TaxAble

experts in tax

  • Business Tax
    • Type of business taxes
      • Income tax
        • Corporate income tax rates 2019
        • Corporate income tax rates 2020
        • Corporate income tax rates 2021
      • Wage tax / premiums
      • Value Added Tax (VAT)
      • Dividend withholding tax
      • More business taxes
    • Tax planning
    • Compliance services
    • Tax calculator
  • Personal Tax
    • Personal income tax rates
      • Personal income tax rates 2021
      • Personal income tax rates 2020
      • Personal income tax rates 2019
    • Type of personal taxes
      • Personal income tax
      • Inheritance and Gift tax
    • Personal income tax return
    • 30% ruling
    • Expat tax
  • One Stop Shop
    • Setting up a Dutch company
    • Tax compliance & Accountancy services
    • Partners & Network
  • News
    • News on Business Tax
    • News on expat tax
    • News on personal tax
    • News on the 30% ruling
    • Other tax news
  • About Us
    • Testimonials
    • Background
    • Associations
    • Terms & Conditions TaxAble
  • Contact
  • Nederlands
  • English
You are here: Home / All Articles / News on the 30% ruling / Non domiciliation and tax exempt salary split United Kingdom – The Netherlands

Non domiciliation and tax exempt salary split United Kingdom – The Netherlands

May 11, 2015 by Jan-Hein

Under the United Kingdom (UK) tax laws a difference in fiscal treatment of individuals is made between being domiciled and non domiciled. In short domicileds are residents who have their roots in the UK, or have chosen to become domiciled. Non domicileds are e.g. expats with temporary stays or with permanent stay without the aim to become domiciled. Being domiciled is more than just being a tax resident of the UK. For non domicileds the tax regime can be beneficial as foreign earnings can be kept outside of the UK tax scope as long as these foreign earnings are not brought to the UK. Foreign earnings would be brought to the UK e.g. when put on a UK bank account.

The tax benefit for non domicileds who have foreign (e.g. Dutch) earnings could lie in the UK progressive rate not being applicable on Dutch income, also there would be no tax on foreign bank accounts/ interest there upon.

If the income earned whilst living in the UK and working in the Netherlands (NL), would be taxed in NL whilst being insured in the UK, there could be a tax benefit of appr. 10,000 EURO if a person earns appr. 33,000 EURO in NL. This is because of the lower two tax brackets in comparison to 40% tax in the UK. This should be achieved without much effort.

An even more interesting tax benefit would be that the work under UK contract is partially not performed in the UK, but in NL, without this leading to taxation in NL. The tax treaty NL/UK allocates which country may levy tax. Even if you work outside the UK, still under conditions (salary not paid by NL company, not under Dutch contract, less than 183 days in NL) the UK is allowed to levy taxes. The UK however applies the Overseas Workday Relief, which may lead to a full tax exemption of this foreign income. In cooperation with a well established local UK tax specialist we can optimize the tax position of non domicileds with Dutch income.

Please feel free to contact us for further information on this subject.

Want to know what we can offer?

Drop us a line

Filed Under: News on Business Tax, News on expat tax, News on personal tax, News on the 30% ruling

  • Please type in letters
  • This field is for validation purposes and should be left unchanged.

Recent posts

  • Changes in Dutch tax 2024 for companies and individuals
  • Article 23 VAT permit for a cash flow advantage with import
  • Developments in the Excessive Borrowing from your own BV
  • Deposit annual accounts with Dutch Chamber of Commerce
  • Make use of the One Stop Shop to avoid having to register VAT per country

Search

News categories

  • All Articles
    • News on Business Tax
    • News on expat tax
    • News on personal tax
    • News on the 30% ruling
    • Other tax news

Copyright © 2025 TaxAble :: experts in tax

© Taxable 2017 –2025 - Privacy statement

  • Nederlands
  • English