Cross-border work

Employees working and/or living in a foreign country may be subject to other tax and social security regulations than those working and living in the Netherlands. In addition, new AUAS employees from a foreign country will in certain cases be required to obtain a residence permit. Below is a short overview of the possible consequences when employees work and/or live in a foreign country.

Taxation

Based on the country in which an employee is deemed to reside for tax purposes and the applicable tax treaty between this country and the Netherlands, the AUAS will determine in which country the employee’s salary is subject to tax. If the AUAS concludes that the employee’s salary is subject to tax in a foreign country, (I) the AUAS will be required to withhold the ‘foreign’ payroll tax from the employee’s salary and pay this tax, or (II) the employee will be personally responsible for paying this tax (by filing an income tax return). In the case of situation (I), the AUAS will have to use the services of a local payroll firm to effect this. Please note that this means that extra costs and administrative fees will be incurred.

Social security

In addition, the AUAS will assess whether or not employees are subject to the Dutch social security legislation. As a rule, employees are insured for social security benefits in the country where they work. However, there are exceptions to this rule, such as when employees work in multiple countries or are temporarily seconded to another country. This is governed by EU Regulation 883/2004 or by the social security treaties between the relevant countries. Based on this, the AUAS will determine in which country the employee must be deemed to be an insured person for social security purposes, which is the country in which the employee must take out health care insurance. If it is determined that the employee is an insured person in a foreign country, the AUAS will likewise have to use the services of a local payroll firm to effect the relevant social security contributions. Please note that this means that extra costs and administrative fees will be incurred.

To assess the above-mentioned tax and social security matters, the Administration Centre’s International Payroll Team requires certain data. You can gather those data through the following form.

The employee must complete the form and send it to HR. HR will then send the form to psa-ga@uva.nl.

If you have any questions about residence permits or work permits, please send an email to sio-ac@uva.nl.

Published by  Administration Centre 25 April 2022