183-day rule

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


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

Business premises in the Netherlands

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