Expat payroll

30% facility
International salaries require expert payroll knowledge. An expatriate / foreign worker with specialistic knowledge, who is temporarily working in the Netherlands can probably benefit from the 30% facility in the Netherlands.

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Internationale Payroll - expats payroll -

Around 30% of the income of this expat can then be paid tax-free. To file request for the possible use of the 30% facility in the Netherlands requires accuracy and prompt submission.

There are other factors which may apply to expatriate payroll.

Where is the person insured socially?

Is the salary split applicable, and will other countries be making payments?

How is delt with a company car?

Is the housing rent being compensated temporarily?

For how long is the expat in the Netherlands?

Are the work and residence permits in order?

Are you paying the costs of income tax returns for this person?

Is there any compensation in the Cost of Living Allowance (COLA)?

The 30% facility in the Netherlands is often applied incorrectly in regular payroll. Arvode, in collaboration with international tax advisors, ensures correct processing of this complex matter. The service is an integral part of our regular service.

Salary Split
If an employee works in two or more countries, there may be fiscal benefits, when payments are granted separatly in each country. In this case, the so-called “salary split” is applicable.

For a statutory director, a salary split appears at first sight easy to implement. It is often sufficient for the director to perform activities for the foreign company, even if these take place in the Netherlands. However a laborious procedure must be followed, keeping an eye on the consequences for:

Pension credits;

Employment contracts;

Social security;

Deductible costs;

Personal situation.

Conditions
There are certain rules that must be applied, in order to divide the salary between different countries . The employee only qualifies for a salary split if he actually performs his activities in different countries, where the salary is then taxed proportionally in the countries concerned.

Because part of the work is performed at a foreign division of the company, exemption applies for that part of the salary to avoid double taxation in the Netherlands. Each case must be assessed individually to see whether a salary split is beneficial.

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