Work remotely in another country

Questions and Answers > Category: Taxation of IP > Work remotely in another country

Margaret 5 years ago

Hello.
I live in the Netherlands and have a family residence permit (my partner moved here as a highly qualified specialist). I was offered a job under a work contract for Russia. I myself am a citizen of Belarus. I am wondering where and how should I pay taxes in this case? As I understand it, the employer will pay taxes for me in Russia, but will I mention this income in my annual declaration in the Netherlands? What happens in this case regarding double taxation? Maybe you also know if it's legal for me to work like that without the threat of losing my residence permit?
Thank you!

3 response

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Nalog.nl Admin 5 years ago

Margarita, good afternoon,
You can work, there are no problems with this, as a partner of a highly qualified specialist you have the right to work. The main thing is to show you your income. It is important to understand whether you and your partner are also fiscal partners or not, since it depends on whether you file a separate tax return or a common one with your partner. You can read more about what it is. here.

There are several ways to show income:
– you can register an individual entrepreneur (EMZ) in the Netherlands and work as a private entrepreneur, issuing invoices to your employer. In this case, you will pay taxes in NL and which ones will depend on your income and whether you are fiscal partners.
– you can be registered with an employer and pay taxes in the Russian Federation, then the income will have to be reported as income from outside the tax return and the rule for avoiding double taxation will apply here, which means you most likely will not pay taxes. Unfortunately, this can only be said for sure after filing the declaration. This happens because in addition to the income tax itself, you also have to pay social insurance contributions.

Best regards, Nalog.nl team

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Alexander 5 years ago

Hello, I have a similar situation as Margarita, only I am a citizen of the Russian Federation. We have been registered in NL since 22/05/19 and I have been working remotely in the Russian Federation since 03/06/19. Not married, did not register separately as partners in Hement (but entered the NL as a CM and a partner). For me, it’s still unclear which is better: can one be considered a fiscal partner or a neti? And another question - when do you need to file a declaration?

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Nalog.nl Admin 5 years ago

Alexander, good afternoon,

Unfortunately, it is impossible to say how best to submit a general declaration, it all depends on the situation. In some cases it is more profitable to be considered as fiscal partners, and in some it is not. A partnership for the IND is not the same as a partnership for the tax authorities. It may be that you came as partners, but the tax authorities do not consider you as such.

If you want to decide what is more profitable in your specific situation, you can order a trial calculation service from us. This means that we will calculate both options for you and you can make a decision. You can order the service by writing us an e-mail info@nalog.nl

The deadline for filing a declaration for 2019 is from March 1, 2020 to April 30, 2020.

Best regards, Nalog.nl team