Any foreign tax expert here to help

[tigerinopen]

so if I am out of Netherlands before 183 days, I should 'generally' be ok.
Agency is more than happy for me to go via UK limited company. Have today send the contract.

So if cant be taxed twice in EU for same earnings, I feel I should go for it. The reason I want to go via limited company option is so I can avail a mortgage here and for that advice I have received is that I should go via UK limited company so lenders can see the money coming in UK business. I will pay the tax to Dutch if they go mad after me. I most likely will end up 2 accountants in that case.

[ASB]

You can be taxed twice for the same earnings. The question is to what extent you get relief under any DTA in force.

Let us just suppose that in the 6 months you earn (I use the term loosely) 100,000 euro. And let's also assume that the Dutch authorities believe it is chargeable. I think this will be about 30,000 euro. Call it £25k. [Generally any period in excess of 6 months will bring your annual world wide income into that countries tax net].

If you hadn't declared it then there may well be some penalties involved.

Now, have you read the NL DTA ? You need to.

Let me assume that in the UK you pay a small salary and take the rest in dividends. My understanding of the DTA (some years ago when I was doing a few stints in NL) is that any Dutch income tax paid can be relieved against UK income tax paid.

If you take the low salary high dividend route then your UK income tax is probably something close to nil. Hence nothing to reclaim the NL income tax against.

If it is the case that the income is exempt in the UK you are not home and dry, this is because in the UK it is not YOUR income, it is your companies (it was this that gave some issues when I had to pay personal Portuguese income tax as a result of their service withholding tax regime).

I realise your intention is just to go and hope for the best. You probably won't come to the attention of the NL finance dept. But you might.

What if the client has a tax compliance check ?
What if the client simply tells them "I've got this guy from the UK working here" ?
What if there is a requirement for the client to notify of foreign labour ? (there didn't used to be a few years back)
What if the client demands your SoFi number ? (it is illegal to work in NL without one)

You may also like to consider whether your company has any registration obligations.

Registration Obiligation for Intermediaries

The cost of getting it wrong, and getting caught could be expensive.

[petergriffin]

You can be taxed twice for the same earnings.

No.

[yasockie]

What if the client demands your SoFi number ? (it is illegal to work in NL without one)

He won't be working in the NL. His UK company will send him on a business trip to NL for a bit.
While you make some possibly valid claims, I'd go mad if I had to register as an employee with every country that my UK Ltd has sent me to.
To put it another way and to reverse the term loved by HMRC, I will not be disguising my company as an employee just to go through the joys of cmplying with the local labour laws.

[ASB]

No.

As I said you can be.

It can be relieved, possibly in its entirity. It is not the case that only one state gets taxing rights. It all depends on the dta. If you couldnt get taxed twice there would be no need for an dtas.

Check out the eu website. It makes it crystal clear that double taxation fan occur and even gives some examples.

[ASB]

He won't be working in the NL. His UK company will send him on a business trip to NL for a bit.
While you make some possibly valid claims, I'd go mad if I had to register as an employee with every country that my UK Ltd has sent me to.
To put it another way and to reverse the term loved by HMRC, I will not be disguising my company as an employee just to go through the joys of cmplying with the local labour laws.

I agree. His view is his company is sending him on a trip. Whether or not the nl authorities share that view remains to be seen.

[BlasterBates]

Staying below the radar and dealing with a tax authority when they find out about you is a very expensive route. A bit like shopping and only paying when the store detective stops you after you left the shop.

In the end paying tax as a non-resident, which is what you would do is the best and safest route given that the tax rates won't be that high and you won't be paying social insurance.

I would go and see an NL accountant and consult about registering your UK ltd with them and sort out tax or claim exemption.

You won't be taxed twice and in the end I think you'll find little difference in the amount of tax you pay, given that you are non-resident in NL and only there for 6 months.

Tax authorities have a very clear rule that non-residents pay tax on income sourced in their country. It's up to you to argue why you're exempt. Better to deal with the bureacrats than the "Special Investigation Heavy Mob" which is what you get if you're "below the radar".

[stek]

so if I am out of Netherlands before 183 days, I should 'generally' be ok.
Agency is more than happy for me to go via UK limited company. Have today send the contract.

So if cant be taxed twice in EU for same earnings, I feel I should go for it. The reason I want to go via limited company option is so I can avail a mortgage here and for that advice I have received is that I should go via UK limited company so lenders can see the money coming in UK business. I will pay the tax to Dutch if they go mad after me. I most likely will end up 2 accountants in that case.

Look, I am 99% certain that the agent will insist u go Dutch Brolly and if you refuse, will drop you cos there are loads of others. So do that.

Or is this a slim chance of maybe a contract that some agent as tentatively contracted you about, or a definite offer?

[tigerinopen]

Staying below the radar and dealing with a tax authority when they find out about you is a very expensive route. A bit like shopping and only paying when the store detective stops you after you left the shop.

In the end paying tax as a non-resident, which is what you would do is the best and safest route given that the tax rates won't be that high and you won't be paying social insurance.

I would go and see an NL accountant and consult about registering your UK ltd with them and sort out tax or claim exemption.

You won't be taxed twice and in the end I think you'll find little difference in the amount of tax you pay, given that you are non-resident in NL and only there for 6 months.

Tax authorities have a very clear rule that non-residents pay tax on income sourced in their country. It's up to you to argue why you're exempt. Better to deal with the bureacrats than the "Special Investigation Heavy Mob" which is what you get if you're "below the radar".

Spoke to PSG and they advised to speak to ITS International for contracting overseas. ITS themselves could not help as they mostly deal in other countries in EU but they advised me to speak to Yellow Stone accountants in Netherlands. So I called them up this morning and they said they can help me get a SOFI and VAR and they said that I should not have to pay any NL tax as long as I leave the country before 183 days.

[EAFS]

Hi,

I need some advice on whether my limited company and/or I will be liable for Dutch taxes if I work there on a 6 months contract.
I will be having my family in UK for the whole duration.
I am currently a UK tax resident and maintain my home here.
Will be in Netherlands from Monday - Friday (sometimes may be up to Thursday, not sure yet).
Will be invoicing through UK limited and paying myself through it.

Regards,

When working in the Netherlands you are taxable from day 1 on Dutch sourced income.
You can work through your limited company but you will need to register your company with the dutch tax office and receive a VAR certificate, you will then need to engage with a Dutch accountant to process your monthly payroll, you must pay monthly payroll taxes in the Netherlands. As the contract is only 6 months and I presume you have not worked in the Netherlands previously you would be looking at a positive retention figure, I can produce projections for your contract if this would help you,,, please feel free to contact me. The client will almost certainly want you to utilise a Dutch umbrella, this is due to chain law legislation, Another issue that could come up as it auditor statements. The agency or client may request an auditor statement to prove payment of taxes before releasing your final payment. I have seen this before however it has never been an issue as we always provide the auditor statements or the use of a G account. Some contractors using other companies have not been so fortunate.