Broadstreet - Individual - 183 days and tax liability - Meaning of “employer” in international tax

MEANING OF ”EMPLOYER” IN INTERNATIONAL TAX

The “employer” in international tax situations is the “actual employer”; the person or body who carries the relative risks and responsibilities to the work concerned. So, the formal contract is not decisive when determining on who the employer is. The Dutch court decisions seem to indicate that there must be a direct link to the work done and the cost borne (through a cross charge of salary costs) by the employer.

Other items when working internationally 

Please note that all of the above considerations are regarding income taxes (and payroll tax) only. Your social security position is governed by a different set of tax treaties, or by the EU regulations with regard to social security. It could be that a social security obligation is triggered, where still there is no income tax due.  Your work permit is a different topic altogether. In case you need one (being a non-EU citizen), there is usually only an exemption for short business trips.

Split Payrolling

Referring to the text above regarding the 183-day rule and other rules triggering the right to levy tax by the work country, it is sometimes beneficial to create taxation in two or more countries to lower the total income tax paid on gross salary. 

Split payroll will often only be accepted in case of 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, and that, economically, he is working for entities in both countries.

A salary split may lead to a lower overall income tax paid if the country of residence uses an exemption method rather than a credit (of foreign tax paid) method.

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Daniel Sokolov
Daniel Sokolov
14:41 06 Dec 18
Thank you Broadstreet!!!first I have to say that my knowledge in taxes is 0%.I'm checked a lot before I find a Broadstreet team and I'm really glad.they are professional helpful and helped me step by step with everything what I ask for.Thanks again to everyone
Dehlia Kruger
Dehlia Kruger
14:08 01 Sep 18
We are extremely happy and satisfied with the service we received from Broadstreet, Elisabeth Bouwer in particular. Financial information was accurate to the cent, and every promise given was kept. Highly recommended!
Susie Breuer
Susie Breuer
15:33 30 Aug 18
I have used Broadstreet for around 10 years for tax purposes within Holland. I found them knowledgable, responsive and very professional. I would highly recommend them as an expat tax service.
Benedict Carey
Benedict Carey
13:43 06 Nov 17
Having been bounced around a few tax advisors and almost got my self in hot water by being told the wrong thing, I got a recommendation from another person who had a similar business structure to me. The Broadstreet advisor was efficient and thorough and provided a comprehensive and understandable summary of how to deal with my situation. Relocating between regimes with complex tax laws is never going to be straightforward, at least these guys do put the effort in ... beware of others who will make a suggestion and then disappear when it goes haywire!
marco lirio diaz
marco lirio diaz
09:41 24 Jun 17
Great services,thorough and real professionals. As an expat I highly recommend Broadstreet. I had some issues with my tax and they manage to solved the problem avoiding a penalty fee. If you don't want to worry about the complex Dutch Tax, I recommend to leave it on their hands to be sort it for you.
See All Reviews
Daniel Sokolov
Daniel Sokolov
14:41 06 Dec 18
Thank you Broadstreet!!!first I have to say that my knowledge in taxes is 0%.I'm checked a lot before I find a Broadstreet team and I'm really glad.they are professional helpful and helped me step by step with everything what I ask for.Thanks again to everyone
Dehlia Kruger
Dehlia Kruger
14:08 01 Sep 18
We are extremely happy and satisfied with the service we received from Broadstreet, Elisabeth Bouwer in particular. Financial information was accurate to the cent, and every promise given was kept. Highly recommended!
Susie Breuer
Susie Breuer
15:33 30 Aug 18
I have used Broadstreet for around 10 years for tax purposes within Holland. I found them knowledgable, responsive and very professional. I would highly recommend them as an expat tax service.
Benedict Carey
Benedict Carey
13:43 06 Nov 17
Having been bounced around a few tax advisors and almost got my self in hot water by being told the wrong thing, I got a recommendation from another person who had a similar business structure to me. The Broadstreet advisor was efficient and thorough and provided a comprehensive and understandable summary of how to deal with my situation. Relocating between regimes with complex tax laws is never going to be straightforward, at least these guys do put the effort in ... beware of others who will make a suggestion and then disappear when it goes haywire!
marco lirio diaz
marco lirio diaz
09:41 24 Jun 17
Great services,thorough and real professionals. As an expat I highly recommend Broadstreet. I had some issues with my tax and they manage to solved the problem avoiding a penalty fee. If you don't want to worry about the complex Dutch Tax, I recommend to leave it on their hands to be sort it for you.
See All Reviews