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GVN International Tax Services
US expat taxation Netherlands

US expats and Greencard holders resident in The Netherlands are taxable in The Netherlands on their worldwide income due to their residency and in the US duetheir US nationality. The US taxesits citizens on worldwide income irrespective of their state of residency. This could potentially lead to issues of double taxation.

Application of the US - Netherlands taxtreaty avoids potential double taxation issues bydesignatingthe stateallowedtotax. Depending on the type of income i.e. income from employment, dividends, business income etc, the tax treaty will designate which state (winner state) is allowed to tax. The other(loser state) will include the income in its taxable base but will have to provide relief of double taxation by providing a credit or an exemption. A special situation applies with US nationals who have been grantedthe 30%-ruling.

30% ruling and US nationals
Individuals recruited from above who possess specific expertise which is scarce on the Dutch labor market andearn at least EUR 36.889,- (2016) are entitled to the 30% ruling. A lowersalary of EUR 28.041,- (2016) applies to individuals with a Masters degreeand are below 30 years of age.

The benefit of the 30%-ruling is that the Dutch taxable salary is reduced to a 70% taxable salary, therefore 30% of the salary will not be taxed.

An additional advantage of the 30% ruling is the option to elect the deemed non-resident taxpayer status. Individuals electing this status are nottaxed on their worldwide savings and investments in The Netherlands. They are taxed as non-residents for savings and investment purposes. Non-residents are onlytaxed on the ownership of Dutch property in The Netherlands which is notused as primary property such as a second home.

US expatswho have been granted the 30% ruling and elect the deemed non-resident taxpayer status are not treated as residents for Dutch tax purposes. This is due to the application of the Netherlands - US tax treaty. US residents earning income from employment are there fore only taxed on their working days in The Netherlands unlike non US nationals who are treated as regularres idents for their income from employement and are taxed on all days worked in The Netherlands.

US Nationalswith a (US) entity (company)
US nationals resident in The Netherlands owning a company in the US such as a corporation or LLC are taxable on the income from share holdings in the Netherlands provided they own at least 5% of the share capital. Taxable income from US shares includes dividends and profits from capital gains. Application of the Netherlands - US tax may avoid double taxation of dividends and taxable capital gains.

30%-ruling andowning a US company
US expats who have been grantedthe 30%-ruling andown at least 5% of the share capital of a US company and elect the deemed non- taxpayer status are not taxable on income from US shareholdings provided the company remains a US resident of the US for tax treaty purposes.

US Greencard holders
Please note that all of the above is applicable to US greencard holders as well residing in The Netherlands and who have been grantedthe 30% ruling.

Our services for US nationals
GVN International Tax Services offers a wide range of services for US nationals.

  • - compliance services such as filing Dutch tax returns for US nationals and US corporations resident in the Netherlands taking into account potential double taxation issues;
  • - filing VAT tax returns;
  • - solvingproblemswiththe Dutch tax authorities by filing letters of objectionandlitigation;
  • - determining a taxablepresence in The Netherlands;
  • - 30%- ruling application;
  • - preparing annual reports and providing bookkeeping services for companies;
  • - payrolling;
  • - various legal services including advice and settingup Dutch entities.
Deadline

For the annual tax return form, the deadline is April 1st. We can use a special ruling with the tax authorities which allows us to get a time extension for the income tax return until May 1st of the next year.