Taxation of international executives
Residents are subject to Dutch income tax on their worldwide compensation. If any of the compensation is attributable to services performed outside the Netherlands and is subject to foreign tax and tax treaty protection, relief from double taxation is available.
Non-residents are subject to Dutch income tax on Dutch-source income such as real estate and on compensation attributable to services actually performed in the Netherlands. This latter rule, however, does not apply to directors and supervisory board members of Dutch companies; they are taxed for their full directors’ remuneration from the Dutch company.
The official currency of the Netherlands is the Euro (EUR).
Herein, the host country refers to the country to which the employee is assigned. The home country refers to the country where the assignee lives when he/she is not on assignment.
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