Extension agreements Belgium and Germany for working from home
The Dutch government has come to an agreement with Belgium and Germany to further extend the existing agreements with respect to the tax position of employees working at home, instead of in the country where they would normally work, due to COVID-19. The extension applies in any case until 31 March 2022.
By way of derogation from the respective tax treaty, the choice can be made for the income received during the days an employee, solely due to COVID-19, works at home, to be considered taxable in the country of employment. The condition is that, normally, this would have been the case. This special rule only applies if the other country actually levies tax. Moreover, the employee must be able to provide a statement from his employer.
The extended agreement with Belgium has been formalized. For the agreement with Germany, this will take place as soon as possible.
Should you have any questions with respect to the above, please contact your trusted adviser or one of the tax advisers of our Employment & Benefits team
Hans van RuitenPartner Tax adviser
Hans van Ruiten, tax adviser, is a member of the Employment & Benefits practice group in our Rotterdam office. He has a wide expertise (over 30 years of experience) in employment taxation matters. An important part of his practice is regarding equity incentives.T: +31 10 224 64 18 E: [email protected]
Jelmer PostSenior Associate Tax Adviser
Jelmer Post, senior tax lawyer, is a member of the Employment & Benefits practice group. He advises large and medium-sized companies in both national and international context, on wage tax and social security related matters.T: +31 10 224 62 19 M: +31 6 53 42 65 56 E: [email protected]