Split payrollHave Broadstreet inform you about the split payroll and how to apply

When employing an expat at your company, make sure you are known with the differences in tax systems with your employees previous country of employment, as there are usually differences in tax systems. Most countries apply a progressive tax rate and some might have a flat tax rate. In the Netherlands this is organized by tax brackets.

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What does the split payroll mean?

When an employee is being employed by two employers in two different countries, the employee is eligible to benefit from lower tax rates and tax free amounts in each country. This also applies to being employed by one employer, but getting paid in two countries.

However, tax departments in various countries are aware of this possibility for employees and are not very willing to extend this benefit. Both countries want to benefit from the employees employment and will therefore make this application hard. However, split payroll will often only be applied in a genuine split payroll situation, which entails that the employee must physically work a few days or weeks out of the month in both countries.

Social premiums

The rule regarding social premiums is that you fall under the social security system in the country that your employer is registered. You can opt to fall under the social security system of this other country, instead of the country of residence of your employer. This is achieved by the application of a so called A1 or E101 statement.
Ask Broadstreet for more advice on what works best for you and what your options are.

Have Broadstreet inform you about split payroll

Our tax advisors are happy to inform both emloyees and employers about the benefits and application for split payroll. Get in contact with Broadstreet though our contact form below.

How can we help you?

Robert Bosma
Tax Advisor

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