Let us know how we can help you. We can call you:
Or you can call us directly:
T +31 24 366 69 50
If an employee is working in two or more countries, you can achieve significant tax benefits with a ‘salary split’. However, this may also have a negative effect. It all depends on the employee’s individual financial position. A salary split basically means that you have the salary paid out in the countries where the employee works with the most beneficial distribution key.
If you pay out part of the salary in a foreign subsidiary, it is possible that your employee misses out on tax deduction options in the Netherlands. In this situation, tax deductibles on income tax and social insurance premiums cannot be fully applied. This could constitute a financial disadvantage compared with the situation where the full salary would be taxed in the Netherlands. In order to compensate for this disadvantage, the Netherlands made arrangements with some other countries (including Belgium and probably Germany as per 1 January 2014) for compensation of any financial disadvantages.
In order to decide on the right key, it is important to be well-versed in regulations and legislation, and to be aware of any tax treaties. The situation is different for each country. Especially if you are stationing people in more than two countries, we recommend involving a professional. Bol International’s professionals have extensive experience with salary splits. They are happy to help you with these issues.
Setting up a splitting structure is by definition a custom job. You also must take into account the implications regarding social insurance and pension accrual. Furthermore, you must comply with certain criteria in order to be successful. Bol International is happy to be at your service in this respect.
Normally, the worldwide income must be declared on the income tax return in the country of residence. This does not automatically mean paying double taxation.
The tax treaties between the country of work and the country of residence often prevent double taxation, ensuring that the salary amounts are taxed in one country only.
Yes. The 30% tax rule may be applied only on the Dutch portion. Bol International’s professionals can show the exact effect on the net wage.
The answer to this question depends on the provisions of the employment contract. Furthermore, the legislation and court decisions of the relevant country are important. It is impossible to provide an uniform answer, as this will be different for each individual situation.