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Frank has a Master in Tax Economics from Erasmus University of Rotterdam, and has been tax adviser since 1989. Having started a career with big eight companies, he was a partner in a small The Hague tax advisory firm for six years. This firm merged with Deloitte’s, but after two years Frank continued his existing practice independently. This practice involved a wide variety of clients, from quoted real estate investment companies to elderly people's income tax returns; assistance with Dutch tax audits to expansion of domestic business abroad; setting up Dutch branches of foreign businesses to full compliance on behalf of expatriate employees in the Netherlands. Having been an editor of 'Expat News' until it went off the air, Frank has provided solutions for many out-of-the-ordinary situations and often shortcut bureaucracy for numerous cross-border labour situations.
In 2013 Frank joined the Expatise Faculty and teaches International Tax Law.
Generally, any employee with a local employment contract is considered a taxpayer over the income from that employment (wages) in the country of his/her residence (resident taxpayer) and must, in principle, pay taxes and social security contributions over those wages.
In many cases, the employer with whom the employment contract was concluded (the formal employer) will be obligated to withhold these taxes and contributions from the wage in the payroll: the employer then becomes a withholding agent for payroll taxes. This means that this person or organisation must withhold an advance on taxes and contributions from the wages and pay this to the Tax Administration. Once the fiscal year has ended, the advance payment will be adjusted with any payable taxes by the employee over their income.
For any domestic employment relation, this is a clear system. However, for cross-border employment activities, matters become more complicated. After all, multiple countries may be involved when work is being performed beyond national borders, each with its own tax and social security schemes it wants to utilize by levying taxes and contributions over wages connected to work carried out in that country. There is a risk of double taxation and withholding of contributions, and the risk that these payroll taxes are paid in the wrong country.
The key to determining where employment income will be subject to taxation is the concept of Place of Fiscal Residence in combination with the concept of Employer.
However, it is important to note that each country has its own interpretation of Fiscal Residence and Employer. Moreover, within that national framework, there are several levels on which these concepts play a role, each with its own criteria for determining Residence and Employership.
In Part 1 of this Learning Event (Tuesday, September 5, 10:00-12:30), Frank de Bats will take you through these concepts from a Dutch point of view.
Interested in attending this event?
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Meet the lecturers
International Wage and Income Tax