Pilot working abroad living in the Netherlands
A Dutch tax resident pilot worked for a British airline company in the United Kingdom. This British Airline company has its main office in the United Kingdom. Obviously the Dutch tax resident preferred to be taxed in the UK, as the UK tax rates are lower. Housing is more expensive in the UK, but that he solved by living in the Netherlands. Being a pilot, this are the options at hand.
Tax office went to court and won
The Dutch tax office was no amused as article 15 sub 3 of the French Dutch clearly states that if you are a pilot and a Dutch tax resident, that the income you generate from your employment is taxed in the Netherlands. The case went to court and the court decided that the tax office was correct. This pilot is taxed in the Netherlands for the income from the British Airline company.
Does this also work the other way around?
Yes it does, a pilot can be taxed abroad. If you are a pilot working for a Dutch Airline company with its main office in the Netherlands, you can use the article mentioned in the Dutch tax treaty to your advantage. The number of the article can differ per tax treaty, it is sub 3 of the non independent labour article. If the tax treaty with the country of your desire contains this article, you can make a switch. An application needs to be made with the Dutch tax office and then you can have your Dutch income taxed elsewhere.
Malta is an example where we know some pilots live, but also the United Kingdom can be a better solution compared to the Netherlands. Pilots have the advantage that their commute travel is sponsored by their employer, so they simply hop on a plane and arrive at their work.
We will be able to apply with the Dutch tax office for the wage tax no longer to be collected in the Netherlands, but that this is shifted to the other country with whom the Netherlands has a tax treaty containing this article. This is done at a fixed fee by one of our tax advisors.