International growth

A growing number of entrepreneurs are choosing to expand abroad. It is especially easy to explore new markets within the EU. But how do you structure your international growth? Can you do this from your Dutch business or is it better to open a foreign branch? Do you plan to employ personnel in another country? What are your obligations in terms of VAT? And what about other taxation?

Each choice you make brings with it advantages, disadvantages and sometimes obligations. We list and discuss a number of important steps for you. Baker Tilly has all the in-house expertise required to assist and support you in your international growth ambitions. Our advisors would be happy to get you started!

First steps

Expanding your business across the border. Whether you do so in small steps or giant leaps, thorough preparation is essential. If you have plans for international growth, what do you first need to consider with respect to distribution, taxation and labour law?

Distribution models

Drop-shipping, direct delivery or sale via a platform: Which distribution model best suits your international growth ambitions?

Labour law and employment abroad

Do your personnel work in another country, either temporarily or structurally? If so, make sure you consider important legal aspects such as the applicable labour law, employment conditions, CLAs, pensions and reporting obligations.

Legal form and permanent establishment

Expanding abroad: How do you go about this? Is a permanent establishment present? When may a local legal form be preferable?

Determining your tax position

To know what you face in terms of taxation, you first need to determine your tax position. This can be complicated in cases of international growth, but it does offer insights in advance regarding what your obligations are and where potential opportunities lie. This provides you with a clear picture of where you need to pay taxes.

Wage tax

If you have personnel who work in another country, make sure you consider the implications for wage tax. What do you need to bear in mind with respect to international growth and personnel working abroad?

VAT and growth

International growth and VAT go hand in hand, but your position is not always completely clear. What should you bear in mind? When do you charge foreign VAT? And what about VAT registrations?

Residency and income tax

When you do business in another country, you want to know your personal tax position. What are the rules for personal income taxation, for example, if you have a general partnership or sole proprietorship? And how is double taxation prevented?

Position of the director / major shareholder

Remuneration for directors for work performed in another country is subject to complicated tax rules. Which country may tax the income? What about the customary wages for a director / major shareholder? And how do you prevent double taxation?

International agreements and obligations

It will come as no surprise that international growth involves more than just Dutch rules and regulations. But how do you make sure you have the correct registration and documentation and pay tax in the right country? And how can double taxation be prevented?

Preventing double taxation

When you do business in different countries, multiple countries may want to tax the same income. Tax treaties can provide a solution. But how do tax treaties work and how do they help to prevent double taxation?

Social security

If your employees work in another country, you need to be completely clear about the social security position, including for temporary work. What are your obligations and what should you bear in mind?

Customs formalities

If you sell goods that are shipped to a destination outside the EU, you are exporting goods. Do you know what additional administration, documentation and permits you need to consider in this case?

Transfer Pricing

When expanding abroad or scaling up your operations in another country, make sure you are completely clear about your transfer pricing position! Which obligations might apply to your company?