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Where Taxpayers and Advisers Meet

Setting up Netherlands branch office for UK LTD

illusion
Posts: 4
Joined: Wed Sep 28, 2016 4:53 pm

Setting up Netherlands branch office for UK LTD

Postby illusion » Fri Aug 03, 2018 12:22 pm

Hi,

I'm an IT consultant operating via UK LTD company and I am currently resident in the UK. I mostly work for single clients at a time but work from home with very occassional trips to the clients office. I am moving permanently to the Netherlands in a few months time and I will continue working for my current client remotely.

I am considering setting up a branch office in the Netherlands because I'll need to pay local wage tax there as I'll be considered a resident.

I am trying to get my head around the tax implications in terms of CT, VAT etc. My simplified view is that since I am doing the work in the Netherlands, I'll be liable for all taxes there. My UK LTD is therefore just being used as a vehicle to have a contract with a client, do the invoicing, and transfer all the turnover to the Dutch branch to ultimately be pais as salary. In the Netherlands I'll then be liable for VAT and wage tax etc. From my UK LTD I will not be liable for any taxes as everything is salary expense via the NL branch.

Am I thinking along the correct lines here?

Regards,

Dan

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Setting up Netherlands branch office for UK LTD

Postby AmanSood » Thu Aug 16, 2018 1:11 pm

Hi,

I'm an IT consultant operating via UK LTD company and I am currently resident in the UK. I mostly work for single clients at a time but work from home with very occassional trips to the clients office. I am moving permanently to the Netherlands in a few months time and I will continue working for my current client remotely.

I am considering setting up a branch office in the Netherlands because I'll need to pay local wage tax there as I'll be considered a resident.

I am trying to get my head around the tax implications in terms of CT, VAT etc. My simplified view is that since I am doing the work in the Netherlands, I'll be liable for all taxes there. My UK LTD is therefore just being used as a vehicle to have a contract with a client, do the invoicing, and transfer all the turnover to the Dutch branch to ultimately be pais as salary. In the Netherlands I'll then be liable for VAT and wage tax etc. From my UK LTD I will not be liable for any taxes as everything is salary expense via the NL branch.

Am I thinking along the correct lines here?

Regards,

Dan


Hi Dan, you are broadly on the right lines assuming that you don't spend any time working in the UK. you still have to complete the UK returns/accounts filings in the UK as your company is incorporated in the UK and have the right agreements in place between the UK entity and Dutch branch. If you are looking for a Dutch tax advisor to support you with the Dutch filings then do reach out and i'll be happy to introduce you to a good advisor in my network.

Thanks

Aman
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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