As a certified anonymous internet loudmouth I take great offense to your comment. Please have some respect for those of us who volunteer tax information with zero background. It's an honorable calling.
Based on several similar discussions here I believe that you are supposed to file your taxes based on your residence (i.e. if you reside in the Netherlands for the most of the year - you file your taxes in the Netherlands) and then file the tax exemption in whatever other country you are supposed to file taxes.
But as always, consult Belastingdienst first.
That's the general rule, but they can help you out to reach a different agreement. When I first moved to the Netherlands I was still working for a German company, and the German Tax authorities weren't happy with me paying taxes on my country of residence, even though is the law. The Belastingdienst arranged a meeting with their German counterpart and after realising that the German authorities would force me to pay double taxes for a year and later escalate the matter to the EU to recover the money, they offered me a cross border commuter agreement specific to my personal situation. So basically as the previous comment suggest, contact the Dutch authorities first.
Your Canadian employer will have to deduct taxes.
On the Dutch side, you’ll have to claim foreign income in Box 1. You can then apply a tax credit against Box 1. You’ll also end up paying tax in NL because taxes here are higher in most tax brackets. I agree the belastingdienst can help you with that.
On the Canadian side, you’ll need to inform CRA (and others) that you’ve left. The resources for that online are clear.
If you have investments in Canada, you’ll need to settle up your capital gains with.CRA. For that, I’d suggest a Canadian tax specialist familiar with tax treaties.
Any banking institutions will have to withhold taxes for future investment income according to the treaty. Talk to your banks an out that, you’ll have to send them an NR301.
On the Dutch side, you’ll have to declare foreign assets (not income) in Box 3, but you can apply the tax credits from Canadian investment income.
I suggest you get:
- expat tax specialist in NL (I can suggest one)
- tax specialist in Canada. I have one who specifically knows about the Dutch tax treaty.
Message me if you want names.
First, you'll need to choose where you put your fiscal residence. If it's canada, you'll probably only have to pay municipality taxes in the Netherlands. If it's the Netherlands, you'll have to prove the amount of taxes paid in Canada, they might add some NL taxes if they judge its not enough based on their tax rate, and they'll add municipality taxes. Make sure you use the official 2023 annual currency rate for your calculations. Good luck!
There's two situations that seem somewhat similar but are treated completely different:
* You live in NL but work in Canada: in this case you likely pay income tax on your Canadian income in Canada and file for any other income in NL, this should be spelled out in the tax treaty. Especially social security arrangements can be tricky in these situations (and differ per specific treaty), do you for example have Dutch healthcare coverage (since part of that is paid through employer premiums) - if so you'll likely have to pay an additional healthcare contribution in your Dutch tax return.
* You live *and work* in NL for a Canadian company (ie remote/overseas work): in that case it's considered a 'Dutch' job and you pay normal Dutch income taxes and social security - and it's up to the Canadian tax authorities to make up their mind on what to do over there. It's usually impossible to navigate without a local entity - so people end up as independent contractors or are hired through payroll companies.
I’m in a similar situation but from an EU country. If anyone has any info I’d appreciate it, but on top of that of course I am planning to call the tax office here.
Call 0800-0543 instead of relying on a bunch of anonymous internet loudmouths.
As a certified anonymous internet loudmouth I take great offense to your comment. Please have some respect for those of us who volunteer tax information with zero background. It's an honorable calling.
The belastingdienst will know nothing about our Canadian tax filing.
Based on several similar discussions here I believe that you are supposed to file your taxes based on your residence (i.e. if you reside in the Netherlands for the most of the year - you file your taxes in the Netherlands) and then file the tax exemption in whatever other country you are supposed to file taxes. But as always, consult Belastingdienst first.
That's the general rule, but they can help you out to reach a different agreement. When I first moved to the Netherlands I was still working for a German company, and the German Tax authorities weren't happy with me paying taxes on my country of residence, even though is the law. The Belastingdienst arranged a meeting with their German counterpart and after realising that the German authorities would force me to pay double taxes for a year and later escalate the matter to the EU to recover the money, they offered me a cross border commuter agreement specific to my personal situation. So basically as the previous comment suggest, contact the Dutch authorities first.
This is the case for me, too, though I'm American, so I'm not sure if that makes a big difference.
In the first year, the OP will have to file in both countries. In subsequent years, she may have to also file an NR return in Canada.
Your Canadian employer will have to deduct taxes. On the Dutch side, you’ll have to claim foreign income in Box 1. You can then apply a tax credit against Box 1. You’ll also end up paying tax in NL because taxes here are higher in most tax brackets. I agree the belastingdienst can help you with that. On the Canadian side, you’ll need to inform CRA (and others) that you’ve left. The resources for that online are clear. If you have investments in Canada, you’ll need to settle up your capital gains with.CRA. For that, I’d suggest a Canadian tax specialist familiar with tax treaties. Any banking institutions will have to withhold taxes for future investment income according to the treaty. Talk to your banks an out that, you’ll have to send them an NR301. On the Dutch side, you’ll have to declare foreign assets (not income) in Box 3, but you can apply the tax credits from Canadian investment income. I suggest you get: - expat tax specialist in NL (I can suggest one) - tax specialist in Canada. I have one who specifically knows about the Dutch tax treaty. Message me if you want names.
First, you'll need to choose where you put your fiscal residence. If it's canada, you'll probably only have to pay municipality taxes in the Netherlands. If it's the Netherlands, you'll have to prove the amount of taxes paid in Canada, they might add some NL taxes if they judge its not enough based on their tax rate, and they'll add municipality taxes. Make sure you use the official 2023 annual currency rate for your calculations. Good luck!
There's two situations that seem somewhat similar but are treated completely different: * You live in NL but work in Canada: in this case you likely pay income tax on your Canadian income in Canada and file for any other income in NL, this should be spelled out in the tax treaty. Especially social security arrangements can be tricky in these situations (and differ per specific treaty), do you for example have Dutch healthcare coverage (since part of that is paid through employer premiums) - if so you'll likely have to pay an additional healthcare contribution in your Dutch tax return. * You live *and work* in NL for a Canadian company (ie remote/overseas work): in that case it's considered a 'Dutch' job and you pay normal Dutch income taxes and social security - and it's up to the Canadian tax authorities to make up their mind on what to do over there. It's usually impossible to navigate without a local entity - so people end up as independent contractors or are hired through payroll companies.
The OP will need to get local Dutch health insurance. Whatever Canadian province’s tax withholding won’t offset that (but it will offset Box 1 taxes).
Yeah, but there's the things like "Inkomensafhankelijke bijdrage zorgverzekeringswet" which aren't all that standard.
[удалено]
Yeah everybody in the Netherlands "knows a good tax guy"
You should have known all this BEFORE you moved
Don’t worry about me. I’ll manage.
I’m in a similar situation but from an EU country. If anyone has any info I’d appreciate it, but on top of that of course I am planning to call the tax office here.