Tax agreements with the Netherlands

The tax treaty between the United States and the Netherlands mostly follows the OECD Model Tax Treaty and is therefore fairly straightforward for individual taxpayers. The treaty may help to determine whether certain income is taxable in the Netherlands or not. Generally, tax treaty provisions do not reduce the U.S. taxes of Americans living abroad, as they are subject to U.S. income taxation on their worldwide income based on the U.S. tax code. Unlike most other countries, the U.S. tax treaty provisions do not automatically overrule U.S. tax provisions that are applicable to U.S. citizens living abroad. Furthermore, many of the individual states of the United States tax the income of their residents. The rules that determine whether you are a resident of a state for tax purposes (for example because you have a property in that state or you spent a number of days in that state for work), vary by state.