What is the required taxation if a website is programmed in the Netherlands and the customer resided within the USA?

Asked by: Larry Roper

Does the Netherlands tax foreign income?

If you live abroad and have income from the Netherlands, in most cases you will have to pay income tax on it in the Netherlands. The Tax and Customs Administration classifies income (and tax deductions) in three boxes. You only have to declare income from the Netherlands in your tax return.

What is foreign withholding tax?

In most cases, a foreign national is subject to federal withholding tax on U.S. source income at a standard flat rate of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign national’s country of residence and the United States.

Do I need to pay tax in the Netherlands?

If you live in the Netherlands or receive income from the Netherlands, you will be subjected to pay income tax in the Netherlands. You pay tax in the Netherlands on your income, on your financial interests in a company and on your savings and investments. The Tax and Customs Administration collects income tax.

Is foreign income taxable in us?

In general, yes—Americans must pay U.S. taxes on foreign income. The U.S. is one of only two countries in the world where taxes are based on citizenship, not place of residency. If you’re considered a U.S. citizen or U.S. permanent resident, you pay income tax regardless where the income was earned.

Are you liable for tax in another country than the Netherlands?

Do you live in the Netherlands and do you have income from abroad? If so, you must declare your entire worldwide income in your tax return. In order to prevent you from paying income tax on the same income in several countries, you receive a deduction for the avoidance of double taxation in the Netherlands.

Are you still taxable in a country other than the Netherlands?

You live and work outside the Netherlands and you have a Dutch employer. The country where you live and work can almost always levy tax on your wages.

Who is exempt from US withholding tax?

Students, trainees, teachers, and researchers. Alien students, trainees, teachers, and researchers who perform dependent personal services (as employees) can also use Form 8233 to claim exemption from withholding of tax on compensation for services that is exempt from U.S. tax under a U.S. tax treaty.

How do I avoid withholding taxes?

Want to avoid the hassles of withholding tax altogether? Consider holding your U.S. stocks in a registered retirement savings plan, registered retirement income fund or other retirement account.