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