Dutch Severance Payment Tax Analysis for International Employee
FirmNL analysed the employee’s tax residency, employment history, and applicable double taxation treaties to determine whether the Netherlands had taxing rights over the severance payment.
Challenges in Dutch Severance Payment Taxation for International Employees
The key challenge was determining whether Dutch wage tax withholding applied to the severance payment of an international employee who had not lived or worked in the Netherlands for several years.
Dutch Wage Tax Withholding on Severance Payments
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Application of Double Taxation Treaties
Avoiding Incorrect Dutch Tax Withholding
Ensuring Correct Tax Treatment for Severance Payment
FirmNL analysed the employee’s tax residency, employment history, and applicable double taxation treaties to determine whether the Netherlands had taxing rights over the severance payment.
Expert Tax Analysis and Consultation
FirmNL provided the employee with a comprehensive analysis of their tax position, ensuring that the correct treatment of the severance payment was applied.
Employment History & Tax Residency Analysis
FirmNL meticulously reviewed the employee's employment history, confirming that they had not lived or worked in the Netherlands for several years.
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Technical Tax Position Based on Treaties
Based on the analysis, FirmNL developed a robust technical position, leveraging applicable double taxation treaties to support the case.
Submission to Dutch Tax Authorities for Confirmation
FirmNL submitted a formal request to the Dutch Tax Authorities, confirming that no wage tax withholding was necessary, thus facilitating the correct processing of the severance payment.
Hear It From Our Clients
FirmNL provided clear guidance and handled the matter efficiently, helping ensure the correct tax treatment of the severance payment.
Confirmation of No Dutch Wage Tax Withholding
Following FirmNL’s analysis and submission, confirmation was obtained from the Dutch Tax Authorities that no Dutch wage tax withholding was required.
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FirmNL made Sportsfolio LLP VAT-compliant in the Netherlands
We contacted FirmNL for fiscal representation to trade our hunting prodcuts across Europe. Despite some delays early on, hey stepped in direectly with tax authorities to handle application and refund issues concering the government security deposit and resolved everything. Thanks to their help, we now impoort an export smoothly across the EU -- fully compliant and benefit from Article 23 VAT deferment -- all without setting up a local BV. Highly professional and solution-orientated.
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FirmNL specializes in helping foreign entrepreneurs establish a presence across the EU. From Dutch BV incorporation to tax compliance, sales outsourcing and EU fulfillment — we provide solutions tailored to your goals.
