The Netherlands’ 30% ruling, simplified

The Netherlands’ 30% ruling, simplified

A no-fuss explanation on qualifying and applying the 30% ruling in the Netherlands

21 September 2020

Here is a refined outline of the important bits you should know around eligibility, how to practically apply and who to contact for help on the Netherland’s 30% Ruling.

 

General Qualifications for the 30% ruling

  • The employee must be employed by a Dutch B.V and have a contract.
  • The employee must be hired or recruited from abroad.
  • The employer must vouch that the employee has a special skill or expertise that is hard to find on the Dutch labour market.
  • The gross salary has to surpass a minimum. Details on salary qualifications below.

 

Salary Qualifications for the 30% Ruling

  • General: To qualify for the 30% ruling/ tax reduction your income must be above €38.347 (including Holiday Allowance and 13th month). If the employee’s income is above €54.782 (including Holiday Allowance and 13th month) they will benefit from the FULL 30% tax reduction 

 

  • Masters Degree Holders: If you have a Master’s degree and are under the age of 30, to qualify for 30% tax ruling, your threshold is €29,149 (including Holiday Allowance and 13th month). On a Masters, if your income is above €41,499 you will benefit from the full 30% tax reduction. 

 

  • Over 30 with a masters degree: If you are over 30 and have a Masters degree, your salary must be €38.347 (including Holiday Allowance and 13th month).

 

 

You’ll want to know that…

  • The 30% ruling takes up to 4 months to be approved.
  • If the application is submitted within 4 months of the employee’s start date, they will receive back pay to compensate for the months already worked in the new job.
  • From Jan 1 2019, the maximum duration of the 30% ruling is 5 years.
  • If you change jobs, you can apply to continue your 30% ruling in your new role.

 

Applying

The application is a joint effort between employer and employee. It is usually the employer that takes the lead on the 30% ruling application.

 

The employee will need:

  • Completed application form
  • Passport or valid photo ID
  • Employment contract or letter from your employer confirming that you have been offered the position
  • A BSN number, if you have it
  • Dutch residence and work permits (if applicable)
  • Details of your Dutch address
  • Proof of residence in another country before being hired
  • Company details including company tax number
  • A written agreement clearly stating that both parties have consented to the application for the ruling

 

Other Contacts & Resources

Tax and Customs Administration Office (Belastingdienst)

 

Resources

I am Amsterdam: An in-depth look at the Netherlands’ 30% ruling