Working at home for an employer abroad, is that possible?
Maybe this is a boring question for you, but a question like this gets Tax is Exciting BV – Orange Tax pretty excited. Why? They see plenty of opportunities.
Tax basics concerning employment
Every nation in the world has its own tax system. The tax system that applies to you when you work from your home in the Netherlands is the Dutch tax system. The rule is that employment is subject to tax in the country where the work is actually done.
Social security premiums are due in the country where the employer is registered. If your foreign employer is registered in the Netherlands for your employment from your home, your employer has become Dutch. Hence Dutch social insurance premiums apply to you. This means that you are insured for Dutch unemployment, disability and health care.
Taxed in the Netherlands
Based on the above explanation your income from your foreign employer is taxed in the Netherlands. You are taxed like any other employee working in the Netherlands for a Dutch employer.
Can you use the 30% ruling?
Yes, you can. As you are treated identical to Dutch employees, you have the same rights and obligations as Dutch employees. If you meet the requirements for the 30% ruling, you can successfully apply for the ruling. If you already have the 30% ruling but you would like to switch to work for this foreign employer, you can change the ruling to this employment.
Keep in mind Dutch labour law
It is important to know that Dutch labour law applies to any employment done in the Netherlands. The employment can be based on a foreign contract or no contract. Regardless, Dutch employment law applies. Your foreign employer should be aware of that and it is recommended that you use the services of a Dutch labour lawyer to act on this fact.
Tax woes? Need help setting up the payroll for your foreign employer? Tax is Exciting BV – Orange Tax can help you out. Their payroll team is already excited about starting the set up for you. Please contact them for a quote now.