Are you a Dutch resident individual and director or supervisory director of a foreign resident company? Your tax status may change.
The Netherlands grants a relief for double taxation for the foreign director’s fee in order to mitigate the effects of double taxation. In case the Dutch relief for double taxation exceeds the actual foreign tax, this is an advantage in your hands.
Recently, the Dutch Tax Authorities announced their intention to maximize the Dutch relief for double taxation to the amount of the foreign tax. The possible advantage will in that case become non-existent.
For some tax treaties, the Netherlands will have to renegotiate. For other, newer, tax treaties, the Netherlands can change the status by unilaterally revoking a favorable decision.
Please do contact us if you want to know what this will mean for you.