The tax treaty between the Netherlands and Germany is being amended so that cross-border workers can work from home for a maximum of 34 days per year without having to pay tax on their income in both countries. This agreement was reached today by both countries.
This is a first step toward improving the possibilities for cross-border workers to work from home. Since there is a maximum of 34 days per year, not all cross-border workers will benefit from the new remote work arrangement. Therefore, the Netherlands and Germany have agreed to continue discussions on this matter.
Declaration of intent
Not all cross-border workers benefit from the new remote work arrangement. For example, people who have an employer in Germany and regularly work from home one or two days a week. The Netherlands also wants to find a solution for them. That’s why a declaration of intent has been signed with Germany to continue discussions in the future about a remote work arrangement that allows for more than 34 workdays per calendar year. In doing so, both countries aim, where possible, to provide greater clarity for employers regarding the tax implications of remote work by cross-border workers.
Next steps
Before the amendment to the tax treaty takes effect, it will first be submitted to the Council of State and then sent to Parliament for approval. The German Parliament must also approve the amendment.
If you have any questions about this change or other inquiries, feel free to contact us.
