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If a Dutchman emigrates to the United States of America, he cannot invoke the 183-day regime with respect to the wages he received as a resident of the Netherlands.
In 2018, a man lives and works in the Netherlands from January 1 to June 17. During this period, he receives a salary of €26,118. On June 17, 2018, he emigrated from the Netherlands to the United States of America (US). In the period from June 17, 2018 to December 31, 2018, he receives €67,436 in salary from an American company. The Dutch tax authorities want to deduct €26,118 from the salary. But the man derives from the tax treaty between the Netherlands and the United States that the Netherlands does not have the right to tax. His justification is that he worked and lived in the United States for more than 182 days. He also claims to have declared all of his worldwide income in the United States.
Dutch salaries received as a resident of the Netherlands
However, the Gelderland District Court rules that the 183-day rule applies to employees who receive income from one country while residing in another country at the time. The time at which an employee files their income tax return is therefore irrelevant. The man received a salary of €26,118 during a period when he resided in the Netherlands. It cannot therefore invoke the treaty. Incidentally, the man does not make it plausible that the US tax authorities levied taxes on Dutch income. He also argues that the tax and customs administration wrongly refused the deduction of medical expenses. But he also does not make it plausible that he incurred these expenses before his emigration. The court declares the man’s appeal unfounded.
Deal: art. 16, second paragraph of the NL-US Treaty
Law: art. 2.1, first paragraph, part a And 7.8 Income Tax Act 2001
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