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@mnkt3

Your personal income tax is not relevant here though it is covered by the same DTT.

Unless your compamy can argue that your function is nominal/ administative (ie they tell you what to do/ sign) the tiny company will have a permanent tax establishment in the NL and on top of personal income tax there will be corporate income tax consequences for the company.

Additionally if your other work (non-director part if any) constitutes a significant share of the company's activities then there is also a PE in NL which has to be taxed.

Now in practice this may he difficult to even derive the information, that is a qiestion to expensive consultants:)

    Hello,
Is there any particular restriction on remotely working in the Netherlands as a director or manager of a foreign country? Does it consider the same as an employee of a US-based company working in the Netherlands remotely?
I read one article mentioning that particular restriction, when a manager or director moves to the E.U., the company thereby establishes a corporate entity in the country where the person lives, applies for the specific restriction for a director or manager position according to European Union laws.

I live here with a freelance visa (zip), and my visa states I can work freely without work permits. I have constant freelance jobs from companies in the US, UK, and EU, so the salary as a company director is additional to my freelance jobs. Because of a treaty, my income tax for the salary is deducted in the country where the company resides, while I am reporting worldwide income, including the salary, to the Dutch Tax Authority and pay income tax for my freelance income.

The company is a tiny establishment owned by just a family. It is not considering opening a branch elsewhere, so I would like to know if I can be a director while living in the Netherlands.
   

    -@mnkt3

Hi and welcome to the Forum.

I'm assuming you actually mean a ZZP visa?  Whatever, I can't see it being a problem, the Dutch don't seem to have a problem with this kind of thing, you'll have to include any worldwide income to the Belastingdienst when you make your annual declaration and it will be taxed at the appropriate rate - they'll just want your money.

I don't think the Dutch would know about you being a director unless you tell them, or perhaps if this tiny establishment trades in the Netherlands when they may have to declare you as being a director (it happens with many Government contracts).  My advice would be to speak to a Dutch finance/tax advisor just to make sure you won't have to include any company profits in your annual declaration.

I hope this helps.

Cynic

Expat Team

@Max0910 Hi, that's what I read from the article. Hiring a consultant is one idea that came to my mind, though I wonder if paying the cost is worth it for the small establishment and myself. Thank you for your answer that clarified my point, and it is at least arguable somehow.

@Cynic

Hi, and thank you for your welcoming message.

The tax for the salary from the company will be withheld by the tax authorities in the country where the company resides so that the Belasstingdienst will not be able to tax the particular part of my income theoretically.

Following your advice, I will discuss this further with my accountant before proceeding. Thanks.