing on a few special subjects when auditing an Dutch individual income tax return. In this regard, special attention will be paid to the issues listed below upon auditing the 2014 Dutch individual income tax returns,   Deduction of specific health care costs. Pension…

Under certain circumstances individuals moving to the Netherlands may bring their household goods, including their cars to the Netherlands without paying any Dutch import duties. To claim this duty exemption an application must be filed via the removal company using Customs’ AGS declaration system   To be granted an exemption…

Based on article 15 of the OECD Model Convention, the remuneration of a seconded employee is in principle taxed in the country where the work is actually exercised. However, the right of taxation remains with the country of residence if the employee:   is not present in the working state…

As of January 1, 2015 employers are required to pay at least the portion of the salary that equals the statutory minimum wage to the employee’s bank account. The remainder may still be paid in cash but it is no longer  allowed to pay the full salary in cash.

The salary condition as applicable for the 30% ruling will be audited by the Dutch tax authorities through the 2014 annual payroll reporting. Employers are strongly recommend to review the final 2014 payroll of the employees who are granted the 30% ruling, to check whether the salary condition for the…

As of January 1, 2015, the maximum amount that an individual can contribute in their third pillar old age  pension scheme will be reduced.  In order to avoid possible taxation on the total pension accrual, companies need to ensure that their supplementary old age pension plan comply with the new…

The entrance date of the new tax treaty concluded between the Netherlands and Germany is postponed again and will most likely enter into force as of January 1, 2016.   One of the important changes in the new tax treaty is the introduction of a compensation rule for Dutch residents…

To fight tax evasion 51 countries including the Netherlands, signed a multilateral competent authority agreement to automatically exchange information as this is seen as a key aspect in their fight against tax evasion. This agreement specifies the details of what information will be exchanged and when, as set out in the Standard…

The “werkkostenregeling” (work related costs scheme) will be compulsory for each company in the Netherlands. The obligatory final date has been postponed a few times but it is final now. The work related costs scheme replaces the old system of tax free allowances and reimbursements.   Under the new scheme…

During the course of 2015 the current method of the VAR statement will be replaced by a BLG statement. A VAR statement is issued by the tax authorities to provide and provides clarity to the contracting party that the income paid to the contractor is considered self-employed income and can…

As the quality of services by the big four tax and audit firms have still not improved, the Dutch Ministry of Finance Mr. J. Dijsselbloem pledged to get tough on KPMG, E&Y, Deloitte and PwC after a damning report from the AFM (Dutch financial services regulator). The AFM said on…

When filing the Dutch individual income tax return for 2015 going forward, a non-resident taxpayer will no longer be allowed to opt for the Dutch resident taxpayer status due to the Dutch concept of the  qualified non-resident taxpayer scheme.   As of January 1, 2015, an individual is considered a…

As of January 1, 2015, the tax free allowance of the 30% ruling is taken into account calculating the basis for the old age pension accrual. Prior to January 1, 2015, this was only allowed in certain specific cases e.g. assigned employees who remained  participating into the old age pension…

As of January 1, 2015 the maximum basis for the first pillar old age pension accrual  will be decreased and capped to an amount of €100,000. In combination with the adjustment as of January 1, 2014 (pension age set at of 67), the maximum allowed accrual rates per January 1,…

Foreign companies hiring out employees to the Netherlands are deemed to have at least a permanent establishment in the Netherlands for wage tax purposes. As a consequence these companies must register with the Dutch tax authorities obtain a wage tax number setup and maintain a wage or salary administration in…

Based on the so-called 30% ruling, an employer may grant a tax free allowance with a maximum of 30% of the gross salary to certain category of employees working in the Netherlands. One of the conditions to qualify for the 30% ruling is that the employee’s normal place of residence,…

The Dutch Supreme Court recently ruled that the excessive termination tax due by companies on excessive termination payments is not contrary to international law.   A termination payment is considered excessive if an employee’s payment, in the year in which its employment is terminated and in the preceding calendar year,…

The Dutch Ministry of Finance recently published updated guidelines regarding the reimbursement of expenses incurred during business trips abroad, such as meals, lodging and out of pocket expenses. Employers can reimburse expenses incurred for and relating to business trips abroad tax exempt up to the tax free amounts available to…

The State Secretary of Finance recently announced adjusted guidelines in order to determine whether social security contributions paid to foreign social security schemes are taxable (employer contributions) or tax deductible (employee contributions) for Dutch tax purposes. The adjusted guidelines are applicable to employees working in the Netherlands and participating in the…

Recently the Court in The Hague issued their decision in a court cases against the 16% crisis tax. This 16% tax is due by companies for their employee and is calculated on the part of employment income exceeding Euro 150,000. According to the Court, the crisis tax is not in…

An Dutch fiscal number is required for companies to arrange for mandatory Dutch wage taxes and/or Dutch social security contributions for their resident and non-resident employees. Previously non-resident employees could obtain a Dutch fiscal number at the tax office. However, this is no longer possible irrespective whether these employees are…