Guide to Global Payroll Management

Students, trainees, and grant recipients
A treaty country resident who is temporarily in the other treaty country primarily to study
at a university, college, or school, or to obtain training as a business apprentice, is exempt
from the other country's income tax on the following amounts:
*

amounts received from abroad for maintenance, education, or training,
and

income from personal services performed in the other country of not more
than $2,000 U.S. or the Dutch equivalent in each tax year.

The person is entitled to this exemption only for a period of time considered reasonable
or customarily required to complete the studies or training.
A treaty country resident who is temporarily in the other treaty country for up to three
years for the purpose of study, research, or training solely as a recipient of a grant, allowance, or award from a scientific, educational, religious, or charitable organization (or under a
treaty country's technical assistance program) is exempt from tax in the other country on:
*

the amount of the grant, allowance, or award, and

income each year of not more than $2,000 U.S. or the Dutch equivalent
for performing personal services in connection with, or incidental to, the
study, research, or training.

These exemptions do not apply if the resident claimed one of the exemptions described
above under "Professors, teachers, and researchers" during the immediately preceding
period [Art. 22].

Entertainers and athletes
Income earned by a public entertainer (such as a theater, motion picture, radio, or television entertainer, musician or athlete) from one treaty country for entertainment activities
in the other country is exempt from the other country's income tax if the income, including
reimbursed expenses, does not exceed $10,000 U.S. or the Dutch equivalent on January 1
of the tax year [Art. 18].

Corporate directors
Directors' fees and similar payments received by a treaty country resident for services as
a member of the board of directors of a company that is a resident of the other treaty country is subject to the other country's income tax. However, the individual may be subject to tax
in the treaty country where he/she resides to the extent the fees are derived from services
performed there [Art. 17].

Ship and aircraft employees
Compensation received by a treaty country resident from employment as a member of
the regular complement of a ship or aircraft operated in international traffic is exempt from
the other country's income tax [Art. 16].

Government compensation
Compensation, other than a pension, paid by a treaty country or its political subdivisions
or local authorities to a person for performing government service in the other treaty country
is exempt from the other country's income tax. The compensation is subject to tax in the
other country, however, if the person is a resident and a national of that country, or became

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Guide to Global Payroll Management - 2020

Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020

Guide to Global Payroll Management - 2020 - A-56

Guide to Global Payroll Management - 2020

Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020