The Netherlands has tax treaties with a number of countries to determine exactly where taxes must be paid (i.e. in which jurisdiction), thus avoiding 'double taxation'. Where a treaty exists, it supersedes Dutch national legislation and is mandatory: there is no discretion to 'choose' where to pay tax. If a treaty states that tax is to be paid in your country of origin, it may be necessary to claim exemption from at-source deductions in the Netherlands.
Because there are so many different treaties with various countries, HR Services of Delft University of Technology will examine each case individually to determine whether tax exemption must be claimed. If so, the staff member will be required to complete a questionnaire. This mandatory check is called Tax Exemption.
If a tax treaty is in place, this will contain provisions regarding which country may levy tax on your income from employment. If the levy has been assigned to the country to which you are being transferred, your employer does not have to withhold any wage tax. In order to be certain that this treaty is applied correctly, your Dutch employer may want a statement from the tax administration.
TU Delft's HR Services department will undertake the entire process and will ensure that the staff member is duly informed of the tax administration's decision. Remember that taxes will still be payable on your return to your home country.
- Read more about International tax regulations on the website of the Dutch Tax authorities(Belastingdienst)