I am a Dutch citizen moving to Massachusetts (permanently), and was wondering if someone could give me their point of view on the following situation:
I am a partner in a small Dutch company. The work I continue to do for the company can all be done from a remote location (Massachusetts in my case).
How can I prevent from being taxed twice (The Netherlands and the U.S.) on the income I get from the Dutch company?
I know there is a tax treaty between The Netherlands and the U.S. , and the U.S. has a foreign tax credit option but I have a hard time figuring all this out.
Some say that because the company is registered in The Netherlands I have to pay taxes over that income there, and then apply for a foreign tax credit in the U.S. for that same income? Will I be eligible for a foreign tax credit in my situation?
Ofcourse the better scenario would be that I don't have to pay taxes in The Netherlands over that income. Unfortunately, from what I understood this is likely not to be the case because I am a partner in a company which is registered in The Netherlands.
Does anyone have experience with similar cases?
I am a partner in a small Dutch company. The work I continue to do for the company can all be done from a remote location (Massachusetts in my case).
How can I prevent from being taxed twice (The Netherlands and the U.S.) on the income I get from the Dutch company?
I know there is a tax treaty between The Netherlands and the U.S. , and the U.S. has a foreign tax credit option but I have a hard time figuring all this out.
Some say that because the company is registered in The Netherlands I have to pay taxes over that income there, and then apply for a foreign tax credit in the U.S. for that same income? Will I be eligible for a foreign tax credit in my situation?
Ofcourse the better scenario would be that I don't have to pay taxes in The Netherlands over that income. Unfortunately, from what I understood this is likely not to be the case because I am a partner in a company which is registered in The Netherlands.
Does anyone have experience with similar cases?