30% ruling

The 30% ruling is an interesting feature for expat employees in the Netherlands. The Dutch government introduced the 30% ruling, also known as the 30% reimbursement ruling, to attract foreign specialists with specific expertise that is poor or not available in the Netherlands. However, there are strict requirements you should meet.

Benefits of the 30% ruling

The most important element of this ruling is a reduction of your taxable income.

The fiscal benefit is calculated based on the employees’ gross annual salary. From this total amount, 30% is free from income tax. When this ruling applies in your situation, only 70% of your income is used when determining the amount of income tax you are required to pay. Furthermore, except for pension premiums, all your bonuses, holiday allowance,

Requirements for the 30% ruling

Are you are eligible for the 30% ruling? Yes, but only if you meet all of the following conditions:

• You are in paid employment.
• You have a specific expertise that is not or hardly found on the Dutch labour market.
• You were recruited outside of the Netherlands.
• You are in possession of a valid decision.

Read the strict requirements for qualification on the website of the Belatingdienst.

The 30% ruling is coordinated and supervised by the Belastingdienst (Dutch tax office), and the employer must agree that the 30% ruling applies to the employee’s situation before you start the application procedure.

Duration of the 30% ruling

In January 2019, the duration of the 30% ruling reduced from eight to five years.

Apply for the 30% facility

Do you meet all conditions? Then apply, together with your employer, for permission to use the 30% facility on the website of the Belatingdienst. You will receive a reply from the Dutch tax office within 10 weeks.

Tax advisors in the Netherlands

Whatever your individual circumstances in the Netherlands, if you need help with your Dutch taxes, it’s a good idea to consult some professionals, so take a look at our list of Dutch tax advisors in the Netherlands. Here you will find a full list of expatsHaarlem’s partners, including tax advisors.

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