February 24, 2022
Netherlands publishes changed view on international allocation of severance payments
On February 4, the Netherlands published a new Decree regarding the international allocation of severance payments for regular employees. This Decree replaces the previous Decree dated April 23, 2015. Under the old Decree, the Netherlands in principle considered the last 12 months of employment as the basis for the international allocation of severance payments, in accordance with the OECD guidelines. However, it has since become apparent that a number of tax treaty partners of the Netherlands interpret the OECD-commentary differently. This has given rise to a (partial) revision of the old Decree.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
Full text of Tax Alert