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contract in NL

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    contract in NL

    Hi

    I have the possibility of an assignment in The Netherlands. The rate seems ok on the face of it, even when considering air travel/rent, but I asked a friend who's been contracting for a while and he advised to not bother with contracts in the rest of Europe due to tax/etc. I also have an uneasy feeling but mostly from the agent being a bit pushy.

    Can anyone tell me about the problems and other things I should be considering? What's the tax like? I did search and look, but couldn't see anything obvious.

    Pete.

    #2
    Tax is high in NL unless they still do the 30% scheme, either way u'll be liable for UK tax too if u are in UK over 91 days a year, amongst other tests...

    So go for it if rate is stellar and pay a tax advisor...

    Comment


      #3
      Originally posted by dwater View Post
      Hi

      I have the possibility of an assignment in The Netherlands. The rate seems ok on the face of it, even when considering air travel/rent, but I asked a friend who's been contracting for a while and he advised to not bother with contracts in the rest of Europe due to tax/etc. I also have an uneasy feeling but mostly from the agent being a bit pushy.

      Can anyone tell me about the problems and other things I should be considering? What's the tax like? I did search and look, but couldn't see anything obvious.

      Pete.
      Just in case these are of any use ...

      IT Contracting in The Netherlands: Living & Working :: Contractor UK

      IT Contracting in The Netherlands: Money & Tax :: Contractor UK

      Maybe worth giving Capital a bell

      Comment


        #4
        Horrible place to work with a constant moan culture. Plus incredibly high taxes, stay away

        Comment


          #5
          Is it still a big deal for tax if it's for a short term gig?

          I just started here for a 3 monther and can concur about the general quality of life. It certainly demonstrates how bad we have it in the UK. The place is spotless, there is a complete lack of litter, the public transport is clean, well priced and works well. I could go on ...

          As far as I've seen so far, it's only going to be a problem tax wise once you go into the 6 month mark at which point you have to go on the pay roll of some sorts, or otherwise have a load of hassle to deal with.

          My agent for this gig was at pains to assure me that its fine to use my Ltd company for this at the moment, but then again it would be in his interests to do that and get me on site.

          Comment


            #6
            Originally posted by nucastle View Post
            Is it still a big deal for tax if it's for a short term gig?

            As far as I've seen so far, it's only going to be a problem tax wise once you go into the 6 month mark at which point you have to go on the pay roll of some sorts, or otherwise have a load of hassle to deal with.
            Common misconception.

            Remember there is no tax harmonisation in the EU, and freedom of movement doesn't mean the freedom not to register locally.

            An EU citizen is allowed entry into another EU state for three months as visitor and then MUST register locally and therein lies the rub, as soon as you do that the tax people have you. If you don't do that you are breaking the law. Also if you enter as a worker etc you must register within 30 days.

            Same for a Limited company, one-man businesses move with their one employee, so your limited will be taxed locally as well from day one.

            Comment


              #7
              The Dutch version of IR35 is a few steps ahead on the British one. For that reason the largest bank ING (and probably others) has decided only to offer contracts with contractors who work through an umbrella company paying full Dutch taxes and mandatory health insurance and loads of other stuff. Even if you do qualify for the 30% rate, taking into account accomodation, travel, airport parking etc etc you're never going to better of then a lower paid contract in the UK (And usually contracts in NL are not so generously paid in the first place)

              Comment


                #8
                Originally posted by stek View Post
                Common misconception.

                Remember there is no tax harmonisation in the EU, and freedom of movement doesn't mean the freedom not to register locally.

                An EU citizen is allowed entry into another EU state for three months as visitor and then MUST register locally and therein lies the rub, as soon as you do that the tax people have you. If you don't do that you are breaking the law. Also if you enter as a worker etc you must register within 30 days.

                Same for a Limited company, one-man businesses move with their one employee, so your limited will be taxed locally as well from day one.
                How would a limited company (which for most of us is a UK Ltd) be taxed locally in practice? Some kind of registration or return submitted at the end of your financial year. Or something else?

                Is there no way at all to simplify the process at all? For what it's worth the agency is from Belgium and my ltd is a UK one. Was planning on going home every 1-2 weeks. Hopefully at 4 days in and weeks away from submitting an invoice I'm hoping it's early days for sorting this out.

                Comment


                  #9
                  Can I check a variation on this - if the set up is
                  NL client - US consultancy - UK agent - MyCo
                  The agent is saying there are no NL tax implications for me as my contract with him is twice removed from Dutch end client. I know other EU countries that would be okay just want to check it's the same for NL, would be onsite 4 days per week or 4 weeks in 5 at outset but would look to reduce time onsite as project matures.
                  Cheers
                  M

                  Comment


                    #10
                    Originally posted by mmmBeer View Post
                    Can I check a variation on this - if the set up is
                    NL client - US consultancy - UK agent - MyCo
                    The agent is saying there are no NL tax implications for me as my contract with him is twice removed from Dutch end client. I know other EU countries that would be okay just want to check it's the same for NL, would be onsite 4 days per week or 4 weeks in 5 at outset but would look to reduce time onsite as project matures.
                    Cheers
                    M
                    What other EU countries? Anyway, no. With very few exceptions (e.g. US citizenship), tax is based on residency, i.e. where the work is done. Also, as a controlling person, taxation of YourCo will depend on your personal residency in most cases, as indicated above. That said, you will also have obligations in the UK, and are likely to remain resident here for tax purposes, as well as in NL (definitely if you are here 3 days every week). You can't choose where you pay tax, but you can offset double taxation in most cases.

                    Comment

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