Start a remote work place or start employment with a foreign employer is something we see happen more and more. How is a remote work place taxed?
A remote work place
Internet makes the world smaller and we see that foreign employer like to keep employed their employee that moved to the Netherlands. The move to the Netherlands is often initiated by the partner. The partner is offered a position in the Netherlands, or wants to return to the Netherlands or has another reason to move.
Can you have a remote work place?
Yes you can.
The rule is that you pay tax in the country where the work is actually being done. That implies you need to pay Dutch wage tax over your salary from the foreign employer. The foreign employer therefore needs to set up a Dutch payroll. In order to be able to set up a Dutch payroll a Dutch registration needs to be made.
The moment the Dutch registration is made, the foreign employer has become a Dutch employer for the remote work place. That implies the employee in the Netherlands is subject to Dutch social premiums. In case the employee prefers to remain socially insured under the foreign employer country system, this needs to be applied for via the proper institutes.
Will the foreign employer become exposed to taxation in the Netherlands?
It depends on how the employer will be registered, but if exposure is not desired, then the employer can be registered at a very low exposed manner. Low implies only exposed for the tax to pay over the salary of the remote employee.
Is a remote work place different from a regular Dutch employment?
Not at all.
- Dutch labour law applies, even if the employment contract is based on foreign rules and regulations.
- Dutch tax is to be paid.
- Dutch incentives such as the so called 30% ruling can be applied for.
If the employee purchases a house in the Netherlands, the mortgage inters can be deducted. The remote worker is like a domestic Dutch employee.
Tax-is-exciting – set up
We are very much excited to assist you to persuade, if necessary, to have your foreign employer comply with the Dutch rules and regulations. At the same time we understand the foreign employer being hesitant to enter a country, especially the Netherlands, with its own rules of taxation.
Hence we offer a low exposed tax registration for the foreign employer, where the foreign employer does not need to be afraid to become exposed to any other tax than the tax related to the employment of the remote worker. This is possible when certain conditions are being met, and we will be glad to share these with you the moment you inquire about a set up.
At the same time we need to inform the foreign employer that Dutch rules and regulations with respect to labour law apply, hence we suggest to set up a Dutch contract for the remote worker. Or at least have contact with a Dutch labour lawyer.
Are you as employee interested, contact us and we provide you with information you can show your foreign employer. This will help making the decision.
Are you the foreign employer, contact us and we can set up quickly the nonresident employer payroll for you.