Do you have questions about expat facilities?

Employees temporarily working abroad

Employees who are temporarily assigned abroad may incur additional costs as a result of working outside their home country. In certain situations, tax rules allow employers to provide a tax-free allowance for these additional costs.

For example, the Dutch tax expat may apply to certain categories of employees who are temporarily sent abroad from the Netherlands, including:

• Employees posted abroad from the Netherlands to specific designated countries/regions;
• Employees posted abroad from the Netherlands for scientific or educational purposes;
• Officials representing the Netherlands abroad;
• Certain officials, members of the judiciary and members of the military who are posted to the BES islands, Curaçao, Sint Maarten or Aruba;
• Members of the military who are posted abroad to countries outside the Netherlands.

In addition, other specific conditions apply. The employee must spend at least 45 days abroad within a 12-month period. Assignments of fewer than 15 days are disregarded when determining whether this requirement is met. Once the 45-day requirement has been satisfied, assignments of at least 10 days may also be considered for the application of the facility.

Whether the expat scheme can be applied therefore depends on the employee’s specific circumstances, the destination and the duration and pattern of the work abroad. It is important to assess this before the assignment and ensure that any available facilities are applied correctly through payroll.

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International tax facilities

Other countries may also offer specific tax facilities for employees who work there temporarily or relocate for work. These regimes differ significantly between countries and may be subject to specific application procedures, deadlines and eligibility requirements.

How can Van Oers help?

We can assist with:

• assessing eligibility for the Dutch expat scheme;
• monitoring the conditions during the term of the scheme;
• assessing the Dutch tax facilities available for employees temporarily working abroad;
• determining the tax consequences of an international assignment; and
• coordinating available tax facilities with advisers in the country of assignment.

Moving to the Netherlands or sending employees abroad? Van Oers can help identify the relevant tax facilities and make sure these are considered as part of the international employment arrangement.