uu77
If you live in Germany or Belgium and are employed by uu77, you are a cross-border worker. uu77 facilitates the possibility for cross-border workers to be tax resident and socially insured in the country of residence, rather than in the Netherlands (the country of work). Working more than 49.5% of your working hours from a country other than the Netherlands without prior approval is not permitted. This always requires a positive advice from the Global Mobility Advisor(s).
The Netherlands has concluded a taxtreaty with both Germany and Belgium. This stipulates which country may levy income tax on your income and assets. In principle, your income tax is a private matter, but as an employer we need to know whether we have to pay wage tax for you.
If you do not work 100% from home or do not work 100% in the Netherlands, in many situations a so-called ‘salary split’ will apply to your income. This means that for the income on the hours actually worked in the Netherlands, you will have to pay income tax in the Netherlands. For the income on the hours actually worked in Germany or Belgium, income tax will be due there.
As it is not possible for us to apply a salary split, we deduct payroll taxes in the Netherlands on your entire salary and pay them on your behalf in the Netherlands.
In your income tax return in both countries, you ultimately fill in which income should be taxable in which country, thus avoiding double taxation. In practice, this often means that you will then get a refund from the Dutch Tax Administration, for example, if wage taxes have been paid on your behalf, and you will still have to pay some tax back in your country of residence.
Please note that the above is only a general explanation and this will vary from situation to situation. In addition, an exception article may apply to professors or teachers, for example, and then the above will not apply in some cases.
You will always receive personalised advice from the Global Mobility Advisor(s), provided you complete the ‘Tax and Social Security Assessment’ form. Furthermore, if you have any questions, you can always contact the Global Mobility Advisor(s).
Questions about cross-border work?
Between the member states of the European Union, there is a treaty on the coordination of social security. This ensures that only one social security system always applies. Which social security system this is, is determined by various rules.
The basic principle is that you are covered by the social security system of the country where you work. There are some exceptions to this when you are posted by your employer to another country or when you work in two or more member states at the same time. For these exceptions,the percentage you work in another country on an annual basis (your work pattern) is very important.
Since July 2023, several European Union member states (including the Netherlands, Germany and Belgium) have agreed that working from home will not always result in changes to social security legislation.
In most situations, it will be possible to apply for an A1 certificate or Certificate of Coverage from the Dutch social security agency, the Sociale Verzekeringsbank. Such a certificate confirms which social security legislation applies to your situation.
You will always receive personalised advice from the Global Mobility Advisor(s), provided you complete the Tax and Social Security Assessment form. This will also indicate whether and how an A1 certificate or Certificate of Coverage can be requested for your situation. Furthermore, if you have any questions, you can always contact the Global Mobility Advisor(s).