Dutch tax treatment foreign non-executive director will change significantly previous message

Dutch tax treatment foreign non-executive director will change significantly

Many foreign non-executive directors (commissaris) benefit from the 30% ruling facility, which results in a large exemption of Dutch tax. This is a large benefit and is the result of the fact that a non-executive director is qualified as ‘deemed employee’ in Dutch tax law.

This ‘deemed-employment’ status will most likely disappear as per May 1, 2016 . The consequences is that the 30% benefit may disappear for many foreign non-executive directors. There are solutions, but it depends whether it is possible to apply that in each situation. For instance if the income of the non-executive director qualifies as taxable profit, it will be more difficult to find solutions as a result of the proposed change.

Although, the State Secretary of Finance still needs to communicate how he will eliminate the ‘deemed-employment’ status in tax law, it is recommendable to analyse your position and possible solutions.

For further questions, please contact guido.van.asperen@fisconti.nl (+31 615041623).

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