Does the employee have a foreign employer who is not a withholding agent in the Netherlands? Then he can apply the free space of the labor cost chart by himself.
A sailor from the Rhine was on the payroll of a Luxembourg company in 2013 and 2014. Hof den Bosch (NTFR 2021/1163) ruled that the Rhine navigator could not apply the exemption to the free space of a labor cost plan based on her wages calculated according to Dutch standards. The employer has not specified any bonuses and benefits in kind as the final tax component.
Special scheme for employees with a non-deductible employer
The Supreme Court disagrees with the court and invalidates the ruling. art. 3.84(2) of the Income Tax Act is included specifically to give employees who have a foreign employer who is not subject to withholding tax in the Netherlands an exemption equal to the percentage of free space. Therefore, it is not important whether or not the employer has specified allowances and benefits in kind as the final tax elements. In 2013 and 2014, Rhine seafarers were entitled to an equal free space exemption (1.5% in 2013 and 2014) from the wages they received from the Luxembourg Company.
See also: Supreme Court May 27, 2022, ECLI: NL: HR: 2022: 769, 21/01855
Law: art. 3.84 Paragraph 2 Income Tax Act 2001
source: Supreme Court May 27, 2022, ECLI: NL: HR: 2022: 697, 21/01854
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