Netherlands: Agreement with Belgium on permanent establishment implications of remote working
Permanent establishment implications of remote working under the Netherlands-Belgium income tax treaty
Permanent establishment implications of remote working
An agreement between the Netherlands and Belgium with respect to the permanent establishment implications of remote working under the Netherlands-Belgium income tax treaty was released on 8 December 2023.
The agreement addresses three scenarios:
- Occasional remote work
- Permanent remote work with the option of office work
- Mandatory permanent remote work
For employees who work from home sporadically (first scenario), the agreement states that this generally does not constitute a permanent establishment. For the second and third scenarios, the agreement provides guidelines for evaluating the situation.
The agreement also outlines its application for employees who spend 50% or less of their time working from home in their country of residence, or if the work involves preparatory or auxiliary activities.
Read a December 2023 report prepared by the KPMG member firm in the Netherlands
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