Normally, a cross-border employee’s salary is taxed in the country where their employer is established, except for the days on which the employee physically works outside that country.
The tax treaty between the Netherlands and Germany is being updated to allow cross-border workers to work from home for up to 34 days per year, while the salary for those days will still be fully taxed in the employer’s country.
Before this amendment can take effect, the parliaments of both the Netherlands and Germany must approve it. In addition, both countries have signed a declaration of intent to continue discussions on a work-from-home arrangement that would cover more than 34 days per year.
