Suurmond Tax Consultants
183 day rule Netherlands
Do you work abroad for part of the year while living in the Netherlands? The 183-day rule prevents you from paying tax on your salary in two countries and determines in which country your salary should be taxed. Perhaps you are partially living in The Netherlands and working and living abroad. You would like to know where your income will be taxed, in order to prevent and/or anticipate issues with double taxation.
183 day rule Netherlands
Most tax treaties with other countries stipulate that the country of employment may levy on the salary. However, part of these tax treaties is the 183-day rule. If applicable, the country of residence may levy tax. This applies if 3 conditions are met:
- the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned; and
- the remuneration/ compensation is paid by, or on behalf of, an employer who is not a resident of the other State; and
- the remuneration/ compensation is not borne by a permanent establishment which the employer has in the other State.
If this is the case, the salary is not taxable in the state of employment until more than 183 days have been spent there. If not, the entire salary is taxed in the country of residence.
Often the article in the tax treaty that includes the 183-day rule is misunderstood or misapplied. Read more about the 183-day rule on the Belastingdienst website.
When is it recommendable to hire an international tax advisor?
- If you have been working in the Netherlands for 9 months for a foreign employer
- If you will be working abroad e.g. 14 days per 3 weeks but living and staying 1 week in the Netherlands
- If you will work less than 183 days in The Netherlands for you new Dutch employer
- If your job involves frequent travelling to other countries worldwide and you want to prevent double taxation.
In the situations mentioned aboved it is wise to let an international tax advisor have a look at your situation. We can advise you on the possibilities according to the Dutch and treaty tax rules and look after your tax returns. For advice regarding the national tax system of another country, a local advisor will have to be employed, who knows all the ins and outs of this. We are in possession of a vast, international network of advisors.
How can we help you?
Suurmond Tax-Consultants has been advising expats and individuals for over 35 years. After contacting us it will become clear whether we are the right party to help you.
In a contact form or an e-mail you can explain your situation and ask us any questions you may have. Your situations will be looked at by one of our advisors. On the basis of this, the tax advisor will come back to you with a fee proposal.
If you agree, then the advisor will look at the different aspects which apply to your situation and which elements are important to work on. Subsequently a proposal is made based on your circumstances on which you need advice and guidance.
We don’t work with a standard rate as every situation is unique. We are also dependent on information and details from your side as well. In addition, how your case will proceed depends on the response of the tax inspector to our point of view.
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Word from the specialist
The importance of hiring an international tax advisor
Hans Suurmond
— founder
If you are (partially) living and/or working in the Netherlands, you will want to know for certain that what you are doing is done correctly, as you must be compliant. The Tax Office can impose high penalties if your affairs aren’t in order and correctly presented.
At our office you can be certain that you will be supported by experienced advisors and who will provide you with relevant tax advice. Depending on your situation double taxation deduction will be requested.
You will know in which country you are to submit a tax return and where for example your social security contributions and health insurance are due. In the most diverse circumstances we are committed to providing complete tax advice.
View the 3 conditions on the Tax Office website, which ensure the 183-day rule applies in your situation.
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“Work in the US, through secondment by a Dutch research institute. Sander was able to advise me on avoiding double taxation and other tricky questions, and help with filing taxes in NL during the last two tax seasons.”
Roelof Smit · Client review
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