Netherlands: Cross-border pension, annuities

Netherlands: Cross-border pension, annuities

A decree on the international aspects of pensions and annuity entitlements provides an update to guidance from 2008, and addresses the accrual of pension rights by incoming employees and the settlement of pensions of outgoing employees.

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Foreign pension plans typically do not comply with the rules under Dutch law—for example, rules concerning approved pension insurers, accrual rates, and the maximum pensionable salary of €100,000. When incoming employees continue to participate in their foreign pension plans, this could possibly result in taxable employer contributions and non-deductible employee contributions. For outgoing employees, this could involve a transfer of pension benefits being taxed or economic double taxation at the time the pension benefits are paid out (taxed accrual and taxed pension benefit payments).

The 2008 guidance provided certain concessions for cross-border pensions. The October 2015 decree updates this guidance.

 

Read an October 2015 report prepared by the KPMG member firm in the Netherlands: New decree on the international aspects of pensions and annuity entitlements

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