Samoerai
Well-Known Member
- Joined
- Jul 9, 2021
- Messages
- 1,428
All true, but the tax authority (Belastingdienst) in The Netherlands doesn't know he is living in Indonesia as a citizen on a Kitap. As far as they (gemeente, belastingdienst en ziektenkostenverzekeraar) know, he is on holiday abroad.Well, there is a tax treaty between NL and RI. It clearly states what income is taxed where etc.
But this is important; it depends of course in which country you are tax resident. So where you are fiscally domiciled or established. You can’t have your main residence in multiple countries.
In most European countries the tax authorities determine your tax residence based on your personal situation and that includes where you spend most of your time, where your partner and/or family live, where you work. Even if you own property or where you have your medical care. Whether your company is considered 'tax resident in the Netherlands' is obviously determined by the place where management takes place.
If one has a permanent residence permit (ITAP), stays more than 183 days per year in Indonesia, and is married to a WNI whose KTP is in RI, I don’t see any tax authority considering the Netherlands as fiscal residence. Even if you spend 4 months per year there to avoid having to deregister from the civil registry and to stay (medically) insured.
When he send in a M-form (migratieformulier), then the tax authority will make a decision. Same applies to the 'gemeente'. He needs to to tell them he will leave the country, meaning immigrate. Then, the gemeente will delete him from the 'basisregistratie personen BPR'.
For now, the Belastingdienst will send him every year a notice to report his income. And let him pay tax in The Netherlands. How much? As zzp-er he has a lot of tax deductions (operational costs, startersaftrek, zelfstandigenaftrek). Likely, his tax is less than 30% of his income.
Then, if he reports his income also in Indonesia he has to pay additional tax; even with the tax paid in The Netherlands as credit.
Ya Allah!
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