Any foreign tax expert here to help

[tigerinopen]

Hi,

I need some advice on whether my limited company and/or I will be liable for Dutch taxes if I work there on a 6 months contract.
I will be having my family in UK for the whole duration.
I am currently a UK tax resident and maintain my home here.
Will be in Netherlands from Monday - Friday (sometimes may be up to Thursday, not sure yet).
Will be invoicing through UK limited and paying myself through it.

Regards,

[northernladuk]

Isn't this the same question as here?

http://forums.contractoruk.com/busin...-recently.html

[tigerinopen]

Isn't this the same question as here?

http://forums.contractoruk.com/busin...-recently.html

Yes it is, but I am specifically looking for a foreign tax specialist in this forum. Anything wrong?

[ASB]

From what you describe I expect you will continue to be UK resident; irrespective of how much time you do or do not spend in the UK.

Some details on the relevant new residence test:- http://www.wfw.com/Publications/Publication1326/$File/WFW-StatutoryResidenceTest-Briefing-Sept-2013.pdf

So, the next question is whether or not you will become NL tax resident. It is possible to be resident in more than 1 jurisdiction simultaneously.

The NL authorities are pretty clear that they expect to receive a slice of the cake.

Income tax | Taxation | Government.nl

Whether or not you become a non resident dutch taxpayer will depend upon your individual circumstances (but I rather imagine you will).

The DTA should provide some reliefs, limiting the tax paid to the higher of the two. But there could be issues dependant upon how you pay yourself and the exact vagaries of the treaty.

So yes, you do need specialist advice; and this isn't.

Having done that the next question you need to consider is where is your company resident. This will affect its status. Companies have their own tax residency too.

Personally I had always just billed through my UK limited and not told anybody or registered anywhere. I did have some fairly long conversations with the French authorities about my status when I came to their attention but didn't get any great problems - due to my specific circumstances being approrpiate. I also had issues with the Portuguese because of their withholding taxes on corporate income, but eventually managed to claim it back against uk CT.

[petergriffin]

According to the Belastingdienst if you stay more than 4 months within six months than you're fiscally resident in NL and are expected to pay both income and corporate tax there.

Tax harmonisation doesn't exist at all in the EU. However the Belastingdients is sh.t and won't even notice.

[tigerinopen]

According to the Belastingdienst if you stay more than 4 months within six months than you're fiscally resident in NL and are expected to pay both income and corporate tax there.

Tax harmonisation doesn't exist at all in the EU. However the Belastingdients is sh.t and won't even notice.

So if someone is out of the country within in 4 months, is fine with them?

[stek]

So if someone is out of the country within in 4 months, is fine with them?

Seriously, forget it mate, this is a train wreck waiting to happen.

[petergriffin]

I assume most of the replies here have come from somebody who has either never been worked abroad or only for relatively short periods.

In the continent (I can vouch for Netherlands, Belgium, Germany and Italy) you are considered tax resident in the country if you stay for a certain number of days, usually 183 (in Italy it used to be 3 months), regardless of whether you are a contractor, paye, ltd or else. You pay tax where money is generated, not where it is paid. So if you labour is in Holland, you should pay tax there.

So you have usually two potentially conflicting interpretations of tax status. Been there before. How do you resolve that? In my opinion choose whichever is more convenient to you. Should an investigation arise, you cannot be taxed twice in two EU countries.

If you speak at least some basic Dutch, you can speak to the folks at the Juridisch Loket (you can web chat with them too). I say only if you speak Dutch, because when I speak English with them I've usually received substandard advice.

[SueEllen]

Tigerinopen the agency may not allow you to use your limited company so I would check that first.

[Eirikur]

The Dutch tax authorities have a website in english:
You are coming to work in the Netherlands
There might be some hints and tips on there

I was a Dutch citizen have worked there for 20 years, they tax the sh*t out of you, at times (depending on the government) 50% income tax 21%VAT, most expensive petrol in Europe, special tax on cars, home owners tax, inheritance tax, sewer tax and the list goes on and on