This post contains some of the up to date (December 2012) expat Q and A’s as discussed by us on Expatica, the discussed issues are categorized:
Q: Next year, it shall be my 5th year here in NL. I have been granted a 30% tax ruling since I came here last 2008. With the new rules, my eligibility shall be checked for next year. By the end of this year (2012), my salary will not meet €35,000 taxable income requirement. Will this affect my eligibility for next year to be able to keep my 30% tax rule? Will I still be able to keep my 30% tax rule for next year?
A: Indeed after the first five years you will have to meet the 2012 rules, amongst which is the salary criterion. There are only very limited exceptions not to meet this criterion, e.g. in case of temporary parental leave. However there may be an option for you to swap part of the current tax free reimbursement, under the ruling, for gross taxable salary. This is because the 30% ruling may also be based on a lowered tax free %, 30% is the maximum. This way your benefit of the ruling will decrease, but could still give a benefit.
Q: How is the yearly salary determined? My gross monthly salary based on contract is 4444 euro, thus more than 50k euro/year.However, I am now working only 4 days a week (have children), therefore I receive only 80% of 4444 euro gross, which makes it just slightly less then 50k euro yearly. Will I still qualify for the 30%ruling? Please can you elaborate on which salary is considered in case people are working part-time?
A: As you know as of 2012 new rules will turn into force regarding the 30% ruling. There are several minimum heights of the salary criterion, depending on your situation. For assumption sake, if you are 30 years or older and do not have a PHD degree, the minimum salary including the 30% reimbursement is indeed EUR 50,000. Please note all taxable income will be of relevance, e.g. your holiday allowance and possibly also bonuses if and when these are well documented beforehand. Please note the height of the minimum salary criterion will be subject to an annual indexation.
The state secretary has stated that a part time salary may, for the salary criterion, not be recalculated to a full time salary. This could mean that you, at the five year check, no longer qualify for the ruling. There will however be an exemption of the minimum salary criterion in case of (temporary) ‘leave’. As examples of leave, maternity leave and parental leave are mentioned. However this exemption is yet to be formulated, so its exact content is not yet known. Please check https://www.government.nl for a further explanation and the conditions of the legal right to parental leave.
It is expected that the state secretary will give a further explanation of the new rules during the coming time. The final version of the new legislation is expected soonest.
Q: So, what if you are hired from abroad, come to the Netherlands with the 30% ruling after 2012, lose your job and are hired by another company from within the Netherlands? Do you lose the 30% ruling because you are hired inside the Netherlands then? Many are only contracts for say, 1 year or something.
A: In your example the 30% ruling may be commenced if the contract with the new employer is signed within 3 months after the last day of your contract with your previous employer. After these three months you will in principle loose your ruling when no new employer has been found. In order to commence the ruling a new request is to be filed and all conditions have to be met, except for the recruitment from abroad. Regarding the new legislation; from recent statements of the State Secretary could be derived that all rulings first applicable before 2012 will be respected up till the five year check. This respectation will also apply if the ruling is commenced with a new employer after 2011. Please note also in that case the three months period criterion remains.
Q: What is the time limit for which one can apply for the 30% ruling. I’m actually employed for a consultancy company since 2009 but I only heard about this benefit recently. Can I still apply for it?
A: If you meet all conditions you may still be eligible for the 30%-ruling. Your earlier stays will however be deducted from the maximum applicable term of eight years. If you changed jobs in the past, not more than three months may have elapsed between the old and the new employment. Best to file a (pro forma) request a.s.a.p. if you feel you meet the criteria.
Q: I arrived in NL in May last year on a holiday work visa and spent most of my time traveling around Europe. In July I got an offer to work for a multinational company. I started work in August and applied for the 30% ruling. Though I met the academic and salary requirements, I was denied the ruling as the job was offered when I was in the NL. I was wondering if there is any way I could still get the ruling? If I change jobs can I get the ruling? E.g. by working outside NL?
A: In 2011 still the old regime of the 30%-ruling was applicable, the conditions were different from the requirements as of 2012. Without further details it is hard for me to give an accurate conclusion on your case. However it seems that one of the main reasons for the denial was, as you state, you were seen as a fiscal resident of the Netherlands at the time you were recruited. You may have a case by pleading you were not a fiscal resident of the Netherlands at the time of recruitment. You may have a case since you were here only on a holiday work visa and were also traveling a lot outside the Netherlands.
You could may be qualify under the new 2012 rules, however the chances are that the tax authorizes will claim you should have qualified under the old rules when you first were recruited in 2011. Changing jobs will not have an effect on the above mentioned. You could indeed consider moving out of the Netherlands and returning at a later moment. However it will be crucial that you actually become a fiscal resident of another country and are actually recruited outside the Netherlands.
Q: I moved to the Netherlands 3 years ago and received the 30% tax ruling. Now I work 4 days per week (parental leave), so I earn less than 50K euro yearly. Will be the 50k requirement reduced to 80% as well or the taxable amount will stay to 35k?
A: It is in principle not allowed to recalculate a part time salary to a full time salary to qualify for the ruling, the state secretary has been fairly clear on that matter. However it has now been taken up in the 30% ruling legislation that this recalculation is allowed in the period parental leave is taken up. The parental leave regulation is taken up in labour law, it is only possible to apply parental leave for a restricted period of time. Please be referred to this article for a further explanation of parental leave : https://www.government.nl/documents-and-publications/leaflets/2011/10/20/q-a-unpaid-leave.html
You in principle have to qualify for the salary criterion during the five year check, may be you could arrange for such a situation that you fall under the parental leave regulation at the moment of this check.
Q: I have had the ruling for more than 60 months (on 1 January 2012). Will the new rules have a consequence on me if I switch jobs? In particular, will in this case the total period of the ruling shrink to 8 years?
A: In the Parliamentary treatment of the new rules as per 2012 it has been explicitly stated that all rights will be honored when a 30% ruling has already passed the five year term before January 1st 2012. Furthermore it has been mentioned that this honoring of the ruling also applies to employees who change their jobs during the term the ruling is applicable. Honoring of the ruling in this respect means that the rules as applicable before 2012 remain into force. As till 2012 the maximum applicable term was ten years, this should remain to be the maximum term when you change employer. Please note that no more than three months should pass between the end of your old and the start of your new employment.
Q: I have just relocated to Amsterdam and have just applied for the 30% ruling. However, I’ve also asked my employer to pay for a Dutch language course for me – they refused on the basis that if they pay for this then I would no longer be eligible for the 30% ruling. Is this really the case?
A: You will not loose the 30%-ruling when your employer pays for this Dutch language course. However what they may have meant is that costs for Dutch language course may in principle not be reimbursed tax free next to the application of the 30% ruling. This is because costs for Dutch language course are seen as so called extraterritorial costs. The 30% ruling offers a fixed reimbursement for deemed extraterritorial costs expats will have when living in the Netherlands. It is allowed for your employer to reimburse the actual extraterritorial costs, when these are higher than 30% of your salary, however than all costs have to be to proven. When applying the 30% ruling no further proof of the actual costs is needed.
Q: My husband, who is Dutch, has been offered a part-time contract in The Netherlands from 1 May. We live in the UK, and have done so since February 2006. My question is, will he be eligible for the 30 percent tax ruling because he is being employed from outside of The Netherlands?
A: It will depend on when your husband last lived in the Netherlands. If he moved from the Netherlands to the UK in 2006 than unfortunately I see no possibilities for your husband to qualify for the 30% ruling. Under the new rules applicable as of the year 2012, in practice Dutch residents should have been out of the Netherlands for a period of 25 years prior to a move to and/or employment in the Netherlands in order to qualify for the ruling (next to certain other criteria). Till the year 2011 the minimum period he should have remained outside the Netherlands was ten years. Please note it is difficult to give you a more exact reply since I do not have all the details, but most likely it will not be possible for your husband to obtain the ruling.
Q: I came to NL in March 2012 from an EU country to work for a company, under a one-year contract with a trial month. At the time I satisfied the conditions for the 30% ruling (distance, salary etc), but my contract was terminated after the trial month without claiming the 30% ruling. If I find another job within 3 months after my contract ended, can I still claim the 30% ruling? Or should the first employer have applied for it already?
A: Yes, it possible to still apply for the ruling. Indeed in principle no more than three months should pass between the end date previous employment and start new employment. The earlier period starting March, as well as possible earlier stays, till the month the ruling is requested for, will be deducted from the maximum eight year term. Please note the ruling will have retroactive effect if requested within four months after the start of your new job. Of course all criteria, which you seem to know, should be met.
Q: I am American working in NL since May ’11, had 30% rule from the start. Now my job is redundant and I agreed with my employer 1) release from my duties as of June 1; 2) contract will end Aug 30, until then I will be paid my salary. My employer will stop 30% rule since June 1, since I am physically not working. 1) Is it a must by law? 2) to keep 30% rule, do I need new job within 3 month from June 1 OR from Aug 30? Or I will have to apply again anyway as my employer stops 30% rule now?
A: In principle, if processed correctly, the employer may apply the ruling on the salary till the end of August. This means you will formally have three months as of the end of August to find another employer in order to commence the ruling. The pre-2012 requirements have to be met in order to qualify for commencement.
Various tax matters
Q: I worked in netherlands for 3 months(June 2012 to Aug 2012) and earned 4500 euros a months(payed 2000 euros tax per month so net pay was 3000 euros).So next year I will be filing tax return on Jan 2013 How much tax return i can expect.
A: Considering the amount on tax you paid during these three months, the tax refund could be considerable. A refund is to be expected because of the applicable tax rebates, the progression in the tax brackets and the way premium social security may be calculated. However to make an exact calculation additional information is required, amongst others with regard to possible other income you had during 2012.
Q: I used to work then I started a company in 201. Now as the company is not in profit I am planning to close it. I give only 15 hours per week. I heard something about self-employed allowance. How can I claim that? If not, then in case I close my company will I get rebate as a non-working spouse? I don’t want to lose the allowance.
A: I presume you meant the year 2011. With self employed allowance you probably refer to the additional tax deductions for self employed. Some of these tax deductions for self employed can only be applied when during the relevant tax year a minimum of 1,225 hours is spent by the self employed on his/her company. Although this hours criterion may be broadly interpreted, in your case with 15 hours per week, this minimum will not be reached. However since your company is not in profit, that will not matter much as it regards additional tax deductions and not an allowance which will be paid out.
If you have a fiscal partner, than you could be eligible for a tax rebate refund. This will depend on the height of your and your fiscal partner’s taxable income. Basically the tax due – after tax rebates – by your fiscal partner can be paid out to you, to a certain maximum, if your taxable income is not high enough to consume all tax rebates you are entitled to.
Q: I left the Netherlands in December 2008 after seven years working at a Dutch University. I have suddenly been presented with a huge tax bill for my pension from those years which I left in the Netherlands. Any suggestions?
A: You say you worked at a Dutch University. This could be considered as being a public law entity. Depending on your situation there are two options. The assessment you mention could be a so called protective tax assessment for which automatically an extension of payment is granted. This assessment will in principle be revoked after five years, after the signing date of the assessment, when certain conditions are met. These conditions are, amongst others, mentioned in article 19 sub 2 of the tax treaty between the USA and the Netherlands:
Article 19. Pensions, annuities, alimony
1. Subject to the provisions of paragraph 2 of Article 20 (Government service), pensions and other
similar remuneration derived and beneficially owned by a resident of one of the States in consideration
of past employment and any annuity shall be taxable only in that State.
2. If, however, an individual deriving remuneration referred to in paragraph 1 was a resident of the
other State at any time during the five–year period preceding the date of payment, the remuneration
may be taxed in the other State if the remuneration is paid in consideration of employment exercised
in the other State and the remuneration is not paid in the fpaid in lieu of the right to receive an annuity.
The other option is that the Dutch tax authorities take the point of view that your pension is taxable in the Netherlands, based upon article 20 of the treaty. However if that is the case you could object by referring to art. 20a sub 2.b. of the treaty:
Article 20. Government service
1. a. Remuneration, other than a pension, paid by one of the States or a political subdivision or a
local authority thereof to an individual in respect of services rendered to that State or
subdivision or authority shall be taxable only in that State.
b. However, such remuneration shall be taxable only in the other State if the services are rendered
in that State and the individual is a resident of that State who:
i. is a national of that State; or
ii. did not become a resident of that State solely for the purpose of rendering the services.
2. a. Any pension paid by, or out of funds created by, one of the States or a political subdivision or a
local authority thereof to an individual in respect of services rendered to that State or subdivision
or authority shall be taxable only in that State.
b. However, such pension shall be taxable only in the other State if the individual is a resident of,
and a national of, that State.
Please note in principle you have six weeks to object to the assessment after the signing date.
Q: In April I received a letter from the Belastingdienst saying I am entitled to a refund on the taxes for 2009. In that year, I worked for 4 months in the NL. Two questions: having only a Sofi number,no BSN and no registration at the Gemeente, how can I know if I paid AOW, Anw or AWBZ? There is nothing on my Jaaropgaaf that answers this question. Also: can I eventually ask them to pay me the amount on the Dutch bank account of my partner? I closed mine when I moved abroad.
A: AOW, Anw and AWBZ are all part of the social security scheme in the Netherlands. In principle if you work and live in the Netherlands you are in principle liable for Dutch social security. This is only different if you have a so called E101 declaration from your country of residence which states that you remain to be secured in that country. If you had no discussion about this issue with your Dutch employer, I doubt whether an exemption was applied by them for social security.
To find out if social security was withheld, which makes a big part of the tax percentage in the first two brackets, you could check the total amount withheld compared to the gross income; please check this link of the Belastingdienst for the tax/ social security rates of the tax year 2009: https://www.belastingdienst.nl/variabel/buitenland/en/payroll_taxes/payroll_taxes-61.html#P2461_94505
If social security indeed was withheld, the amount will be included in the amount on ‘loonheffing’ which is mentioned on your salary slip. To be sure you could check whether based upon your specific situation you were indeed liable for Dutch social security, the Netherlands have closed treaties on this issue with several countries and there is also an EU guideline. It could be difficult to proof without the abovementioned declaration, but if based upon the treaty/guideline you were not liable for Dutch social security you could fill this in on the tax form.
You can use the bank account number of your partner.
Q: I moved to the Netherlands 3 months ago with my wife. She is trying to get a job but at the moment is a trailing spouse. I have two sons studying in a University in UK. I cover all the cost of their studies (fee, accommodation, living expenses, etc). My question is that can I claim a tax rebate/concession.
A: You may not deduct study costs related to your children. However you may, depending on your specific situation, be allowed to deduct a deemed amount on costs. The deduction is calculated for each separate quarter of the year. The conditions for this deduction is that your sons are not entitled to the Dutch study finance allowance or a comparable foreign allowance. Also they have to be younger than 30 years for each quarter you want to deduct. Furthermore your sons are at present not able to pay their own costs and do not have an own sufficient income or equity. Your total contribution should be at least EUR 408 per quarter of the year. The more your contribution is during the quarters of the year, and the more this contribution forms a higher percentage of their total income, the higher the amount is that you may deduct. Please note that as of the tax year 2012 these rules have changed, the maximum age of the qualifying children is lowered to 21 years instead of 30 years. As for the year 2011, the year you entered the Netherlands, it will require some further investigation if you can indeed qualify for the above mentioned deduction.
On a further note, if your sons have a Dutch health insurance they are in principle entitled to the so called zorgtoeslag, an allowance to cover part of the premium. Also if your wife is currently not working, she will be entitled to payment of a tax rebate, she may receive this allowance in installments during the year if a request is thereto filed at the tax authorities.
Q: I studied in the Netherlands and since last year, I started to work here. I heard I could require my income tax return plus 30% ruling as expat, and I can also get the tax of my tuition fee back. However, I have no idea how to make it. Can you please help me out?
A: It may be possible for you to still obtain the 30%-ruling, this will depend on whether you meet all relevant criteria. As you apparently already studied here before being contracted it could be difficult to qualify, but it may be possible depending on the facts.
Your study costs, when exceeding a certain bracket, may indeed be deductible. These costs will include college fees, books, depreciation on computer, etc. Please note this study must be aimed at your (future) career, and not for hobby. You can request a refund or a decree for establishing losses through filing a tax return for the relevant tax year. When you did not have sufficient taxable income in the relevant year of your study costs, the losses may be carried forward to a tax year in which you will have sufficient income to settle these losses.
Q: I am working already 5 years in The Netherlands. Now for private reason i go back to my country which is a EU country. I would like to keep my current job and work from distance from my country. My boss agrees with this. But what the consequences can be for me because officially i will be unregistered from the council here in the Netherlands? is this combination possible to go away and still work for my boss? Where i should pay my taxes?
A: In most countries residents are taxable for their worldwide income. This will mean that in principle you will be effectively taxed in your home country once you start living there, if that country will also become your main point of living. This can only be different if an applicable tax treaty between your home country and the Netherlands decide otherwise, in which case your home country will have to give you a tax exemption for this foreign income.
Based upon most tax treaties normally your home country is allowed to tax income out of dependent personal services, if your employment is physically exercised in your home country. If your employment is physically exercised in the Netherlands for more than 10% of your time, probably your income will be pro rata taxable in the Netherlands. This will however depend on certain conditions. Your employer may non obligatory request an exemption to withhold Dutch wage taxes at the tax authorities. Please note that in case you are working as a teacher, director or for the Dutch (semi) government the taxation will most likely be allocated to the Netherlands.
Depending on the situation and legislation in your home country, your employer may be obligated to become a wage tax withholding entity with regard to your salary. Meaning that your employer has to withhold wage taxes in your home country, possibly by hiring a local accountant. This could bring some additional obligations for your employer. Furthermore under certain conditions your activities in your home country may lead to a permanent establishment for corporate income tax purposes, meaning that the company´s profit allocatable to your activities is taxable in your home country.
Q: I am Dutch and lived in the UK for 27 years. I am now thinking of returning to the Netherlands to live. I receive a widowpension from my late husband and I own several investment properties in the UK. My question is: If I move to the Netherlands do I have to pay dutch income tax. At the moment I pay 20% and the first 8000 pounds are taxfree. WIl I pay a lot more in the Netherlands? My total income is about 25000 pounds a year.
A: When you become a tax resident of the Netherlands you will be taxable here for your worldwide income and equity. Depending on the source of the pension payment, governmental or private insurance, the tax treaty will appoint either the UK or the Netherlands. For private pension insurance this will most likely be the Netherlands. As to the tax burden on the pension, if allocated to the Netherlands, the overall tax burden could be higher than in the UK, but this will partially depend on your age. You are entitled to a tax rebate, the height of the tax rebate will partially depend on your age (but will be around EUR 2,000) . The same age principle applies to the tax rates, at 65 years or older your income tax rate (year 2012) will be 15% (till EUR 19,000) and 24% (from EUR 19,000). Otherwise it will be 33% (till EUR 19,000) and 42% (EUR 19,000). It will be of importance whether the premium for this pension were tax deductible at the time in the UK. In addition to tax also premium healthcare insurance could be due.
As to your investments, please note the following. As a Dutch tax resident you will be taxable for your worldwide held equity in so called ‘box 3’. Equity means possessions minus debt. Possessions in this respect mean e.g. bank accounts, savings, stock, real estate etc. If your equity consists out of real estate located in the UK, you will get a full exemption from Dutch taxes. Equity is taxed in box 3 at 30% tax rate over a 4% deemed interest. In practice this means that you effectively pay 1.2% tax over the value of your equity as at each 1st day (January 1) of each tax year. When you migrate during the year, the 1st of January of the year will be the date you value your possessions but you may deduct the calculation pro rata with the months you were not yet a tax resident of the Netherlands. This is only different for equity which was already taxable in the Netherlands before you moved here, e.g. (certain rights on) real estate located in the Netherlands.
Q: I set my ‘Eenmanszaak’ (translating service) since Jun 2012, and I bought some utilities for bisiness(computer, camera). I want to get 21%BTW refund for those stuff,My question is: 1.What is the criteria for getiting refund? 2. Should I have to have at least 3 incomes(from 1 or 2 customers) during 6 months? 3.What is the revenue I have to gain in order to get my stuff tax refunded?
A: In order determine your VAT (BTW) position, the following issues are important. First of all are you an entrepreneur for VAT purposes? This will be the case if you are active in the economic market. The criterion for VAT entrepreneurship differs from the income tax. For VAT purposes in principle 2 or 3 clients may already lead to entrepreneurship. It will also depend on your intentions, if you aim to take durable part in the economic market in principle you will be seen as an entrepreneur for the VAT. You will have to register with the tax authorities in order to retrieve a VAT number, after registration you will automatically receive a VAT return.
The other issue of importance is whether the activities you perform are subject to VAT. This has been determined by tax law. Translation work is VAT exempt if it regards translation of books, publications, scripts, articles made by journalists or (professional) writers. All other (commercial) work for other entrepreneurs, government agencies and private persons are taxed at 21% VAT (19% till October 1st, 2012). So it will depend on the sort of clients you have whether your activities are (partially) exempt from VAT. Depending on the ratio exempt/non exempt for VAT you may deduct VAT (again 19% till October 1st, 2012) on purchased goods, if used for your company. If this ratio is 50/50 you may deduct 50% of the paid VAT. The other 50% you may deduct in your personal income tax.
On a last note, depending on the amount of your revenue, you may apply the small entrepreneurship ruling (kleine ondernemingsregeling) for the VAT. This means up till a certain amount you may deduct VAT but you do not have to pay VAT (which you invoice your clients) to the tax authorities. The VAT which under this ruling you do not pay to the tax authorities, you will have to add to your income for income tax purposes.
Q: I am considering accpting a job offer which would require me and my wife to move to Amsterdam. we are british nationals curently living and working in Dubai as non resident uk taxpayers. If I was to earn a gross salary of 136,000 euros in holland,how much tax would I have to pay? All I am after is a ball park figure for my net salary
A: The amount on income tax/premium due will depend on certain situations. For example will you be eligible for the 30% ruling? This could well be the case. Also will the amount on salary include holiday allowance and/or other taxable salary (in kind). Based upon the assumption that € 136,000 would be your taxable income than based upon the 2012 legislation your net income could be around € 74,000. Please note your wife could be entitled to a refund payment as a non working spouce (if applicable).
If you decide to come to the Netherlands during the year, please be sure to file a tax return at the end of that first year in any case. Due to the way employers withhold wage tax/ premium social security, you may well be entitled to an interesting tax refund at the end of the year. Also be sure to inform yourself regarding the 30% rule, in your case your net salary – with the 30% rule – could increase to a total of appr. € 94,000. This ruling also offers additional tax benefits.
Q: I lived and worked for 10 years in Amsterdam from 2001 to 2010. Then I went to the US. I am now moving back to Amsterdam, but I will still work in America until April 2013. I registered end of April 2012 but will not earn any money here. how many days do I need to be in the Netherlands each year if I am registered and when do I need to fill in a tax form (even if I am not working)? Is there anything I need to do or avoid so I don’t get problems with the authorities?
A: Tax residency is based upon the location where your main point of economic/social living is located, e.g. where does your partner/family live, where you spend your leisure time and whether you have a Dutch telephone registration/paper/sport club member, etc . It will therefore depend on the relevant facts whether you can be seen as a Dutch tax resident; enrollment in a Dutch municipality on its own will not determinate your tax residency. Although enrollment in the Netherlands will be a practical sign for the tax office that you do live in the Netherlands and you are taxable here for your worldwide income, it can be up to you to proof otherwise.
If, based upon these criteria, you are liable for taxation in the Netherlands than it will depend on the tax treaty between Netherlands – USA whether Netherlands will have to grand a tax exemption for US source income. It will be up to you, as a tax resident of the Netherlands, to determine where your income is taxable based upon the treaty. I do not have sufficient details of your income to give an exact indication. If your salary in full is attributed to the USA, than you could still be taxable in the Netherlands if your worldwide held equity exceeds appr. EUR 21,000. If you receive a tax return form from the tax office than you are obligated to fill it in and file it. Otherwise you only have to request to receive a tax return form if effectively you have to pay tax in the Netherlands.
Q: I’m planning to change my job in the Netherlands and the prospective employer doesn’t have a pension scheme. My question is how can I build pension in this case? As far as I know the 2nd pillar of the Dutch pension can only be entered if the company has a collective pension scheme. So if it’s not available I only can join the 3rd pillar and build private pension. Is this correct? Will the prospective employer be obliged to pay contribution?
A: I am not a labor law expert but as I understand in principle there is no obligation for employers in the Netherlands to grant a pension scheme to their employees. This unless in the possible applicable ‘CAO’ is agreed otherwise or when a pension scheme is mentioned in your labor agreement.
When you are liable for Dutch social premiums, you will be entitled to AOW, which is the Dutch state pension. But only over the years you are insured for the social security in the Netherlands. Furthermore you can build up a pension at a professional pension insurer. Up till certain amounts, and under certain conditions, premium pension is deductible from your taxable income. This deduction is to be made in your personal income tax return.
Q: My husband who has been a Dutch resident tax payer since 2003 is going to leave NL at the end of this month and start employment in the UAE (tax free) Whilst myself and the children will remain in NL in our house where the mortgage is in both our names (I am also a Dutch tax payer). Will he be expected to pay tax on his UAE earnings in NL and will we still receive full tax relief on the mortgages?
A: If your husband becomes a tax resident of the UAE, meaning his main point of social/economic living is located in the UAE, than he will not be taxable in the Netherlands. Seeing that his family, you and your children, remain in the Netherlands it will depend on various other facts whether he will be seen as a tax resident of the Netherlands. However even if he remains a tax resident of the Netherlands, than depending on the facts, the Netherlands will probably have to give a tax exemption for his UAE income based upon the relevant tax treaty.
As to the refund of the mortgage interest deduction, if he is the sole provider – tax payer – than the deduction can only be effectuated when 1. The house will be seen as his main point of living and 2. When he pays taxes in the Netherlands. If you also have a taxable income in the Netherlands than, depending on the facts, you will be able to deduct the interest in full. The above should however be checked carefully.
Q: I am having Iranian passport and UAE residence for 12 years (renewable every 3 years), I am an 7 years experienced Electronic Engineer. From November 2011, I was hired by a Dutch company (BV Company) as an Business Development Manager for Middle East. But since I am taking care of middle east, I work in Dubai and company transfer my salary to my personal Dubai account as salary. 1)Should I pay tax in my case to Dutch Government? 2)Can I apply for work residence with paying my tax?
A: Please note this can be a complex question depending on all facts involved as certain exceptions could be applicable. However I will try to make a first impression of your possible tax status. The question where you are taxable depends on the applicable double taxation treaty. Since you are living in the UAE and working for a Dutch company, in principle of importance is the tax treaty between the Netherlands and the UAE. If your employment is fully (psychically) performed in UAE, and not in the Netherlands, than you are not liable for Dutch taxation/premium.
The relevant tax treaty can be found here: https://wetten.overheid.nl/BWBV0003163/geldigheidsdatum_10-07-2012
With regard to the permit question, it will be best to contact one of the migration law experts on this issue. However my feeling is that just by paying tax you can not get a work permit.