Victoria 3 years ago
Good afternoon. I am an individual entrepreneur in Russia under the scheme of 15% tax on the amount of “income minus expenses.” I pay taxes in Russia, there are no other types of employment. In February 2020, she moved to the Netherlands. The questions are: 1) is the tax paid in Russia taken into account when paying tax in the Netherlands (in other words, can I reduce my tax payment in the Netherlands by the amount that I have already paid in Russia)? 2) what is considered the income of an individual entrepreneur when calculating tax in the Netherlands: the total income of the individual entrepreneur or “income minus expenses” (that is, what is the taxable base for my individual entrepreneur in Russia)? 3) with a conditional tax base for 2020 of 8000 euros and tax paid in Russia of 1200 euros, will I have to pay tax in the Netherlands?
Nalog.nl Admin 3 years ago
Good afternoon Victoria
The Netherlands and the Russian Federation signed an agreement on the avoidance of double taxation, which makes it possible to take into account the fact that part of the taxes was withheld in the Russian Federation. The extent of the exemption depends on your situation, we can prepare your report applying all the conditions for the exemption of your income.
Both in the Netherlands and in the Russian Federation, you pay taxes only on your net profit, that is, your “income minus expenses”
The amount of taxes paid in the Russian Federation does not play a role. Because your income is not high, most likely, the tax credits of a resident of the Netherlands will pay off the accrued income tax. We can tell you the exact amount after a preliminary calculation.
Regards, Nalog.nl Team
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