Are you eligible for the 30% ruling?

The 30% ruling with van oers

The 30%ruling

The 30% ruling is a specific wage tax exemption for workers hired from abroad who possess skills or expertise that are hard to find in the Netherlands.

How does the 30% ruling work?

Taxpayers who are awarded the ruling receive 30% of their wages tax-free for a duration of 8 years. This component is notionally qualified as a tax-free allowance for working in the Netherlands. The principal conditions for this regime since 1 January 2012 are:

  • The employee must possess skills or expertise that are hard to find or unavailable on the Dutch labour market.
  • During the 24 months immediately prior to the start of the employment, the employee must have spent at least 16 months living 150 km or more from the Dutch border.

Employee expertise/scarcity

This criterion is assumed to be reflected in the employee’s salary. If the wages are above a certain level, this condition will generally be satisfied. In 2015, the threshold for these wages was € 36,705. The wage requirement for employees below the age of 30 who are in possession of a Master’s degree is lower: € 27,901 (rate for 2015).

The 30% ruling with van oers

Non-dutch background

The 150-km requirement mentioned above was introduced in 2012. However, it is unclear whether the tax authorities may in fact impose this requirement, and questions have been referred to the European Court of Justice. If the employee satisfies all the requirements apart from the 150 km requirement, it may as yet be wise to apply for the ruling.

Shorter duration

Any previous time that the employee spent working or living in the Netherlands might affect the duration of the ruling. However, certain short stays are disregarded.

Additional tax advantages

Employees who satisfy the conditions for the 30% ruling may also be awarded additional tax-free allowances. The most important of these are an allowance for the costs of an international school for the employee’s children and an allowance for relocation costs. Another option that is open to these employees is to be treated as a non-resident, to avoid triggering Dutch tax on their income from savings and investments.

The 30% ruling with van oers

Applying for the 30% ruling

The employee and the employer need to agree that they will apply the 30% ruling. They must then submit a joint and substantiated request to the Dutch Tax and Customs Administration. We can help you will all the necessary formalities. If you believe that you, or your employee, might qualify for the 30% ruling, contact us for further information, no strings attached.

Edgar van Hassel
Edgar van Hassel | Tax manager
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