30% Tax Ruling
If you’re looking for a job in the Netherlands, you may have heard of the 30% Tax Ruling. It sounds great, but what does it actually mean? And how do apply for it? Search X makes it easier.
The 30% reimbursement ruling (better known as the 30% tax ruling or the 30% facility) is a tax advantage for highly skilled migrants moving to the Netherlands for a specific employment role. When the necessary conditions are met, the employer can grant a tax-free allowance equivalent to 30% of the gross salary subject to Dutch payroll tax.
Conditions of the 30% tax ruling:
- The employee has to work as an employee
- The employer and employee have to agree in writing that the 30% ruling is applicable
- The employee has to transfer or be recruited from abroad to a Dutch employer
- The employee has to have specific experience or expertise that is not or is rarely available in the Netherlands
- The gross annual salary has to surpass a minimum (adjusted annually)
The annual taxable salary for an employee cannot be less than € 38.961
Practical examples of the 30% ruling:
An employee who is 35 years old receives a salary of € 100.000. This employee does meet the minimum salary to receive the full 30% ruling. After taking into account the 30% ruling his taxable salary will be € 70.000. In addition, he receives a tax-free allowance of € 30.000.
An employee who is 35 years old receives a salary of € 50.000. If the 30% ruling would be taken into account in full, his taxable salary would be € 35.000. This is lower than the mandatory salary and therefore not allowed. In this case, he would only benefit from the 30% ruling partially, for a maximum amount of (€ 50.000 -/- € 38.961 ) € 11.039 per year.
Additional points of attention
- Retrospective Period: The 30% ruling becomes effective retroactively if the application is submitted within 4 months after starting your employment. If the application is submitted after 4 months, it will become effective as of the first day of the month following the application month.
- Duration: The maximum duration of the ruling is eight years and will be reduced by previous periods you have stayed in the Netherlands.
- Changing Jobs: If you change jobs you can apply for a continuation of the ruling, provided that you still meet the conditions regarding specific skills and you start the new employment within three months of terminating the previous one.
Use the Dutch Tax Income Calculator to calculate a monthly net income applying the 30%-ruling : https://thetax.nl/
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