AMSTERDAM / BERLIN – A joint KPMG Global Mobility Flash Alert released on 10 March 2026 confirms that the amending protocol to the Netherlands–Germany double-tax treaty is now in force and applies retroactively from 1 January 2026. Under the new article 13(5-bis), if a cross-border employee resident in one state works from home in that state for no more than 34 days per calendar year, the remuneration for those days remains taxable exclusively in the employer’s state. A qualifying day requires at least 30 minutes of work performed from the home location. The rule applies to both public- and private-sector staff. For German employers with sizeable Dutch commuter populations—particularly around North Rhine-Westphalia—this removes the onerous split-payroll calculations that previously arose when staff worked from home sporadically. Payroll managers must, however, implement day-count tracking tools to ensure the 34-day ceiling is not breached; excess days revert to physical-location taxation rules. The protocol also includes a declaration of intent to revisit the threshold after one year, hinting at a potential increase to 60 days if compliance proves manageable. Mobility specialists should update assignment letters, HRIS codes and Posted-Worker notifications to reflect the new sourcing approach. Employees must retain evidence—such as VPN login logs—to substantiate their day counts in the event of a German or Dutch audit. Finally, the Flash Alert advises corporate mobility programmes to communicate the changes promptly: errors discovered during the 2026 German payroll tax audit cycle could attract interest and penalties back-dated to 1 January.
Source: KPMG GMS Flash Alert 2026-064
