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TaxRobin
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Experience:  International tax
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There, I am UK resident and currently working in Netherlands

Resolved Question:

Hi there, I am UK resident and currently working in Netherlands on short term basis and paying taxes here in Netherlands. I would like to know if I would have to pay the taxes in the UK for my income in Netherlands.
I would appreciate you response on this same.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
Also what do I need to do while submitting my self assessment.
Customer: replied 1 year ago.
Sorry for adding another things, would you kindly also explain the 183 days rule for Netherlands?
Expert:  TaxRobin replied 1 year ago.
Hello When you are UK resident you are normally taxed on the arising basis of taxation. This means that all your worldwide income and gains will be taxable in the UK.Therefore, even if your foreign income and gains have already been taxed in another country they will still be taxable in the UK and you must declare all of your foreign income and gains on your tax return. In many cases, relief is given in the UK for foreign tax paid on foreign income and gains under the provisions of the relevant Double Taxation Agreements (DTAs) or via unilateral relief. In most tax treaties, the dependent personal services (this is an employee status term) article states that the employee will be taxed in the employee’s home country if the employee’s stay in the Netherlands does not exceed 183 days (in a calendar year or a 12-month period).The Netherlands has adopted the economic employer approach in interpreting the term employer, the employee could be taxable from the employee’s first day of presence in the Netherlands.When the employee (of a foreign company) has stayed more than 183 days in the Netherlands or when the employee’s remuneration is attributable to a permanent establishment of the employer in the Netherlands then tax is applied.What all that means is if you work for a Dutch Company you are taxed from the start when you go to the Netherlands. If you work for a foreign company and go to the Netherlands then you are taxed if you stay more than 183 days.You will be allowed to claim a credit in the UK for the taxes paid on your income in the Netherlands. I strongly suggest you use a professional to complete you self assessment. If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.
Customer: replied 1 year ago.
Hi there,Thanks for your reply, just to clarify, if I have my company in the UK and I work for Dutch client via that company then can I benefit from 183 days rule? My company will receive the payment from another UK company.
Expert:  TaxRobin replied 1 year ago.
If the company you work for does not have a permanent place of business in the Netherlands you may fall under that rule.There are three types of tax statuses:ResidentPartial non-residentNon-resident A non-resident taxpayer is an individual who is not treated as a resident taxpayer in the Netherlands. Therefore, they are taxed on worldwide income elsewhere. A non-resident taxpayer will pay tax only on income that can be allocated to the Netherlands. According to the Netherland's ruling, for the application of the tax treaty, the employer is the company that:• Has the authority to instruct the assignee• Bears the risk and expense of the duties performed, including a specific and individually traceable recharge of the employment expenses.Employees of foreign companies who are assigned to the Netherlands within an international group as part of an exchange program, for career development, or on the grounds of specific expertise, are exempt from Dutch income tax on their employment income if they work in the Netherlands for a period of no longer than 60 days in any 12-month period.It appears that the tax will be applied in the Netherlands so you would seek relief from double taxation on your UK return.
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