Context
As you know, a new Belgium – the Netherlands Double Tax Treaty is applicable as from 1 January 2003 which no longer provides for specific rules for frontier workers. As a result, many ex-Belgian frontier workers working in the ex-Dutch frontier zone – who were thus previously taxed in Belgium under the frontier worker system – became liable to Dutch income tax on their employment income as of 1 January 2003.

In addition you may be aware that foreign nationals working in the Netherlands may -under certain conditions- be eligible for the Dutch expatriate tax regime (so-called “30%-regeling”). Eligibility for this favourable regime is not only conditional on fulfilling the specific requirements but must also be timely filed with the Dutch tax authorities by the end of the 4th month following the starting date of the employment in the Netherlands. Late filing results in the expatriate tax regime only becoming applicable as of the month following the effective filing date.

News
In this respect it may be valuable to note that ex-Belgian frontier workers are not excluded from the benefit of this favourable regime, though its application remains subject to the usual conditions. In addition, on 24 April 2003, the Dutch tax authorities* decided that for ex-Belgian frontier workers who became liable to Dutch income tax on their employment income due to the entry into force of the new tax treaty, the filing procedure could be considered as timely up to 30 June 2003 and that the expatriate regime, if applicable, would be retroactive to 1 January 2003.

(*) http://news.hrservices.be?lk200305061