Client operates through uK ltd company. he has now been offered an 8 week contract in Holland.
Does he need to register with Dutch tax office and can people work in Holland though uk ltd Companies.?
Ideally he would like to continue to bill his uk contractors agency.
Many thanks for any advice or comments.
Replies (3)
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Yes
Of course a UK company can carry out work in Holland. I'm not sure I totally understand the reference to "UK contractors agency", perhaps you can clarify.
In order to prevent the company or the employee being subject to tax both in the UK and the Netherlands, the two countries have signed a double tax agreement specifying what is taxed where. UK company should not normally need to register its activities in the Netherlands unless it creates a "permanent establishment" - this will be the case where the UK company negotiates or concludes contracts in the Netherlands; or if it has a fixed place of business, such as an office in the Netherlands. You don't say what kind of work your client does, and how the activities will be carried out in the Netherlands, so it's impossible for me to make a judgement on whether a permanent establishment is created.
A UK director/employee of the UK company will not be subject to Dutch payroll taxes unless either the UK company creates a permanent establishment in Holland (per above) or he/she spends more than 183 days in a tax year working in the Netherlands.
You should consider the VAT position of your activities, as you might need to register for VAT in the Netherlands. Again it's impossible to comment given the limited information in your question.
Working in Holland
I have the same question as above, pretty much the same situation and am seeking answers. Thanks