News - Netherlands

Netherlands - October 2013

Netherlands - Foreign workers may become liable to paying Dutch car tax

New legislation has been announced as of 1 January 2014 which will mean that more individuals driving a car with a foreign licence plate will have to pay Dutch car tax (MRB).

Dutch car tax is payable by residents making use of the Dutch road network. Foreign nationals temporarily living in the Netherlands, e.g. for work, may also have to pay the tax. If a personís presence in the Netherlands exceeds four months out of six, he is required to register with the local municipality (GBA). As a consequence of such registration, the foreign car has to be registered (such that he has to acquire a Dutch licence plate) and therefore Dutch car tax is due.

In the case of Dutch non-residents who are registered with the GBA or are required to do so, it will be assumed that they are tax resident in the Netherlands and the onus is on them to prove otherwise.

When a person registers a car, this gives rise to a liability to a registration tax (BPM) unless the individual is not resident in the Netherlands for tax purposes.

When stopped on Dutch roads by the Dutch authorities, non-residents may be faced with an investigation of their circumstances in view of the possible registration requirements and its consequences as explained above.

For further information or to discuss the consequences of the above, please contact Kees Bouwmeester on +31 20 578 57 54 at Loyens& Loeff Amsterdam or Rina Driece, on +31 10 224 6 424 at Loyens & Loeff Rotterdam - www.loyensloeff.com

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