International growth: determining your tax position
To know what you face in terms of taxation, you first need to determine your tax position. This can be complicated in cases of international growth. For example, what do you need to know about wage tax, tax residency and the position of directors / major shareholders? It is important to know beforehand where you will need to pay taxes, what your obligations are and where possible opportunities lie. Baker Tilly has all the necessary expertise required to support your international growth ambitions. Our advisors would be happy to help you get started!
This page contains information about outbound growth: expanding abroad from the Netherlands. If you are looking for information on expansion to the Netherlands from abroad, please read more about inbound growth here.
Wage tax abroad
If you expand your business activities to another country, there is a good chance you will want to hire foreign staff or have your Dutch personnel work abroad (temporarily). Such situations lead to complicated tax obligations – both in the Netherlands and abroad. Our experts discuss several key points of consideration for the (temporary or structural) foreign employment of employees living in the Netherlands.
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VAT abroad
If you plan to expand your business operations to other countries, it is crucial that you understand your tax obligations and have a firm grip on your compliance. Are you only planning to store goods at a third-party logistics company outside the Netherlands? Or do you also have local personnel or a local office? These situations may be interpreted as a local presence or permanent establishment for corporate income tax purposes. But how does that work for VAT? Make sure you are aware of these matters before you start.
Tax residency and personal income tax
If you do business in another country, you will want to know your personal tax position too. What are the rules for personal income taxation if you run your own business, such as a general partnership or sole proprietorship, abroad? Will you remain a tax resident of the Netherlands? And how is double taxation prevented in international situations? Our advisors explain the rules.
Double taxation and the position of directors / major shareholders
Remuneration for directors for work performed in another country is subject to complicated tax rules. Make sure you are aware of the tax consequences. Which country may tax the income? What about the customary wages for a director / major shareholder? And how do you prevent double taxation?
International business in practice
''As soon as an employee is set to work in a different country, you need to check the consequences. Right from day one, or preferably beforehand.''
If your employees are going to work in another country, you will need to take action as an employer even before they start their activities abroad. Different labour law regulations may apply immediately. Tamara van den Broek, Global Mobility expert at Baker Tilly, discusses points of attention for international employership and foreign employment.
Contact us
Do you have any questions about the topics on this page? Or would you like to know more about our services and how we can support your international ambitions? Leave your details here and one of our advisors will contact you!
