New rules for cross-border work arrangements under the Netherlands-Germany tax treaty took effect on 1 January 2026. The Dutch Parliament gave silent approval on 20 November 2025 to the amendment protocol, which was originally agreed upon on 14 April 2025.1,2
For previous coverage on the update, see GMS Flash Alert 2025-180, Germany – Amending Protocol to Treaty with Netherlands Addresses Cross-Border Worker Issues (30 September 2025).
This development is relevant for global mobility programs, particularly those managing cross-border employees between the Netherlands and Germany. Specifically, if an employee works from home for up to 34 days per year, then the country where the employer is situated—not the country of the employee’s residence—has the taxing rights.
Previously, cross-border workers faced potential dual taxation when working remotely from a country different from their employer's location, as taxing rights generally followed the physical location of work performed. Existing treaty rules often led to split taxation, necessitating complex income declarations in both countries for employees exceeding minimal home working days.
In light of the changes, organisations might consider the following:
If assignees and/or their programme managers have any questions or concerns about the scope of the amended protocol, its potential application and impacts, they should consult with their qualified tax professional or a member of the GMS tax team with KPMG in Meijburg & Co in the Netherlands or KPMG in Germany (see the Contacts section).
1 Rijksoverheid (in Dutch) “Parliamentary letter on the amendment protocol to the tax treaty with Germany,” published on 20 October 2025.
2 Rijksoverheid (in Dutch) “The Netherlands amends tax treaty with Germany for cross-border workers,” published on 14 April 2025.
3 Ministry of Finance of North Rhine-Westphalia (in German) “Neue Homeoffice-Regelung für Grenzpendler seit 1. Januar in Kraft,” published on 5 January 2026.
This article is excerpted, with permission, from "Enhancing Remote Work Opportunities: Amendment to the Netherlands-Germany Tax Treaty” (15 December 2025), a publication of the KPMG International member firm in the Netherlands.
The information contained in this newsletter was submitted by the KPMG International member firm in the Netherlands.
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