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Oil & Gas industry offshore and payroll

What are the tax implications for employees working in the oil & gas industry on an offshore rig that is within the Dutch legal territory. Basically the same rules as any other employee working in the Netherlands. But the employees in this industry most of the time live in a different country then the country where the work. So how does that work tax wise?

If you are an employee of an oil & gas company, then you are socially insured in the Netherlands, as the place of work is the Netherlands, unless you can provide a A1 statement from your home country. The employee social premiums are high, as this is a hazardous industry. In your home country you need to report your world wide income, also the Dutch income and a double taxation relief is provided in your home country.

Most situations are the situation where the persons are not hired as employees but as contractor. Unfortunately the Dutch tax office does not see a difference here. You are both paid, for the job on the rig, under instructions of the client/employer. That makes the contractor a deemed employee. This is a problem for the client, not the contractor, from a tax perspective.

If you are a contractor and you would like to work on a Dutch oil rig and comply with the rules, then we will be able to assist you and walk you step by step through the process. Important is that you already have a limited liability company abroad.

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