Foreigners / Non-residents

Are you working in the Netherlands and from abroad? EuroCount Consultancy can help you out with everything needed for the Dutch Tax System, like filling out and completing P forms, C forms, M forms, or complete applications for Rent allowance, Healthcare allowance, Child allowance, Child Benefit and 30% facility ruling. We are specialized in assisting foreigners / non-residents and foreign businesses who want to work and do business in the Netherlands.  Our approach is very personal and direct. Lines are short and we do all we can to find a solution around the client’s needs.

Checklist

To be able to complete your tax return we need a lot of information. To help you to provide the right information we have created a checklist (questionnaire). We kindly request you to answer all the relevant questions and to provide us with the requested documents whereby copies are preferred. The tax return will be completed based on the information you provide. The completed checklist including the required documents can be send (by post or email) to our office. You can find the address on the checklist.

Immigration and Taxation

When you take up residence in the Netherlands, you are (usually) immigrating into this country. For tax purposes, you will be regarded as a domestic taxpayer from the moment of immigration. This means that you will have to pay Dutch income tax and national insurance contributions. Other aspects will also play a part when you immigrate into the Netherlands.

Among others, As a Dutch taxpayer you will need a personal identification number (the so-called sofi-number or BSN-number), while you will also have to deal with customs regulations when moving to the Netherlands. If you possess specific expertise, you may qualify for special tax facilities.

Emigration and Taxation

In most cases a person taking up residence abroad is deemed to have emigrated. Emigration has consequences for your liability to pay income tax and national insurance contributions. If you intend to live abroad, it is important for you to know whether you will be deemed to have emigrated.

If you come to the Netherlands to work

If a foreigner / non-resident is working in the Netherlands he becomes subject to Dutch tax according to agreements in the international tax treaties. You may also be eligible for a special expense reimbursement facility: the 30% facility for incoming employees. This facility means that your employer can pay you 30% of your wages as a (tax-free) allowance for the additional costs of your stay in the Netherlands.
You will be eligible for this facility if you have specific expertise that is unavailable or scarce on the Dutch labour market. If you are eligible for the 30% facility, you may also opt for partial non-resident taxpayer status. In some cases, you will be regarded as a non-resident taxpayer for part of your income tax liability. This may result in a tax advantage.

30% facility or 30% ruling for incoming employees

If you come to the Netherlands to work, you may face additional expenses (known as extraterritorial expenses). These costs are not deductible for the foreigner / non-resident in the Dutch income tax return. That’s why the 30% ruling was created. Your employer can pay you a tax-free allowance for the extraterritorial expenses you incur. In addition, your employer can pay you 30% of your wages, including the allowance, free of tax. This facility is known as the 30% facility or 30% ruling. This allowance will cover the extra territorial costs without having to provide proof that the costs are really made. Under this facility, there is no need to provide evidence of any expenses incurred. If the costs are more then the allowance then the employer can also reimburse the real costs instead of using the 30% ruling but then proof must be provided.
To qualify for this ruling the foreigner / non-resident must be an incoming employee and have certain skills and experience which are scarce on the Dutch labour market. An application must be made to have the ruling granted by the Dutch tax authorities. Proof must be provided that the requirements are met.

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Requirements

The foreigner / non-resident must be an employee who is hired in another country by an employer or sent to an employer within the same group of companies at management level, with a specific expertise that is scarce or absent on the job market in the Netherlands. It’s not allowed to split the gross salary mentioned in the employment agreement in a taxable part of 70% and a non-taxable part of 30%. Instead the gross salary must be reduced to 70% on top of which a tax free remuneration of 30% can be paid. Consequence is that all the rights based on the gross salary will be reduced too like pension and social security.

Submitting a request for application of the 30% facility

In order to apply the 30% facility for incoming employees, you need the permission of the Tax and Customs Administration. To obtain this facility EuroCount Consultancy provides assistance.

Which form do I need?

If you live in the Netherlands, you qualify as a domestic taxpayer. If you live abroad and receive income from the Netherlands that is taxable in the Netherlands, you qualify as a non-domestic taxpayer. In both cases, you will be subject to Dutch income tax.

P Form

When you lived in the Netherlands for the whole year (and you’re not immigrated to or emigrated from the Netherlands) we can file your tax return electronically. In that case, we will use Form P. If you have received a letter from the Dutch tax authorities (Belastingdienst), you are required to file your return before the deadline stated on the letter (usually before the first of April of each year). If you need more time, EuroCount Consultancy may apply for a postponement.

M Form

We may not file your tax return electronically if you lived in the Netherlands for only part of the year because you immigrated to or emigrated from the Netherlands. In that case, we will use Form M. If you have received a M Form, you are required to file your return before the deadline stated on the return form. If you need more time, EuroCount Consultancy may apply for a postponement.

C Form

If you have received an invitation to file a tax return and you do not wish to make use of the tax-return program for non-domestic taxpayers, you are required to file a C Form. You are required to file the return before the deadline indicated in the Invitation to file or on the front page of the tax form. If you need more time, EuroCount Consultancy may apply for a postponement.

We will use a C Form if we do not file your tax return electronically and if one or more of the following situations applied to you:
You lived outside the Netherlands throughout the year (this does not apply to government employees stationed abroad)
You were liable to pay tax and/or national insurance contributions in the Netherlands.

W Form

We use form W to receive a tax return for business owners and freelancers in the Netherlands. The costs for completing a W form is deductible from your company profit, because the costs are seen as business expenses. In most cases we can get the VAT/BTW back as well. Completing W forms is quite complicated and because of that the costs are higher and depends on the company size. If you have received a letter from the Dutch tax authorities (Belastingdienst), you are required to file your return before the deadline stated on the letter (usually before the first of April of each year). If you need more time, EuroCount Consultancy may apply for a postponement.

Do you want more information, do you have specific questions or do you want to make an appointment, please contact us. This is possible by phone, e-mail or the contact form (near Contact).