Doing Business in the Netherlands 2012 - American Chamber of ...

17.4 Income From Employment
17.4.1 Managing and Supervisory Directors
In general, remuneration received by managing directors and
supervisory directors of companies located in the Netherlands is
subject to Dutch income tax even if they are non-residents and
perform their activities outside the Netherlands. The company paying
the remuneration must withhold wage tax and social security
contributions, if any (as a pre-levy on income tax), from payments
made to the directors.
17.4.2 Other Employees
Employment income earned by Dutch resident employees is fully
subject to personal income tax. Employees who are residents of a
non-treaty country are subject to Dutch income tax on their
employment income to the extent that the employment is deemed
being performed within the Netherlands. Those who are residents of a
treaty country but work in the Netherlands are also subject to Dutch
tax. In general, based on international tax treaties (if applicable),
employment income is taxed in the country where the employment
activities are performed.
However, employment income is taxable in the country of residence
if:
� the employee spends less than 183 days per calendar year (or
per any 12-month period, depending on the applicable tax
treaty) in the working country;
� the remuneration is not paid by an employer in that working
country; and
� the remuneration is not charged to a branch of the employer in
that working country.
154 Baker & McKenzie