Double taxation relief

If, as a resident, your worldwide income is taxable in the Netherlands it may also be (partly) subject to taxation elsewhere, resulting in double taxation. In most of these cases double taxation relief is available through a tax credit which exempts you from paying tax in the Netherlands on this same income.

In some situations however, income could be taxable in two countries or not taxable at all. If your salary is earned in different countries a salary split often offers possibilities to reduce tax. To define in which country a salary is taxable the 183 days rule is applied in most countries. Contact us to see if this applies to you too.

US citizens

Special regulations apply to US citizens, who remain taxable in the USA, making available further tax planning opportunities. International organisations often have special policies on taxation. This could for example result in exemption of taxation on wages and pensions.

As the rules and forms of double taxation regulations can be different from one country to the next, your particular situation will have to be looked into carefully and the best tax planning structure will have to be worked out. Please write to us and present us with your particular (double taxation) situation and we will search out the most advantageous solution.

Example situations of double taxation relief

You are a South African citizen and intend to emigrate to the Netherlands. From 2022 you will also receive a company pension in the UK, which is partly earned by working abroad and tax-free. However, you are paying income tax on the other part of my pension from the company. You are planning to move to the Netherlands, where you already have a property and will be a tax resident. You want to know what your tax obligations in NL are, given that you already pay the tax in the UK.

Have you submitted tax returns in NL since you have your NL property? If you move to NL you will become taxable for your worldwide income and wealth. If the UK is entitled to tax you then NL will grant a double taxation deduction. This is something we will need to look into. Generally, tax is levied based on the treaties in the country of residence. To give you an idea of the tax consequences we would need an overview of your total annual income as well as your worldwide wealth.

You have recently moved to NL as an ex-pat. You are employed in NL and at the same time employed by the same employer’s headquarter in South Africa. You will be receiving a Dutch salary and also a salary from SA. Since you will be staying in NL for over 183 days you are wondering if your SA salary is taxable in NL. You would like to understand better the tax implication of your SA income.

Your question is relevant; the point is really: where is your center of life? Do you live in NL or do you live in SA? Where are you registered? If your center of life is in NL you need to declare your worldwide income. The 183-day rule is only applicable if you don’t live in NL. Where do you work for your SA income? If you don’t physically work in SA it is questionable why not all income comes via the NL pay roll.

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As an expat and business owner, my income taxes can get pretty complicated. But thanks to the folks at J.C. Suurmond & zn., I don’t have to worry about getting things wrong or forgetting obscure tax rules. It’s great to feel like I have someone on my side dealing with the Dutch tax authorities. They’ve handled my taxes for years, and I hope they will for years to come. Thanks 🙏🏼”

– Brian Pagán-

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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. Professional and prompt responses, can certainly recommend!”

– Roelof Smit –

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“They are very helpful and responsive in the times of need. Good and clear communication of right information.”

– Mishanthini Sivasamy –

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Who are Suurmond Tax Consultants

Since 1986 expat and business tax advice in relation to the Netherlands is one of our areas if expertise we provide to our individual and/ or business clients.

In addition, we can also assist in a variety of other cross-border situations. We will ensure you are compliant as well and that you pay no more tax than needed. Examples include advising clients as to starting a business in The Netherlands, accounting, property tax, and amnesty ruling. We file all types of  tax returns and specialise for example in the 30% ruling and 183-days rule consequences. The value we can add with our fiscal advice, is a key focus point to us. Also, what should not be overlooked, is the fact that a correct tax return will prevent future issues and penalties. This is essential when moving to a new country, or when setting up a business in a new country. 

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Contact

J.C. Suurmond & zn. Tax Consultants
Zwarte Zee 100
3144 DE Maassluis
T: +31 (0)10-3033701
E: taxadvice@jcsuurmond.nl

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General information

CoC register: 27224918
VAT: NL 8016.36.668.B.01
Tax consultant number: 330826

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