Before you decide to allow your employee to work partly from home in their country of residence, we recommend that you do the following:

• If this results in your employee being covered by social insurance in their country of residence, based on the main regulation, check whether this is desirable, and whether it may be worthwhile to maintain social insurance for this employee in the country in which you, the employer, are based, as per the exception (insofar as you meet the aforementioned conditions, of course);
• Consider the fiscal repercussions. The employee will partially be taxed in the country of residence, which may result in a change in the net wage;
• Check if there are any (mandatory) provisions within employment law for the country of residence that apply (and that may "overrule" provisions of the employment contract).

We would like to reiterate that the special Covid measures regarding taxes have long since expired. When dealing with employees who pay taxes in 2 or more countries, they will have to declare their worldwide income in their country of residence and also claim an exemption from taxes for the portion of their income that has already been taxed abroad. In this context, it is important:

1. that the employee can prove that they have actually spent time working abroad, and
2. that the wage taxed abroad corresponds with this.

If this cannot (sufficiently) be proven, there is a risk that the tax authorities of the country of residence will refuse to exempt the wage earned and taxed abroad from taxes, which will have repercussions (including double taxation). We therefore advise employers and their employees to provide sufficient substantiation for every employment period abroad (in concrete terms: keep a daily calendar containing the associated evidence).

If the working habits of your employees have changed permanently compared to before the Covid pandemic, we recommend that you map out the following (or commission such work) once more:

1. In which countries your employees are covered by social insurance
2. In which country or countries you are required to withhold wage tax/payroll tax for your employees

If you fail to do so and the payroll administration continues to make payments in the wrong country/countries, you risk administrative problems and fines.

We can imagine that it has become harder for you to see the wood for the trees. Main regulations, exemptions to main regulations, and on top of that, ensuring that social insurance contributions and tax payments are processed correctly in the payroll... If you need help, we would be happy to identify and list the relevant situations arising within your personnel file, after which we will ensure that both you and your employees have a better understanding of what is happening on the payslips.

• De loonstrook in Nederland, België en Duitsland (30 november 2023)
  (Payslips in the Netherlands, Belgium and Germany)
  Under the guidance of Grensoverschrijdend Werken and in cooperation with KPP Steuerberatungsgesellschaft, we present a seminar on payslips in the Netherlands, Belgium and Germany.
  This seminar is only taught in Dutch. 
  
  The most recent session of this seminar (1 June 2023) was rated Excellent by NIRPA (the Dutch Institute of Register Payroll Accounting). Read the full evaluation performed by NIRPA here (available only in Dutch)
  
  
• Working in multiple countries (available only in Dutch)
  During one half-day of your choice in Kontich (Belgium), Voorburg (the Netherlands) or at your office, one of our advisors will explain the most important tax, social insurance and employment law repercussions of the cross-border situations that occur in your organisation. If you are interested in this workshop in the English language, please let us know here.