Dutch Government has announced its intention to limit tax relief on the 30%-ruling.
Netherlands on June 28th, 2022
Under the 30% ruling an employer can provide a tax-free allowance to qualifying employees recruited or seconded from abroad to cover expatriate expenses. The maximum tax-exempt allowance is set at 30% of the employee’s income that is subject to Dutch tax. The Dutch Government intends to introduce a maximum calculation base for the 30% tax free […]
The Netherlands: Dutch Budget 2022 – New Tax brackets and Tax Free Allowances
Netherlands on January 3rd, 2022
Dutch wage tax rates have been updated in the Dutch Budget 2022 as have the tax free limits of the Employment Costs Scheme which allows employer to provide tax free allowances and benefits in kind to employees. New Dutch income tax rates as at 1 January 2022 The income tax and social security rates applicable […]
Netherlands – Change of tax allocation rules for severance payments in cross-border situations
Netherlands on January 3rd, 2022
After 5 February 2022, the right to levy tax on severance payments in cross-border situations will no longer be based on the allocation of taxation rights over the last twelve months of the employment. Instead (in principle), it will be based on the work pattern over the total period of service in cross-border situations, this […]
Netherlands – A new tax exempt working from home allowance
Netherlands on January 3rd, 2022
Since 1 January 2022, employers can provide a tax exempt ‘working from home allowance’ of EUR 2 per working day. The allowance is intended to cover any additional expenses incurred when working at home (heating, coffee/tea etc.). This working from home allowance will not need to be deducted from the employer’s tax-free allowance as part […]
Remote working in Belgium and Germany – extension
Netherlands on January 8th, 2021
The Netherlands has concluded mutual agreements with Belgium and Germany on how to apply the double taxation agreements for cross-border employees under the COVID-19 measures. The mutual agreements which were concluded on 6 April 2020 with Germany and 8 May 2020 with Belgium have been extended until 30 September 2021. Due to the travel restrictions […]
Continuation of the fixed commuting allowance during COVID-19
Netherlands on January 4th, 2021
Employers may grant a tax-exempt fixed commuting allowance to their employees, dependent on i.a. commuting distance, travel frequency and EUR 0.19/km. Because of the current COVID-19 measures, employees preferably work at home as much as possible, which would have a negative impact, in principle, because of the much lower travel frequency. In order to address […]
Dutch large enterprises become eligible for the Fixed Cost Allowance pursuant to approval European Commission
Netherlands on January 4th, 2021
As the lockdown measures are extended, the Dutch government envisages to open the Fixed Costs Allowance (TVL) to large enterprises and increase the subsidy amount significantly. On 16 March 2021, the European Commission approved the envisaged measures. The TVL is a subsidy for companies with a loss of turnover of at least 30%. Companies in […]
Remote working in Belgium and Germany
Netherlands on January 4th, 2021
The Netherlands has concluded mutual agreements with Belgium and Germany on how to apply the double taxation agreements for cross-border employees under the COVID-19 measures. Due to the travel restrictions caused by COVID-19 measures, cross-border employees may face taxation of their employment income in their state of residence because of working at home, where the […]
Pensions – lump sum payment allowed as from 2022
Netherlands on January 2nd, 2021
Contrary to most European countries, accumulated pension capital cannot be paid to an employee in a lump sum under Dutch law. Accumulated pension capital must be paid in lifelong annuities from the retirement date. In order to give employees more freedom on how to use their pension capital, the Dutch Government has now proposed to […]
Is the European Court of Justice opening the door to material employment practice in social security?
Netherlands on January 9th, 2020
On 16 July 2020 The Court of Justice of the European Union ruled that international lorry drivers who work in more than one country are covered by social security regime in the member state in which their employer has its registered office. The Court considered the employer to be the entity which actually 1) Â exercises […]