Wage tax for Maastricht University employees

• Living and working in the Netherlands
  If you live and work in the Netherlands, wage tax is paid in the Netherlands.

  
   

• Living abroad, working fully in the Netherlands
  If you live outside the Netherlands but perform all your UM work in the Netherlands, you are subject to Dutch wage tax.
   
• Living abroad, working partly in the Netherlands and partly outside
  If you split your work between the Netherlands and your home country (including working from home), the situation depends on the tax treaty between the Netherlands and your country of residence. In most cases, Dutch wage tax still applies to your whole salary.
   
• Living in Belgium with teaching duties
  If you live in Belgium and your UM job includes teaching, a special article can apply. For the first two years of your employment, you pay wage tax in Belgium, even if your work is done at UM in the Netherlands. This also applies if you move to Belgium during the first two years of your UM contract.
   
• Living abroad, working fully outside the Netherlands
  If you perform all your UM work abroad, your wage tax situation must be analysed. In many cases, Dutch wage tax still applies, but this depends on international tax treaties.

The Netherlands has signed agreements with many countries to prevent double taxation (paying tax in two countries on the same income). These treaties define in which country your salary is taxable. If you live abroad, your personal situation must be checked against the relevant treaty. In certain situations, a difference of interpretation can exist between the Netherlands and the other country. This can, in rare situations, lead to temporary double taxation.

Social security contributions are separate from wage tax. They cover benefits such as health insurance, pensions, and unemployment support. Where you are socially insured depends on where you live and work, and sometimes on special agreements between countries. It is possible to be taxed in the Netherlands but insured elsewhere, or vice versa.

If you are recruited from abroad as a highly skilled worker, you may be eligible for the Expat Scheme.  This allows UM to pay up to 30% of your gross salary tax-free as a compensation for extra costs of working abroad. Further information on this subject can be found here.

Please note: If you are exempt from paying Dutch wage tax, the Expat Scheme has only a limited effect on your net salary.

Wage tax is normally a prepayment of income tax. In some cases, you may be required to file a Dutch income tax return. For example, in the year you arrive or leave the Netherlands, if the tax office asks you to do so in a letter, or if you have income outside UM. Filing is usually done in March or April of the following year.

• No need to arrange monthly tax payments yourself - UM withholds wage tax from your salary.
• Check if you need to file a Dutch annual tax return - this depends on your situation.
• If you live abroad, review the applicable tax treaty to see whether Dutch wage tax applies to your income.
• For official information, contact the Dutch Tax Office (Belastingdienst)