Every year, the Caribbean territories of the Kingdom of the Netherlands welcome thousands of foreign employees, who visit here to work in temporary jobs, for example in connection with the construction or renovation of a hotel, maintenance work, or entertainment.
Cross-border labor may give rise to an obligation to pay wage tax and/or personal income tax. Similarly, social security contributions may be payable also. In many cases the risk exists of double taxation, if the worker’s country of residence also claims a right of taxation.
Cross-border relocations give rise to numerous concerns. Besides issues such as residency and work permits, it is important also not to overlook the tax implications. This is even more the case for sole proprietors. Emigration may result in a final tax assessment on the hidden reserves and goodwill in your enterprise at that moment. In some situations, however, it is possible to avoid this final personal income tax assessment.