Temporary workers who live in our accommodation can make use of the ET arrangement (extraterritorial scheme).
The ET arrangement is a tax regulation that makes it possible to give employees who live abroad and work in the Netherlands temporarily a tax-free allowance for additional costs incurred because they work temporarily outside their country of origin.
The CAO for temporary workers states that an employment agency can make agreements with a temporary worker to exchange part of the wage for a reimbursement of ET costs (covenant between the tax authorities and the temporary employment sector).
Examples of ET costs are:
- Cost of living (because the prices in the Netherlands are higher than in the country of origin; think of meals, gas, light and water).
- Double accommodation costs, if the employee also keeps a house in the country of origin.
Within Charlie works, the ET arrangement is only used for double accommodation costs.