An employee working in both the Netherlands and other countries is usually liable for wage taxes and social security in more than one country. This would normally lead to double taxes, but tax treaties and other national and international laws and regulations aim to prevent such inconvenience. For this reason, salary split will in most cases be beneficial for the employee. Therefore payroll should be performed as a salary split in the relevant countries with communication between the local payroll administrations.
Salary split requirements
Payroll may differ depending on the period and the situation, but it should always meet the regulations regarding international transfer pricing:
- Well-captured agreements
- An employee must actually work abroad for employers there
- An employee must answer to a foreign employer
- Salary must be in line with the quality and quantity of the work
- There should be evidence to demonstrate the amount of days spent abroad (travel calendar)
With Arvode, you are guaranteed of the right administration, carried out in collaboration with the tax advisor and the foreign payroll administrations.