Horizons April - The NetherlandsGES Newsflash The Netherlands –Decree by state secretary: Interpretation of Concept of Employer in Tax Conventions |
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As from 12 January 2010, the Netherlands has an official material interpretation of the concept of “employer” in tax conventions.
Key findings
As from 12 January 2010, the Netherlands has an official material interpretation of the concept of “employer” in tax conventions: the employer is the person through whom the employee has a relationship of authority with respect to work. In practice, the Netherlands already applied such interpretation in the last few years.
A 60-day rule will be implemented for short-term, intra-group secondments, with the effect that the material employer is not deemed to be present when certain conditions are met.
In relation to intra-group secondments to the Netherlands, the Decree approves that for wage tax purposes the Dutch group company may be regarded as the withholding agent and may assume all wage tax obligations of the foreign group company.
