183-day rule

If a Dutch company employs an employee who lives in the Netherlands in Germany, the salary is taxable in Germany. That is the main rule. However, it may be that the employee’s tax liability does not shift to Germany. This is the case, for example, if the employee works less than 183 days in a period of 12 months in Germany. However, if he works more than 183 days within a period of 12 months in Germany, then the tax liability shifts to Germany


An employee works in Germany for five months from 01 August 2016 and works 100 days in Germany during this period. In 2017, the employee works the first four months in Germany with the number of 88 working days. Since in this case he has worked 188 days in Germany in the period of 12 months, the tax liability is shifted to Germany.

Business premises in Germany

Taxation shifts to Germany from the first day of work if the employer has a permanent premises in Germany and the work is performed for a formal or material employer in Germany. Therefore, temporary workers who are hired out to Germany by a Dutch temporary employment agency are taxed in Germany from the first day.