Choice for cross-border workers in the 2020 income tax return

Choice for cross-border workers in the 2020 income tax return

29 april, 2021

It’s March and that means it’s time to file the 2020 income tax return. For cross-border workers, this year’s income tax return differs from previous years. If you work in the Netherlands and in Germany or Belgium, it is important to choose the work or travel pattern that needs to be included in your income tax return.

In 2020, coronavirus measures such as closed borders and the government’s request to work from home significantly affected many cross-border workers’ work patterns. Cross-border workers can now choose which day-based fraction they wish to apply in their 2020 income tax return. This is based on the bilateral agreements between both the Netherlands and Germany and the Netherlands and Belgium for 2020. Workers can include one of these travel and work patterns in their 2020 income tax return:

  • the travel and work pattern based on actual working days in the countries concerned; or
  • the travel and work pattern based on the hypothetical situation that the travel/work pattern is the same as in 2019.

 

These two scenarios can produce significant differences in the overall tax burden for 2020. To make an informed choice, we recommend that you calculate both scenarios and decide based on the results. We are here to assist if you require any help.

More information

For questions about choosing your optimal travel pattern, contact our Employment Taxes & Global Mobility team. We are always happy to help.



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