Income from work in the Netherlands

Released June 9, 2022

A Den Bosch court has recently ruled on the use of a dual tax treaty with the United Kingdom. Activities related to resident in the UK who received income from the Netherlands in 2017.

During that year he stayed in the Netherlands for several months. For the purposes of the Income Tax Act 2001, he is considered a non-resident taxpayer. Income from the Netherlands, pay from work in the Netherlands, AOW benefit and ANW benefit. Under the Income Tax Act 2001, the Netherlands has the power to tax that income.

The tax treaty with the United Kingdom (UK) states that the Netherlands is a taxable country for wages. Worked in the Netherlands and was paid by an employer based in the Netherlands. If the UK levies a tax on wages earned from this employment, the UK must provide double tax relief under the tax contract.

Taxes on AOW and ANW benefits are reserved for the United Kingdom. According to the tax treaty, the Netherlands should only exempt these supplies until they are taxed in the UK. These benefits are taxable only to the extent that they are sent or received in the UK. From the documents submitted by the interested parties, it appeared that the distributions were not taxable in the UK. As a result, the Netherlands does not have to tax these benefits.

In determining the assessment, the analyst assumed the responsibility of contributing to the national insurance plans for the months from May to July 2017. During those months, interested parties stayed in the Netherlands and worked here. In accordance with a European regulation, the State of Employment is authorized to collect contributions if a resident of one member country of the European Union acts in the territory of another member country. According to the Court of Appeal, the inspector has set the premium income exactly in the time-ratio ratio of the maximum premium income because it is less than the shareholder’s global income for 2017.

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